The days may be numbered for “scattered, covered and smothered” hash browns at Waffle House. The iconic roadside grill’s biggest franchisee has filed for bankruptcy protection.
Northlake Foods Inc. of Brandon, which operates 146 Waffle Houses in Florida, Georgia and Virginia, filed for Chapter 11 bankruptcy protection in mid-September. Chapter 11 allows a company to reorganize its finances while protected from its creditors.
According to the bankruptcy filing, 90 of Northlake Foods’ Waffle House locations are in Florida, but it wasn’t immediately clear whether it operates any local restaurants.
The company filed for bankruptcy because Waffle House Inc. of Norcross, Ga., was threatening to terminate the franchise agreement that gives it the right to operate the restaurants, the bankruptcy filing says.
Northlake has other problems, too, according to the filing. The company is short of cash, has suffered from declining sales and has seen its costs rise because of increases in the minimum wage.
It lists assets of $10 million to $50 million and liabilities in the same range. Read more.
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Franchisee Of 146 Waffle Houses Files For Bankruptcy
November 26, 2008 by Mark | 1 Comment
In Franchisees, Franchises, Negatives and/or Positives, News, Restaurants
Un Loco on May 7th, 2009 at 1:13 pm
A lot of people are using the excuses that the economic is bad and rising cost and min wages etc. All these are just excuses. Look at Apple Bee- High price and high cost. Waffle House should be doing double the volume of business if the operation is running correctly because it has the best location, low price and quick service. I visit a Waffle House near by a few months ago. They were out of 5 items I ordered- no straw, no ketchup, no potatoes etc. Oh and only 2 eggs left. I asked to see the manager and she won’t come out. Later she came out as I was leaving and argued with me. I then filed an internet complaint and the lady directed me to a Franchisees locally. I emailed them- no answer. Called them and left a message- no answer. If they would do a better job in their operation, I am 100% sure they can be great. I wish I can have a few run down Waffle Houses to operate, so I can show them how easy it is to be the best. This is no rocket science to run a restaurant. Sell what you advertise and service the guest well. Pay low and you get bums. I know I can turn around a Franchise if the opportunity comes along. Operation is the key.