World Of Beer Has Filed For Bankruptcy, Here Are The Details

Proving that times are hard for most of the restaurant industry these days, Orlando Weekly reported that World of Beer filed for Chapter 11 bankruptcy on August 2. The chain was founded in 2007 and eventually expanded from its home base in Tampa, Florida to 34 locations in various states. World of Beer cited factors like inflation and pandemic-related decreases in customer visits as reasons for the filing. 

Unlike Chapter 7, which liquidates assets, Chapter 11 reorganizes debt and presents the debtor with a payment plan. Accordingly, president and CEO Paul Avery believes the bankruptcy filing will support "the long-term health and sustainability of WOB Bar & Kitchen." Avery went on to say, "We are confident in our future, backed by a solid plan and a dedicated team committed to delivering exceptional dining experiences." Prior to the filing, World of Beer also shuttered 14 locations over the last year, possibly casualties of restaurant prices moving past grocery costs.

Many of the problematic factors that contributed to World of Beer's bankruptcy filing have also affected other dining establishments. For instance, Red Lobster's shuttering of numerous locations led to questions about the chain's demise, which illustrates the industry is challenging for even well-established brands. However, an update to World of Beer's franchising process in 2013 could have also played a role. 

World of Beer proved quite attractive to franchisees at its inception, who became accustomed to running locations according to their individual preferences. When attempts were made to institute a uniform operations program, many of these franchisees protested, which led to costly legal disputes that continued to cause ill effects long after court cases ceased. Issues were compounded by the pandemic, and World of Beer was unable to replicate its early success.

It's worth noting that sales of craft beer have been on the downswing due to changing consumer alcohol preferences, which could also explain why World of Beer has been unable to boost its sales figures. While the restaurant has remained upbeat about life after bankruptcy, it's possible that World of Beer could go the way of other chain restaurants that may disappear in 2024.