True Food Kitchen Raised $100 Million. Bankruptcy Exposed the Cost Problem Money Couldn’t Fix
True Food Kitchen is closing 12 restaurants after filing for bankruptcy. Here’s what its restructuring means for the 34 locations staying open.
Oprah Winfrey-backed health-focused restaurant chain True Food Kitchen has filed for Chapter 11 bankruptcy protection, citing management turnover and strategy shifts, as well as the impact of the COVID-19 pandemic, according to court documents. The Arizona-based chain has closed 12 of its 34 remaining locations, with the rest continuing to operate normally.
Winfrey, a co-founder and investor in the company since 2018, has since been removed from the board, though she remains a minority shareholder. The bankruptcy filing highlights the challenges True Food Kitchen has faced, including frequent changes in leadership, unsuccessful expansions, and struggles with fluctuating market forces and demographics.
Despite these obstacles, some of the company's outlets have remained profitable. CEO Jeff Chandler expressed confidence that the bankruptcy filing will help the business refocus on its core mission of providing healthy, craveable food and exceptional hospitality.
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