Many restaurants have faced tough times due to changing consumer habits, rising costs, and the impact of global events. Some, including the iconic Red Lobster, have been forced to seek bankruptcy protection (also known as Chapter 11) but are now trying to claw their way back into the hearts of customers.
Through restructuring, rebranding, and improving their menus, these chains are hoping to regain their once-loyal customer base while attracting new diners to their establishments.
From seafood joints to ice cream parlors, here are 15 restaurant chains that are making a comeback after undergoing financial struggles.
1. Red Lobster
Red Lobster faced financial challenges due to rising seafood costs and declining customer traffic, especially during the COVID-19 pandemic. The chain filed for bankruptcy in May 2024, but is now focusing on menu innovation and expanding their “Endless Shrimp” promotion to attract customers. It’s also hoping to improve online ordering and delivery options to cater to changing dining preferences.
By emphasizing their affordable, high-quality seafood, Red Lobster hopes to win back customers seeking an indulgent but reasonably-priced meal.
2. Ruby Tuesday
Ruby Tuesday’s 2020 bankruptcy was driven by stiff competition, high overhead costs, and declining foot traffic, as many of their locations were based in shopping centers and strip malls. The chain also pointed to pandemic restrictions as a factor that impacted its sales, as many malls temporarily shuttered in-person dining. After closing underperforming sites, Ruby Tuesday shifted focus to healthier menu options and revamping it’s salad bar, which was once a hallmark of the chain.
Though the chain is banking on its refreshed image, expanded menu, and revamped delivery to bring customers back, only time will tell if the efforts are successful.
3. Friendly’s
Known for its robust ice cream selection and family-friendly atmosphere, Friendly’s struggled with high operational costs and an inability to adapt to fast-casual dining trends. After declaring bankruptcy in 2011, the chain has since refocused on improving customer service and streamlining its menu. Friendly’s is also modernizing its restaurants and investing in digital platforms to enhance the customer experience.
With these changes, the chain hopes to recapture its nostalgic and charming appeal while adapting to modern tastes and shifting preferences.
In 2025, Friendly’s was sold to Legacy Brands International, led by major franchisee Amol Kohli. After years of financial trouble and multiple bankruptcies, the chain aims to revive and expand beyond the Northeast under this familiar new owner.
4. Sbarro
Famous for its pizza by the slice, Sbarro filed for bankruptcy protection in 2011 due to over-expansion and reliance on mall food courts, which suffered from declining foot traffic. To make a comeback, Sbarro closed many underperforming locations and shifted focus to smaller, more profitable spaces in travel hubs and urban areas. The chain also introduced new menu items and focused on improving the quality of their food.
Though Sbarro hopes to recapture the grab-and-go customer looking for a quick, affordable bite, real ones know their pizza is absolute trash. Sorry, not sorry.
5. Fuddruckers
Fuddruckers, known for its customizable burgers and fun, family-friendly atmosphere, filed for bankruptcy in 2010 due to declining sales and increased competition from other burger chains. It also struggled with high operational costs and a limited ability to adapt to changing consumer preferences for faster, healthier options. To stage a comeback, Fuddruckers has focused on refreshing its brand by enhancing its menu with higher-quality ingredients and improving customer service.
In 2025, Fuddruckers made its return to Washington, D.C.’s Chinatown with a new two-level restaurant. The comeback was led by local entrepreneur Nicholas Perkins, who bought the franchise business in 2021 through Black Titan Enterprises. The revived location sticks to the chain’s classic formula — grilled-to-order burgers, fresh-baked buns, and a full toppings bar — as part of a broader effort to rebuild the brand’s presence.
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6. Joe’s Crab Shack
Joe’s Crab Shack suffered from declining sales and high operational costs, which led its parent company to file for bankruptcy in 2017. Since then, the chain has focused on restructuring by closing less profitable locations and refining its seafood offerings to attract existing and new customers. The chain is also leveraging the appeal of its fun, beach-themed ambiance in hopes of attracting a younger demographic.
It’s also invested in improving its online ordering and delivery services to cater to the growing demand for convenient and accessible dining options.
7. California Pizza Kitchen
California Pizza Kitchen’s 2020 bankruptcy filing was driven by the pandemic’s impact on casual dining and the chain’s heavy reliance on in-restaurant dining. To come back stronger, it’s since embraced online ordering, takeout, and delivery, as well as introduced a line of frozen pizzas sold in grocery stores. The chain also launched new plant-based and health-conscious menu items to attract vegetarian and vegan diners.
In addition, CPK has revamped its loyalty program to offer rewards and discounts in hopes of further incentivizing repeat visits and online purchases.
In 2025, California Pizza Kitchen announced its return to North County with a new restaurant opening in Encinitas. The move reflects the brand’s effort to reestablish itself after past challenges, leaning on nostalgia and renewed interest in its signature California-style pizzas.
8. Quiznos
Once a major player in the world of sandwiches (Joey from “Friends” would approve), Quiznos filed for bankruptcy in 2014 due to over-expansion and increased competition from rivals like Subway. To revive its brand, Quiznos has since simplified its menu and rebranded to focus on higher-quality ingredients and unique offerings like toasted subs and signature sauces.
The chain is also expanding internationally by targeting markets where it still holds a strong brand recognition.
In 2025, REGO Restaurant Group — the parent company of Quiznos and Taco del Mar — named Neel Patel as its new CEO. Under his leadership, Quiznos is launching a new modular, prefab store design called the Qube, a compact drive-thru-ready unit that can be built off-site to reduce construction costs and speed up openings. The strategy is meant to boost franchise growth, improve profitability, and make it easier for new operators to join, positioning the brands for a modern fast-casual revival.
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9. Cici’s Pizza
Known for its pizza buffet, Cici’s filed for bankruptcy in 2021 as buffet-style dining lost popularity, especially during the pandemic. The chain has since shifted gears to enhance it’s value proposition by offering affordable family deals and improving the quality of it’s pizza. Cici’s has also started experimenting with off-premise options like online ordering and delivery to offer a more accessible dining experience.
By emphasizing affordability and convenience, the chain hopes to attract budget-conscious families and regain its place in the competitive fast-food market.
Now, in 2025, Cici’s is celebrating its 40th anniversary with a steady comeback. The brand has stabilized at 270 locations and is actively expanding again, drawing in families with bold new menu items like Oreo Brownie Pizza, Chicken and Waffle Pizza, and Nashville Hot Chicken Pizza — all while sticking to its no-frozen-dough policy.
10. Boston Market
Boston Market has long struggled with declining sales and changing consumer tastes, especially as demand for traditional rotisserie chicken waned. After filing for bankruptcy in early 2024 for a second time, the chain has refocused on menu variety by introducing healthier sides and plant-based options. The chain is also improving its digital ordering and delivery services in hopes of staying competitive.
Though the brand hopes to attract health-conscious customers and those seeking comfort food with a modern twist, some are saying the chain is in its “final days.”
11. Krystal
Krystal, known for its small square burgers and late-night dining, faced bankruptcy in 2020 due to operational inefficiencies and an inability to modernize its restaurants. The chain has since restructured by closing underperforming locations and revamping it’s menu. The southern burger chain is also testing new concepts like drive-thru-only locations in efforts to cater to fast-food’s always evolving landscape.
With a focus on speed and value, Krystal is trying to win back the late-night and on-the-go crowd.
12. Garbanzo Mediterranean Fresh
Garbanzo Mediterranean Fresh filed for bankruptcy protection in 2020, citing a significant drop in foot traffic and in-person dining during the pandemic. The chain has since focused on streamlining its menu to highlight its most popular, fresh, and healthy offerings, including customizable bowls and wraps. It also hopes to expand it’s digital presence with improved online ordering and delivery options to cater to new customers.
With an emphasis on fresh, nutritious food and a commitment to faster service, Garbanzo is hoping to regain its footing in the casual Mediterranean food space.
In 2025 the chain is reopening with a new location at Denver International Airport. The restaurant will reintroduce its Mediterranean menu of falafel, hummus, pitas, and salads, aiming to reconnect with travelers seeking fresh, healthy options. The airport opening marks a key step in the brand’s effort to revive and rebuild its presence after restructuring.
13. Souplantation (Sweet Tomatoes)
Souplantation, also known as Sweet Tomatoes in some regions, was a popular chain specializing in all-you-can-eat salad bars and healthy buffet options. But the chain was forced to file for bankruptcy protection in 2020 as the COVID-19 pandemic dealt a severe blow to buffet-style dining. Souplantation’s business model, which was heavily reliant on self-serve buffets, became unsustainable due to health and safety concerns.
In 2025 this chain announced they are making a return under new ownership, aiming to revive what longtime buffet fans loved while adapting to modern expectations. The relaunch centers on improved food safety, smaller and more efficient store formats, and refreshed recipes that update the classic offerings. According to the brand’s new CEO, the goal is to “bring back the heart of Souplantation while modernizing it for today’s diners,” blending nostalgia with a more sustainable, contemporary approach.
14. Bennigan’s
Bennigan’s, the once-popular chain that collapsed into Chapter 7 bankruptcy in 2008, is slowly staging a comeback. Since acquiring the brand in 2015, current owner Paul Mangiamele has worked to revive it by opening new franchises, including a few full-service restaurants in the U.S. and several abroad, as well as launching a smaller, takeout-focused concept called Bennigan’s On The Fly.
Central to the revival is the chain’s most famous item — the deep-fried, powdered-sugar-dusted Monte Cristo sandwich — which remains the nostalgic anchor of the brand’s identity and a key part of its attempt to reconnect with longtime fans.
15. Steak’n Shake
Steak ’n Shake — the classic burger-and-shake chain — is making a strong comeback after years of decline. Following the closure of around 200 locations between 2018 and 2025, the brand reinvented itself with a low-cost franchise model, a shift from traditional table service to self-service kiosks, and updates like returning to beef-fat-fried fries and even accepting cryptocurrency payments.
These changes have paid off: same-store sales are up, including a 10.7% increase in the second quarter of 2025. Overall, Steak ’n Shake’s revival shows how bold operational changes can bring a struggling legacy chain back to relevance.
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