Buca di Beppo and World of Beer Bar & Kitchen have joined the bevy of restaurant chains that have filed for Chapter 11 bankruptcy protection this year amid a challenging post-pandemic economic environment.

The shakeout includes Red Lobster and Rubio's — both in the process of getting new ownership — and Tijuana Flats. In several cases, the chains say their financial woes date back to the start of the pandemic and stem from higher labor and food costs, inflation and consumers cutting back discretionary spending, such as dining out. Some of the chains have a full-service format, with sit-down dining and servers, including Buca di Beppo, an Italian eatery.

Orlando, Florida-based Buca di Beppo on Monday said it had voluntarily filed for reorganization in the U.S. Bankruptcy Court for the Northern District of Texas. During the past week or so, the chain shuttered roughly a dozen restaurants in advance of its Chapter 11 proceeding.

"The goal of the restructuring effort is to ensure a seamless transition and to position the brand for future success," Buca di Beppo said in a statement. "This decision is aimed at optimizing operations and enhancing the dining experience for its valued customers."

And fellow Florida-based World of Beer, headquartered in Tampa, last Friday sought Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Florida. The chain, which offers a selection of hundreds of beers by bottle and on tap, has closed just over a dozen locations over the past 12 months. It bills itself as the "original craft beer restaurant."

"While the restaurant industry has faced significant challenges, this move is the best next step for our brand," the chain's president, Rich Saultz, said in a statement on the Chapter 11 filing. "By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future.”

The latest filings come as so-called fast-casual chains such as Chipotle Mexican Grill and Shake Shack just reported strong second-quarter results. Chipotle saw total revenue increase 18.2% to $3 billion year over year, while its comparable restaurant sales increased 11.1%. For Shake Shack, its total revenue rose 16.4%, to $316.5 million, versus 2023, while same-Shack sales were up 4%.

The restaurant chains that have run into trouble often have a common problem, namely not keeping up with the times, according to Anjee Solanki, national director of retail services at the brokerage Colliers.

"Their business model hasn't reinvented itself to the current customer demands," she told CoStar News.

Buca di Beppo — owned by Earl Enterprises, formerly known as Planet Hollywood — said it is restructuring 44 core restaurants across 14 states and is in the process of opening one new location.

“We believe this path will best allow us to continue to serve Buca’s patrons and communities for many years to come," William Snyder, the chain's chief restructuring officer, said in a statement. "We are open for business in 44 locations, and we expect day-to-day operations to continue uninterrupted. We anticipate moving through this process as quickly and efficiently as possible to emerge as a stronger organization built for the future.”

In a court filing, Buca di Beppo offered a brief explanation of its financial challenges.

"The debtors’ operations have been impacted by a significant drop in sales, rising food and labor costs, continued staffing challenges, and changes in consumer preferences," the chain said.

Buca di Beppo, founded in Minneapolis in 1993, also described itself as being "known for its large portions, eclectic decor and a festive atmosphere that encourages sharing and communal dining." Planet Hollywood/Earl Enterprises purchased it in 2008 for $28.5 million.

World of Beer launched in 2007 and was considered a fast-growing chain, capitalizing on the popularity of craft beer. At one point it had 75 locations but by the end of last year it was down to about 40. A number of craft breweries have filed for Chapter 11 protection in general, and World of Beer in particular got into some costly legal disputes with its franchisees.

"With World of Beer, what you're seeing I think, this is just something that's happening across the the globe," Solanki said. "Everyone I've talked to that's in the wine and beer industry — I have a lot of friends in that business — they've definitely seen a decline, in purchase because it's unhealthy. From a health and wellness perspective, a lot of the millennials are like, 'Nope, that's not our choice.' "

Gray Reed & McGraw is serving as legal adviser to Buca di Beppo. CR3 Partners is serving as financial adviser and providing corporate leadership as chief restructuring officer. Stout Capital is serving as investment banker.