Fast Casual Restaurant Chain Files Surprise Chapter 11 Bankruptcy

It seems like every type of food has been tried in restaurants that sort of copy the Chipotle model.

That's partly because "It's the Chipotle of XXX food" is an understandable elevator pitch. People like the idea of fast-casual restaurants that offer complete customization.

One of the most appealing parts of the Chipotle experience is that each customer can customize their burrito. taco, or bowl. If you hate guacamole or want extra, that's easy enough to do given the chain's model.

The problem for new chains using a similar fast casual, build-to-taste model, is that not all types of food are equally popular. In areas like Chinese and pizza, it's hard to launch new concepts because the space is very crowded.

In other cuisines, the new eatery not only has to sell customers on both its model and its menu. It's easy for people to order at Chipotle because most Americans know basic Mexican fast food cuisine really well.

When it comes to less established cuisines, there's an educational aspect that has to happen along with the basic marketing of getting people to eat at an unfamiliar restaurant. 

That's at least part of the problem for one fast-casual chain that has been closing restaurants which has now filed for Chapter 11 bankruptcy.

Americans Have to Embrace the Menu

Most Americans know the typical Chinese, Italian, Mexican, and maybe Japanese restaurant menus pretty well. When you move into Thai food, Vietnamese cuisine, German restaurants, and other global cuisines, there's less familiarity.

Many global dishes are familiar in parts of the country but not others. You might actually love Vietnamese pho (a rice noodle soup dish) or Pad Thai (a basic Thai noodle dish) but if you don't know what they are, you may not order them.

A lack of familiarity also makes it harder to order at a restaurant that offers customization. If you don't know the dish, it's hard to know whether you want to add hot spice or a sprinkle of bean sprouts.

Many Americans only know Mediterranean cuisine in a very broad way. That means that Roti, a chain serving a classic Mediterranean menu in a fast-casual setting had some work to do in order to grow its audience.

"Our story starts with spice. Roti has forged a modern connection to the original spice road; one of the world’s most storied destinations. The result is a menu that’s vibrant with exciting Eastern Mediterranean flavor. The subtle scent of saffron, the zest of za’atar, the nuttiness of cumin, the earthiness of turmeric, and so many more, come together to make every bite its own uniquely delicious experience," the company shared on its website.

Roti files for Chapter 11 bankruptcy

Roti has been closing restaurants over the past few years. It has shrunk to 20 locations, about half of what it had before the Covid pandemic.

Now, the company has filed for Chapter 11 bankruptcy protection.

"The Chicago-based chain said it plans to use the Chapter 11 process to find new investors or a buyer as it reorganizes its finances. The company says that it hopes to ensure that its locations in Chicago, Minneapolis, and Washington, D.C., will remain open," Restaurant Business reported.

More bankruptcy:

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• Another distressed trucking company files Chapter 11 bankruptcy

“Our vision to create happier, healthier, and more flavorful lives comes to life by providing our guests with exceptional food experiences — even in the face of current headwinds,” CEO Justin Seamonds said in a statement “After careful consideration, filing for bankruptcy protection was the best way to address our challenges.”