AN iconic restaurant well-known for its upscale nature, unique cuisine options, and celebrity guests is the latest dining chain to file for Chapter 11 bankruptcy.
Although a celebrity hotspot, its star power may not be enough to save its locations across six states from closure as the chain’s bankruptcy procedures ensue.
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Founded in Toronto, Canada, in 2016, Planta is a 100% plant-based restaurant chain known for its upscale vegan cuisine.
Many celebrity guests have dined at the chain over the years, such as Bella Hadid and Hailey Bieber.
Part of Planta’s fame can be attributed to an Instagram video Pharrell Williams posted showing him eating at the chain’s Miami Beach location in 2018.
Despite its A-list clientele, the chain has proven susceptible to the current pressures weighing down on the restaurant industry.
Planta filed for Chapter 11 bankruptcy protection on Monday in Delaware, citing between $10 million and $50 million in liabilities compared to just $50,000 to $100,000 in assets.
The vegan chain currently operates 18 locations, with spots in Florida, Atlanta, New York, Los Angeles, Chicago, Maryland, and DC, as well as Toronto, listed on its website.
Although Planta has yet to reveal closure plans for any of its restaurants, they may not be safe as the bankruptcy process unfolds.
RISE AND FALL
Planta opened its first US location in Florida in 2018 amid heightened interest in plant-based diets and meat alternatives.
The chain is characterized by high-end restaurants and Asian-inspired, plant-based offerings such as its Firecracker Wings made with cauliflower and plant-based Planta Burger.
Diners and celebrities have flocked to the restaurant in search of healthy alternatives, pushing Planta’s rapid growth and leading the company to build 12 US locations in three years.
While the chain’s sales have skyrocketed from $3.5 million in 2016 to $46 million last year, Planta has faced mounting debt.
The restaurant’s struggles were exacerbated by the pandemic, which led to closures, heavy reliance on expensive third-party delivery, a drop in traffic, and profit loss.
This resulted in “irrecoverable damage,” Planta CEO Steven Salm shared in a court filing.
A consumer slowdown over the past two years, worsened by the chain’s forced menu price hikes due to inflation, have further drained the company’s profits.
Restaurant closures in 2025
Denny’s – Denny’s has confirmed that up to 150 locations are set to close in the US by the end of the year as many of them are no longer profitable.
Red Lobster – The chain has said that it plans to close over 100 stores across the country this year as new CEO Damola Adamolekun takes over.
TGI Friday’s – TGI Friday’s is still being forced to shutter locations thanks to a bankruptcy filing, including 30 in April alone.
Applebee’s – This chain is projecting a loss of 20 to 35 Applebee’s spots in 2025 but is teaming up with IHOP to introduce dual-branded locations with a curated menu of the two’s best items.
Noodles & Company – This emporium is set to close between 17 and 21 locations in 2025 following a difficult 2024.
Planta ultimately fell behind on lease payments, culminating in its bankruptcy filing this week.
The celebrity hotspot is not alone in its struggles.
Over 30 restaurant chains have filed for bankruptcy since the start of 2024 due to the harsh economic landscape, including iconic companies such as:
- Red Lobster
- TGI Fridays
- Tijuana Flats
- On the Border
- Hooters
- Buca di Beppo
- Bertucci’s
PLANT PROBLEMS
While Planta rose to popularity thanks to consumer interest in plant-based dining options as an alternative to meat, the trend has struggled more recently.
Plant-based meat options are typically healthier than real meat but are often higher in sugar and missing key nutrients found in the real deal, research has shown.
As consumers seek healthier and more wholesome foods, demand for alternative meats has dropped drastically.
Many giants in the plant-based industry have also struggled due to factors such as higher prices than traditional meat as well as shoppers’ perception of their products’ taste and texture.
As a result, dropping sales, mass layoffs, and closing factories have plagued the industry.
Beyond Meat, for example, saw a 23.5% revenue decline from foodservice in the first quarter, blaming “weak category demand” and “lower burger sales” to quick-service restaurant customers.
Kevin Hart’s vegan burger chain Hart’s House, launched in 2022, has also taken a hit, with all four of its locations shutting down by last year.
EVOS, a vegan fast-food burger chain, likewise has struggled, closing down its last remaining location in April.
While mounting pressures in the restaurant industry are forcing closures, some successful chains are expanding their footprint.
For example, a restaurant chain “better than McDonald’s” plans to open seven new locations and burst onto the scene in another state.
Meanwhile, an Olive Garden rival has confirmed it will open 30 new locations in 2025.
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