Major Steakhouse Chain's Largest Franchisee Files For Bankruptcy As Debt Explodes The casual dining industry has suffered another major blow following the bankruptcy filing of Outback Steakhouse's largest U.S. franchisee after years of soaring costs, declining customer traffic, and mounting debt.
San Diego-based Out West Restaurant Group, also known as Cerca Trova Restaurant Group, filed for Chapter 11 bankruptcy protection Monday in Delaware, putting 61 restaurants across five Western states into bankruptcy proceedings. The company's debt has exploded from $269 million in 2020 to approximately $449 million in 2026 , according to the Los Angeles Times .
"Guest traffic and earnings continued to decline, while food, labor, and other production costs continued to rise," CEO David Goronkin said , according to court filings. California's rising minimum wages have been a major problem, with more than half the company's employees working in the Golden State.