Dive Brief:
- Applebee’s franchisee Neighborhood Restaurant Partners Florida filed for Chapter 11 bankruptcy protections on Tuesday in United States Bankruptcy Court in the Northern District of Georgia, according to records.
- The operator closed nine restaurants in 2025 and five during the first quarter of 2026, leaving it with 53 units across Florida, Georgia and Alabama, according to Katie Goodman, chief restructuring officer for the operator and managing partner of GGG Partners, a financial advisory firm.
- NRPF attempted to find a buyer for its locations last year, but was unable to secure one over several months on the market, despite garnering interest from 17 groups.
Dive Insight:
Franchisor Applebee’s plans to acquire the remaining restaurants, leases and agreements, per the filing. The two companies attempted to negotiate an arrangement to facilitate an out-of-court transaction, but parties had not completed the deal by the Tuesday petition date. Continued financial pressures and cash flow restraints forced NRPF to file for bankruptcy, Goodman wrote.
NRPF was originally formed to acquire 50 Applebee’s restaurants in Tampa and Orlando, Florida, markets in 2012. A sister company, NRPF 2, acquired 15 more restaurants that year in Florida, Georgia and Alabama.
The company expanded between 2013 and 2015 through new development and organic growth. EBITDA grew from $13 million to $20 million in 2015. However, at the end of that year, sales began to soften and the operator saw ups and downs thanks to unsuccessful strategies and promotions, followed by the COVID-19 pandemic and inflation.
“While a number of the stores are profitable, the Debtors’ combined EBITDA was negative during the past year,” Goodman wrote. “Inflationary pressure has continued to increase the Debtors’ operating expenses, while concomitantly impacting the Debtors’ core customer base, thereby resulting in less restaurant visits and lower average tickets.”
NRPF said it has liabilities between $10 million and $50 million and estimated assets of $0 to $50,000, in its Chapter 11 filing.
Applebee’s will continue to support NRPF during the process and will set up a future agreement on a stalking horse asset purchase agreement. The debtors said they hope to complete that process and close a sale by mid-May, per the filing.
A number of other restaurant franchisees have filed for bankruptcy so far this year, including a 136-unit Popeyes franchisee, a 43-unit Subway owner and a 33-unit Freddy’s Frozen Custard & Steakburgers operator, with some citing economic conditions like inflation as a factor. An 11-unit Firehouse Subs franchisee also declared bankruptcy this year following development delays.
Applebee’s has been working to improve unit-level performance across its system through dual-branded openings and remodels and improvements in the look and feel of its company-owned portfolio, Dine Brands CEO John Peyton said during a February earnings call. These initiatives have improved trust among guests and are starting to improve unit-level performance with positive traffic trends and higher guest engagement.
Applebee’s comparable sales were up 1.3% during 2025 compared to negative 4.2% in 2024, but comps fell to negative 0.4% during Q4 2025, he said.
