The franchise owner of the World of Beer Bar & Kitchen in Jacksonville said the Chapter 11 bankruptcy of the parent company won’t impact his business.
The World of Beer Bar & Kitchen at 5105 Butler Blvd., off of Interstate 95 in the Southpoint area, reopened July 16. Jay Patel is the franchisee.
“What WOB corporate has done will not effect our location at all. We will still be the same and open to the community,” Patel said in an email.
Tampa-headquartered World of Beer filed for Chapter 11 bankruptcy protection Aug. 2. A Chapter 11 bankruptcy allows a company to stay in business and restructure its finances and operations,
The restaurant chain cited rising interest rates, inflation, rising operation costs and customers being slow to return to pre-pandemic entertainment habits for the bankruptcy.
“Today’s restructuring ensures the long-term health and sustainability of WOB Bar & Kitchen. This step is a strategic move to realign our operations, reduce debt, and enhance our financial flexibility. We are confident in our future, backed by a solid plan and a dedicated team committed to delivering exceptional dining experiences,” company President and CEO Paul Avery said in a news release.
“This restructuring will place WOB Bar & Kitchen in a stronger position moving forward.”
World of Beer, founded in 2007, has 33 locations around the country.
Avery bought controlling interest in the company in 2013.
A World of Beer spokesperson said much of the debt is related to former locations and not new operations.
The World of Beer on Butler Boulevard returned about closing after a year in 2023. The building retained the signage and much of the furniture, which Patel is reusing.
The Jacksonville location has 60 employees.
Another franchisee opened two restaurants beginning in 2013 that were closed 2016. Those were in Tinseltown and Jacksonville Beach.
Over the past 12 months World of Beer has closed 14 locations. Eight were company-owned. There are 16 remaining corporate restaurants and 17 franchises, according to restaurantdive.com.
The website reports that the company has $25.6 million in secured debt and $3.8 million in unsecured debt.
The company had a 13% decline in sales from 2022 to 2023, according to Nation’s Restaurant News.
However, the chain continues to open new restaurants. Besides Jacksonville, a Hinesville, Georgia, location is expected to open in the coming weeks. Two Maryland stores in Bel-Air and Annapolis are to come online in early 2025, according to the release.
This is one of several restaurant chains seeking bankruptcy protections, including Red Lobster, Rubio’s, Tijuana Flats, Sticky Fingers, Boxer Ramen and Pizza Hut franchisee EYM.
Orlando-based Buca di Beppo filed for bankruptcy Aug. 5. The Buca di Beppo restaurant outside The Avenues mall closed in December 2017. The building was demolished and a Miller’s Alehouse is in that location at 10300 Southside Blvd.