The restaurant industry is reeling in 2024, as economic pressures under the Biden administration push yet another business to the brink. Rōti Modern Mediterranean, a popular Chicago-based chain known for its fresh, Mediterranean-inspired fast-casual dining, has filed for Chapter 11 bankruptcy. This move is a clear indicator of the mounting challenges facing small and mid-sized businesses across the country.

Founded in 2006, Rōti had successfully expanded to 19 locations across three states and Washington, D.C. However, like many small chains, it has been hit hard by the current economic climate. Inflation, rising operational costs, and a consumer spending downturn have all taken their toll, forcing the company to make the difficult decision to seek bankruptcy protection.

Rōti’s CEO, Justin Seamonds, was candid about the situation: “After careful consideration, filing for bankruptcy protection was the best way to address our challenges — including financial performance, higher costs, mixed location performance, and tough market conditions.” His statement highlights the specific hurdles the company has faced, especially the impact of the COVID pandemic on its urban locations, where 50% of its restaurants are based.

Yet, the pandemic is only part of the story. The real issue lies in the broader economic landscape that American families and businesses are navigating under the current administration. With inflation continuing to erode household budgets, dining out has become a luxury that many can no longer afford. As consumers tighten their belts, restaurants like Rōti are feeling the pinch.

But Rōti is not throwing in the towel just yet. The company plans to use Chapter 11 to restructure its finances, seek new investors or buyers, and keep its current locations open. They are committed to continuing to offer their full menu, catering services, and loyalty programs, hoping that a leaner, more focused operation can weather the storm.

Unfortunately, Rōti’s story is not unique. The restaurant industry has seen a wave of bankruptcies in 2024, with both large and small chains struggling to stay afloat. Well-known names like Red Lobster, Rubio’s, and Tijuana Flats have also filed for Chapter 11, alongside smaller chains such as Tender Greens, World of Beer, and Oberweis Dairy. Even franchisees of big brands like Burger King, Subway, and Arby’s are not immune, with several operators seeking bankruptcy protection as well.

These bankruptcies have real consequences. They mean job losses, shuttered businesses, and economic pain for communities across the country. Suppliers, landlords, and local economies that depend on these restaurants are also feeling the strain, further amplifying the negative impact of the current economic policies.

The struggles of Rōti and its peers serve as a stark reminder of the real-world consequences of the Biden administration’s economic agenda. As businesses close their doors and workers lose their jobs, it’s clear that the road ahead is going to be tough for the restaurant industry—and for the American economy as a whole.