Is Fatz Cafe Going Out Of Business 2024?

Fatz Cafe, a restaurant chain that reached its heights in 2011 with 50 units, is now struggling to conduct its operations. We bet you might have heard these headlines too, saying: “Is Fatz Cafe going out of business 2024?”.

Is Fatz Cafe Going Out Of Business

So, if you are a fan of this restaurant chain, then you are at the right place. In this article, we will discuss whether Fatz Cafe really going out of business with the facts and how this restaurant chain joined the list of Hello Bello and Dot’s Pretzels.


Is Fatz Cafe Going Out Of Business 2024?

Yes, Fatz Cafe is going out of business in 2024. The restaurant chain abruptly closed all its 18 locations. These locations are spread across Georgia, North Carolina, Tennessee, South Carolina and Virginia.

This closure was effective immediately as of 23 August 2024. The notice was posted on the doors of these restaurants reading:

We are sorry to announce that after proudly serving this and many other communities for years, Fatz Cafe will be closed permanently. We thank you for your support throughout our years in business.

Moreover, these closures also surprised the employees and patrons, as it happened without prior notice.


Who Owns Fatz Cafe?

Fatz Cafe is owned by Cafe Enterprises Inc. It is also responsible for managing and operating the restaurant chain as a parent company.

Cafe Enterprises Inc. was established in 1988 and, over the years, has overseen the operations of restaurants suck as FATZ Cafe, Tavern 24, and Tablefields.


Why Is Fatz Cafe Going Out Of Business?

Why Is Fatz Cafe Going Out Of Business

The reason behind the closure of all the 18 locations remains unclear. However, the company’s previous records indicate that Fatz Cafe has been facing financial difficulties, which might be one potential reason.

The report mentions that the chain has been facing challenges over the years, including the reduction in the number of outlets.

In 2011, the chain had 50 units, but as the decline continued, it resulted in the closure of 10 locations in 2020. The sale also dropped by a whopping 42%.

Moreover, the pandemic exacerbated the financial challenges for the cafe, including supply chain disruptions, reduced customer traffic, and increased operating costs.

Another reason for the closure might be the bankruptcy. Bankruptcy became inevitable for the restaurant chain after it loaded $51 million from lenders and vendors.

The company then reorganized after one of its creditors agreed to acquire the chain. In 2022, the ownership changed again when ACM Fatz VII bought a controlling stake in the company.

However, just after eight months, Fatz Cafe was back in bankruptcy.


Who Are The Competitors Of Fatz Cafe?

The table below lists the competitors and alternatives of Fatz Cafe:

Competitor NameRevenueNumber of EmployeesEmployee Growth
CentraArchy$23.8M1364%
Fatz Cafe$72.2M33062%
The Mill House$3.6M29-9%
Bocao Lanches$4.9M3525%
Verde Restaurant…$3.6M2916%
Sushi With Gust…$3.6M29-15%
Slightly North …$5.3M3812%
Solopizza$11.7M74-3%
Ovation Brands$91.4M418N/A

Conclusion

If you have ever had the Calabash Chicken of Fatz Cafe, you might be worried about people talking: Is Fatz Cafe going out of business 2024?

Fatz Cafe has made its way since 1988. The restaurant chain had its restaurants in Georgia, North Carolina, Tennessee, Virginia, and South Carolina. The renowned cuisine of the restaurant was the lightly breaded version of fried chicken, which offered the taste of Southern cuisine.

However, the chain has recently been through very difficult times, contributing to the closures. But the chain is making difficult decisions to stay afloat in the market.


FAQs

Who bought Fatz Cafe?

The ownership of the cafe was changed in 2022 when ACM Fatz VII, which is affiliated with Falcom Holding Management, bought controlling stakes in the business.

How many locations does Fatz Cafe has?

Fatz Cafe has 18 locations across Georgia, North Carolina, South Carolina, Virginia, and Tennessee, now permanently closed.

Where did Fatz Cafe first started?

The very first Fatz Cafe was opened in 1988 on the site of a roadside peach stand in Spartanburg, SC.

Where is the headquarters of Fatz Cafe?

Fatz Cafe is headquartered in South Carolina. Its full corporate address is 4324 Wade Hampton Blvd, Taylors, SC.

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