If you are an entrepreneur looking to own a Golden Corral franchise, then hold your horses as no doubt Golden Corral has a delicious menu that tempts people, and it is indeed a profitable business, but the rumors are that Golden Corral is going out of business 2023.
Shocking, Isn’t it? Once a houseful restaurant chain is entangled in the rumors of: Is Golden Corral going out of business in 2023?
However, before coming to a conclusion, you should always check the facts first. Therefore, keep reading this article to know whether the rumors are true or are just exaggerated talks.
About Golden Corral And How It Started?
Golden Corral is an American-style restaurant chain that offers an all-you-can-eat buffet and grill. It is a privately held company whose locations are in the U.S.
The idea of the Golden Corral was envisioned by James Maynard and William F. Carl in 1971. Then on January 3, 1973, they opened their first Golden Corral Family Steakhouse.
Since then, the company has expanded to nearly 500 locations across the United States of America. The company reported gross sales of over $1.53 billion in 2007.
The company then expanded to locations like Philadelphia, New Orleans, North Carolina, and Washington.
Who Owns Golden Corral?
Golden Corral is a privately held company owned by Investors Management Corporation.
Investors Management Corporation is a holding company for service industries and food services whose President and CEO is James H. Maynard.
He is an American entrepreneur who, with the help of Willina F. Carl, opened his first Golden Corral restaurant in 1973. He also introduced a Family Steak House Restaurant under the brand and other IMC subsidiaries.
As of 2023, James owns more than 500 restaurants across the United States. It is also reported that James and his wife Connie donated $10.5 million to Vidant Medical Center, the children’s hospital, after which the hospital’s name was replaced with James and Connie Maynard Children’s Hospital.
Why Is Golden Corral So Special?
Golden Corral has been in the restaurant business for 50 years. It is well known for its endless breakfast, lunch, and dinner buffet.
Golden Corral always has something for everyone, offering tempting options to explore. But what makes it so special is its pocket-friendly rates and family-friendly environment, as customers get unlimited food and no tipping policy.
The no-tipping policy of the restaurant is what differentiates it from other restaurants. So, overall, the budget-friendly and family-friendly atmosphere, along with the no-tipping policy, makes dining easy and relaxed for people.
Is Golden Corral Going Out Of Business 2023?
Golden Corral is an American family-style restaurant chain that serves a variety of food, but lately, it has been closing most of its restaurants due to various reasons.
Due to the closures, the restaurant chain has to lay off hundreds of employees, including managers, support center employees, field support employees, and hourly workers.
During the time period, the locations were providing curbside delivery, carryout, and home delivery. However, its Where-In-Restaurant dining was shut down.
However, Golden Corral is still in business and is all set for its fast-casual and buffet debut.
Why Is Golden Corral Closing?
There are many reasons for the hundreds of store closures of Golden Corral. However, here are the 2 significant reasons why Golden Corral has to close its stores:
One of the significant reasons is competition from other buffet-styled restaurants. Restaurants like Hometown Buffet and Old Country Buffet contributed to the competition by providing affordable dining experiences to the customers.
Golden Corral also faced the challenge of changing consumer tastes and preferences. Consumers may be less likely to visit a buffet-style restaurant that serves high-calorie dishes, ultimately decreasing its sales.
2. Pandemic And Bankruptcy
The COVID-19 pandemic has proven to be the toughest time for every company, irrespective of the industry. However, not all companies were equally impacted by the coronavirus. Some have survived, some are still struggling, and some have permanently closed their doors.
Due to the severe impact of the pandemic, Golden Corral’s largest franchisee, 1069 Restaurant Group, was declared insolvent and owes a debt of $49.7 million.
Another franchisee, which is deemed to be the second-largest franchisee of Golden Corral, is Platinum Corral, which was forced to file for Chapter 11 bankruptcy protection after closing more than half of its restaurants due to low sales.
According to the filing, the liabilities of the Platinum Corral have been reported to be $49.4 million.
How Many Golden Corral Locations Have Been Closed In The U.S.?
In the early days of the pandemic, Golden Corral was forced to close approximately 125 locations. This includes the outlets in Grand Rapids, Alton, Illinois, and a 12-year-old location in Michigan that was demolished to make way for a new Chick-fil-A.
However, the post-pandemic scenes of the restaurant chain indicate a radiant future. It has reopened 6 of its locations with modified service models and plans to reopen 18 more by the end of the year.
Also, all of the locations of Golden Corral are reported to be in the United States and Puerto Rico. So, as of 2023, there are 396 locations of Golden Corral in the U.S.
What Is The Future Of Golden Corral?
After the struggling years of pandemic, Golden Corral is all set for its debut.
It came with a new service model that will feature dine-in, takeout, delivery, and drive-thru options, along with a menu of slow-cooked, served, and family restaurants.
The target audience will be busy families, and the prices will start around $5.99 for lunch/ dinner. The menu will cater to large groups and take-home feasts.
Moreover, in the fiscal year 2022, the restaurant chain experienced system-wide sales of about $1.4 million, which was up more than 21% from the previous year.
The company’s CEO, Lance Trenary, added the chain will introduce a new Homeward kitchen while also expanding its flagship concept.
He further added that we have got a long way ahead of us, and they have only completed the halftime as they just celebrated 50 years. And this is not the end of the brand’s journey; there are a lot of blue skies further to the brand.
Golden Corral has been in the business for 50 years, but due to the challenges of the pandemic, it has been struggling to survive.
However, the restaurant chain has illustrated great strength in the face of challenges such as the pandemic, low sales, high competition, and several other difficulties.
Golden Corral is manageable and is determined to expand its business further with a new service model.
Golden Corral is one of those buffets that survived the pandemic, which some restaurants like Fur’s Fresh Buffet and Old Country Buffet couldn’t. They filed for bankruptcy and then permanently closed their operations.
We hope this article has debunked all the rumors regarding ‘Is Golden Corral going out of business 2023?’ and cleared your predicament.
How many Golden Corral locations has been closed?
Golden Corral initially closed 35 company-operated restaurants. According to the CEO of the company, they have been operating 290 units, with 40 of them operating as cafeterias.
What is Golden Corral Controversy?
In July 2013, a YouTube video was uploaded accusing the Port Orange, Florida Golden Corral restaurant was improperly storing the prepared and raw food next to their dumpster.
Where is the world's largest Golden Corral?
Branson’s Golden Corral Buffet is the world’s largest Golden Corral. It has a capacity of 650 seatings.