World of Beer Bar & Kitchen Files for Chapter 11 Bankruptcy Amid Industry-Wide Struggles
Tampa, Florida-based World of Beer Bar & Kitchen has become the latest casualty in a string of restaurant chain bankruptcies, filing for Chapter 11 bankruptcy protection. The filings, which include several company affiliates—World of Beer Holdings, World of Beer Inc., and World of Beer Franchising LLC—were submitted on Friday in the United States District Court for the Middle District of Florida. The company reported assets and liabilities ranging between $10 million and $50 million, with fewer than 50 creditors listed.
The once-popular chain, known for its extensive beer offerings and lively tavern atmosphere, has cited a mix of economic pressures for its current predicament. Rising interest rates, escalating rent costs, and higher operating expenses have all played a role in the company’s financial woes. Additionally, the slow recovery from the pandemic continues to haunt many in the foodservice industry, and World of Beer is no exception. But perhaps most concerning for the chain is the decline in craft beer consumption—a key part of its business model—that has seen both dollar and case sales drop in 2022 and 2023.
World of Beer’s struggles are emblematic of a broader trend affecting mid-sized restaurant chains across the country. According to data from Technomic Ignite, the chain ended 2023 with $53.6 million in sales—a 13% decline from the previous year. The company also experienced a 12.5% decrease in its unit count, finishing the year with 42 locations, down from the heights it reached in earlier years.
Founded in 2007, World of Beer quickly became a darling of the craft beer movement. By 2013, it was recognized by Nation’s Restaurant News as a “growth chain” with ambitious expansion plans. At its peak in 2015, World of Beer boasted 75 locations across 20 states and had its sights set on international markets, including China, India, and the Philippines. The company even announced in 2016 that it aimed to surpass 100 locations. Its appeal was built on an impressive selection of around 500 beers available by the can or bottle, and 50 on tap at each location, complemented by a menu of “tavern fare.” Each establishment was managed by a local beer expert, ensuring that the beer offerings were tailored to the tastes and preferences of the local community.
However, the post-pandemic landscape has proven unforgiving for many restaurant chains, especially those that thrived on the craft beer craze. The decline in consumer interest in craft beers, combined with the rising costs of doing business, has forced World of Beer to face the harsh reality that many of its peers have also confronted. The company’s bankruptcy filing is part of a growing trend in the foodservice industry, where several well-known names have been forced to seek financial protection.
This year alone, the restaurant sector has seen a spate of high-profile bankruptcies. Red Lobster, one of the biggest names in the industry, also filed for bankruptcy, alongside other brands like Rubio’s, Tender Greens, Tocaya, Tijuana Flats, Melt Bar & Grilled, Sticky Fingers, Boxer Ramen, Oberweis Dairy, and Foxtrot/Dom’s Kitchen. Even a Pizza Hut franchisee, EYM, has not been immune to the economic pressures plaguing the industry.
The challenges faced by World of Beer and its counterparts underscore the broader difficulties that the foodservice sector is grappling with. As consumers become more selective and costs continue to rise, many chains find themselves struggling to adapt. The bankruptcy filings suggest that without significant changes, more restaurant brands could follow suit, leaving a lasting impact on the industry.
World of Beer’s situation serves as a cautionary tale for other mid-sized restaurant chains navigating these turbulent economic waters. While the company’s future remains uncertain, its filing for Chapter 11 protection marks a critical juncture in its history—one that will determine whether it can survive in an increasingly competitive and challenging market. As the industry watches closely, World of Beer’s next moves will be pivotal in shaping its fate in the coming months.
