Taste of Belgium, a Cincinnati-based brunch chain, has filed for bankruptcy after reeling from the lasting effects of COVID and inflation over the past few years.
The company wants to “stabilize the business and ensure long-term sustainability,” according to a statement published by local media outlets.
The brand currently has three locations throughout Cincinnati. At its peak, there were 10 restaurants and a commissary.
Taste of Belgium lists $155,948 in assets and $3.02 million in liabilities.
“This is not about closing restaurants. It is about keeping them open,” CEO and founder Jean-Francois Flechet said in a statement. “Filing for Chapter 11 gives us the protection we need to adapt, stay in business, and continue serving our guests. From a customer standpoint, nothing changes. Our doors are OPEN, and our team is here.”
Flechet said in court documents that the pandemic created a labor shortage that negatively impacted all of his restaurants. The owner lamented the “significant fees” from third-party aggregators and the fact that customers worked from home more and didn’t want to eat out as much.
With hours and capacity restricted for several months, Flechet attempted to use closed restaurant spaces to run takeout-only operations. During this time, he also sought an Economic Injury Disaster Loan from the U.S. Small Business Administration, but has struggled to pay it down.
Matters didn’t improve by 2022 when inflation increased operating expenses and tariffs inflated the costs of ingredients from Europe. By November of that same year, Flechet hired a full-time CFO. But during the executive’s tenure, sales fell, financials “were in disarray,” and debts became delinquent.
After the CFO left, Flechet adjusted operations by closing seven locations, reducing the leadership team, simplifying the menu, and cutting menu prices, according to court documents. While these changes have improved day-to-day performance, it hasn’t been enough to resolve all of the financial issues, hence the move toward bankruptcy.
“While revenue is steadily recovering, the losses from the Covid-19 shutdown and the costs associated with the current loans are too severe to allow Taste of Belgium Rookwood to operate without the present Chapter 11, Subchapter V filing,” Flechet said in court documents.
Flechet, who is Belgian, founded Taste of Belgium in 2007. The business started in the back of a produce store before expanding into full-service locations in Ohio and Northern Kentucky.
