Top 10 Bankrupt Fast Food Chains That Made a Comeback

#10: Hot 'n Now

Michigan businessman William Van Domelen was no stranger to fast food, working as a Burger Chef franchisee and opening the state’s first Wendy’s. In 1984, Domelen founded his own fast food chain: Hot 'n Now, initially selling burgers for only 39 cents. By 1990, Hot 'n Now had over 100 locations across fifteen states, being acquired by PepsiCo. Although Hot 'n Now was no longer small fry, the new management clashed with franchisees, spelling its downfall. Around 80 Hot 'n Nows closed by 1995. In just under a decade, it’d declare Chapter 11 bankruptcy, getting sold to STEN Corporation. While Hot 'n Nows wouldn’t make a huge comeback, the brand survived. As of late 2025, two Michigan locations exist, with hopes to open more.

#9: Clover Food Lab

When people think of fast food, burgers, chicken, and other meat products come to mind. While many chains have a vegetarian option, Clover Food Lab dedicates its menu to veggie lovers. In 2008, MIT graduate Ayr Muir founded the brand at his alma mater with a small white food truck. Emphasizing organic ingredients and an environmentally-friendly approach, Clover Food Lab expanded with additional food trucks and restaurant locations. Even those who aren’t vegetarians have been surprised by the food’s quality. Between the pandemic and banking crisis, though, Clover Food Lab faced the same hardships as many other businesses. The Massachusetts-based chain filed for bankruptcy in 2023, but it bounced back by the following year in what chief marketing officer Kiernan Schmitt called a “brand refresh.”

#8: Krystal

Introduced in 1932, one might describe Krystal as the Southern cousin of White Castle, both specializing in sliders. Co-founder Rody Davenport notably visited a White Castle in Chicago before opening the first Krystal in Tennessee. While Krystal has been a Southeastern institution for decades, it’s faced multiple bankruptcies. One came in 1995, when nearly 6,000 former employees sued for alleged unpaid overtime. Krystal settled for $13 million, and Port Royal Holdings bought the company for $108 million. Argonne Capital Group then acquired the chain until 2020, when Krystal endured another bankruptcy, being almost $100 million in debt. Fortress Investment Group and Golden Child Holdings threw a lifeline. As of 2023, SPB Hospitality owns Krystal, which has continued to grow with an expansion to Puerto Rico.

#7: Roy Rogers Restaurants

When Marriott Corporation acquired RoBee’s House of Beef in 1968, the name was deemed too similar to Arby’s. Fortunately, a board member knew singer Roy Rogers’ agent. By the decade’s end, there were over 100 Roy Rogers Restaurants, with plans to construct 700-870 overall. Leadership was perhaps overly ambitious, as many franchises fell short. Most significantly, a Texas Roy Rogers filed for bankruptcy, having effects that left the whole company struggling to show a profit. Regardless, Roy Rogers continued its expansion, eventually reaching almost 600 stores. With new owner Imasco converting many locations into Hardee’s, Roy Rogers saw a decline during the 90s, but the brand didn’t die. Today, Roy Rogers has 38 locations, which is the same number of sites it had in 1968.

#6: Kenny Rogers Roasters

If we had a nickel for every fast-food chain based around a country music star whose surname is Rogers, we’d have… two nickels, which isn’t a lot, but weird it happened twice, right? There’s yet another parallel between Roy Rogers and Kenny Rogers. In 1998, the chicken chain filed for Chapter 11. And no, it wasn’t because of Kramer’s protesting. Aside from having to compete with established names like KFC and other newcomers like Boston Market - then-Boston Chicken - Kenny Rogers faced a lawsuit from Cluckers, standing accused of copying their menu. Nathan's Famous, Inc. would buy Kenny Rogers Roasters, later selling to the Malaysian-based Berjaya Corporation. While its final U.S. location closed in 2011, Kenny Rogers is still roasting worldwide with over 150 spots.

#5: Cicis Pizza

Not many fast food joints specialize in Italian cuisine, but with its buffet style, Cicis is ideal for those seeking a quick pizza fix. While the Texas-based chain hit the scene in 1985, it peaked in popularity during the early 2000s. In four years, Cicis went from 363 locations to over 500, becoming America’s fast-growing pizza brand. Although the all-you-can-eat buffet made Cicis stand out, it’s also what hurt the chain amid the pandemic. Unlike other pizza places, Cicis had limited delivery options, cutting off much of its revenue. Accumulating $82 million in debt, Cicis filed for bankruptcy, with D&G Investors acquiring the company. It only took a couple of months for Cicis to move past its financial woes, with 274 locations currently operating.

#4: Fuddruckers

Another chain that originated from Texas, Fuddruckers grew to nearly 150 locations between its opening in 1979 and 1988, when founder Philip J. Romano left the company. Eventually falling under Magic Brands’ ownership, Fuddruckers was as big as its burgers, but nothing could outweigh the economic crisis that arose in 2008. Magic Brands sought Chapter 11 protection in 2010, closing more than 20 Fuddruckers stores. Thankfully, bankruptcy didn’t fry the burger chain. The same year, Luby’s purchased Fuddruckers for over $60 million. With the pandemic taking its toll a decade later, Luby’s sold Fuddruckers to Black Titan Franchise Systems for under $20 million. This move would keep Fuddruckers going, now estimated to have somewhere between 40 and 60 locations in the U.S.

#3: Long John Silver’s

Be honest. Do you associate the name Long John Silver more with the Robert Louis Stevenson book or the fast seafood restaurant? Either way, the chain could’ve used some buried treasure in 1998. Riding the high waves of the 70s and 80s, at one point exceeding 1,000 locations, Long John Silver’s hit rough waters during the 90s. Not only were other chains adding fish to their menus, but Long John Silver’s reputation for deep-fried foods caused health-conscious consumers to abandon ship. With parent company Jerrico Inc. in debt, they took the Chapter 11 route. A&W Restaurants threw a life preserver. Since then, Long John Silver’s has seen several different captains, but the boat remains afloat with almost 500 stores.

#2: Quiznos

At its height, Quiznos rivaled only Subway in the sub sandwich market. With nearly 5,000 locations in 2013, it seemed little could sink this sub empire. Just because Quiznos was big didn’t mean they were profitable, however. To compete with Subway’s $5 footlongs, Quiznos started offering deals that frustrated franchisees, some of whom rejected coupons. Franchisees also took Quiznos to court for various reasons. Coupled with high food costs and debt, Quiznos filed for Chapter 11 in 2014. While Quiznos emerged from bankruptcy that same year, it inevitably downsized. Over the next decade, Quiznos went from thousands of locations to a few hundred. Quiznos might not be as big as it was, but we’re glad the chain that gave us Spongmonkeys is still alive.

#1: Sbarro

Remember when you couldn’t walk through a food court mall without encountering a Sbarro? For many, it was their first taste of New York pizza, or at least the closest they could get. In 2011, Sbarro was America’s fifth-largest pizza chain. Of course, the size of a company doesn’t always reflect its finances. Sbarro endured its first bankruptcy in 2011, with another following only a few years later. While various factors contributed to the company’s massive debt, including the Great Recession, it’s probably not a coincidence that Sbarro struggled around the same time that malls started going out of style. Through rebranding and expanding to locations beyond malls, though, Sbarro has made a comeback with more than ​​600 spots where you can grab a slice.

Which fast food chain do you hope makes a comeback? Let us know in the comments.