The current restaurant environment has been so treacherous that a chain can go from expanding to Chapter 11 bankruptcy in what seems like a matter of days.
Because the industry operates on such razor-thin margins, sometimes one wrong expansion or taking too big a risk can push a company from success into financial ruin.
Related: Beloved local grocer closes last two locations forever after 80 years
It happens all the time. A company takes on too much financial risk and a new location runs over-budget. Or, perhaps that new location opens and under-performs.
The restaurant business is very unforgiving, and even a tiny misstep can bring disaster. That has been illustrated by what has happened to Plate Restaurant Group, which just a year ago was celebrating the expansion of its Plate Pizzeria concept.
💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵
“We are going to be as authentic as possible. We are purchasing our ovens from Italy, certified in Napoli. We will make the crust by hand and import as many ingredients as we can, following the standards set by the Associazione Verace Pizza Napoletana. Traditional flavors for the pizza and gelato, and we will make gelato in-house,” owner Christian Joseph told Kansas City Mag a little over a year ago.
The new location was meant to be casual with a walk-up window and local delivery.
“Geared toward families and priced as such,” Joseph said.
Image source: Pixabay
Plate Restaurant Group has a mission
Plate Pizzeria was an extension of the Plate Restaurant Group's other two full-restaurant concepts. The company shared its vision on its website.
“At Plate Restaurant Group, our foundation is built upon a profound dedication to our guests. As the parent company overseeing Plate Italiano Moderno, Plate Pizzeria and BOCCONE brands, we understand that every decision we make is driven by the desire to provide exceptional dining experiences,” it shared on its LinkedIn page.
The company has been around for more than a decade, and its signature restaurant offers upscale Italian.
“Founded in 2014, Plate Italiano Moderno presents a sophisticated dining affair. Committed to delivering exceptional guest experiences and unmatched hospitality, Plate's culinary and hospitality teams strive to create an unforgettable dining experience in Kansas City. The menu, a harmonious blend of traditional and modern Italian flavors, showcases meticulously crafted house-made pastas, freshly prepared entrees, succulent seafood, and the finest quality ingredients,” it posted on its website.
More Food News:
- Burger King menu adds wild kids' meal toys parents will want too
- McDonald’s puts popular Pokemon promotion back on the menu
- Starbucks' huge new rival opens first US stores
The menu was carefully crafted by its owner, who has deep restaurant experience.
“Owner and Operator Christian Joseph honed his culinary skills and developed a deep love for Italian cuisine under the mentorship of the renowned restaurateur Valter Nassi from the charming town of Monte San Savino, Tuscany. His Italian roots are firmly planted in Frosinone, Lazio, tracing back to his grandfather, Constantino ‘Stello' Lucido, who embarked on a transformative journey to New York, establishing a new life in the United States,” according to the website.
Plate Restaurant Group files Chapter 11 bankruptcy
It's depressing how often a restaurant group can go from developing chain to Chapter 11 bankruptcy.
Plate Restaurant Group LLC, a Kansas City-based restaurant business, has filed for Chapter 11 bankruptcy protection in the District of Kansas. The company, which operates in the food services and drinking places industry, reported assets of less than $50,000 and liabilities between $500,001 and $1 million.
The debtor has elected to proceed under Subchapter V of Chapter 11 as a small business debtor.
Major creditors include Performance Food Service ($122,902), Bradley Construction ($63,000), and American Express ($30,000), with between 50-99 total creditors listed.
Related: Iconic convenience store closing down all locations
The company's principal place of business is located in Kansas City, Missouri. Phillips & Thomas LLC is serving as bankruptcy counsel for the proceedings.
All three locations appear to still be operating. The company's Facebook page does not mention the Chapter 11 bankruptcy filing and it's still promoting future events.
