Is Golden Corral Going Out of Business?

Is Golden Corral Going Out of Business?

Golden Corral, the popular American buffet restaurant chain, has been a favorite dining destination for families and food enthusiasts for several decades.

However, recent developments and challenges have raised concerns among loyal patrons and industry observers about the future of the beloved restaurant.

But Golden Corral has been in the news for a while. The same thing happened because Golden Corral closed some of its locations.

People even started to think that Golden Corral was out of business and would close soon.

But the question still stands: do these guesses have any truth to them? Is there a problem at Golden Corral? Is Golden Corral closed forever?

We put together this piece so you can see if these ideas are true.

So make sure you read until the end to learn more about how bad things are at Golden Corral.

Is Golden Corral Going Out Of Business in 2024?

Golden Corral is an American restaurant company with a family-style atmosphere. They serve grilled food, hot and cold dishes, salads, desserts, and more.

The restaurant company started in Fayetteville, North Carolina, in 1973. Since then, it has grown to have more than 500 locations all over the United States. According to how businesses are valued today, Golden Corral will stay in business.

But because of the pandemic, the company had to close some of its stores for good.

Platinum Corral, which was Golden Corral’s second-largest partner, filed for Chapter 11 bankruptcy in 2022 because the pandemic caused their sales to drop.

Platinum Corral has closed 16 of the 28 places it used to have. Some of the chain’s biggest partners have also closed. The 1069 Restaurant Group, which had 33 locations, filed for Chapter 11 bankruptcy in October 2022.

Golden Corral has tried to make its business plan more diverse than just self-service on-site.

Some of the chain’s stores have returned with new service models, and the company plans to do the same with 18 more by the end of 2024.

Even though the company says it is reopening more locations every week, many of the reported closures may be permanent for the nearly 50-year-old business.

The CEO of Platinum Corral is still hopeful that the food chain won’t have to close any more locations, but the pandemic has made things especially hard for the chain.

Is Golden Corral Permanently Closed?

Which Golden Corral locations have been shut down for good? This year, some Golden Corrals have shut down for good for different reasons. In Grand Rapids, Michigan, a building was torn down to make room for a new Chick-fil-A.

Another store in Alton, Illinois, closed for at least four months without warning, which left employees confused and upset.

Due to the pandemic, Golden Corral had to close some of its sites, and the buffet‘s future was already uncertain.

On the other hand, sales at Golden Corral have gone up a lot this year. In the first six weeks of 2024, same-store sales went up 37%.

Post-pandemic Golden Corral situation

We want to make something clear: Golden Corral is not going out of business, and its sales have gone up since last year.

Even though the COVID-19 pandemic forced some restaurants to close for a long time, the chain has reopened some and is seeing a big jump in sales in 2024, with same-store sales up 37% in the first six weeks of the year.

But the pandemic forced Golden Corral to close some stores, and two of its biggest franchisees filing for bankruptcy forced the company to close dozens more.

In the same way, some Golden Corral restaurants have closed for good this year because sales dropped during the pandemic.

Golden Corral stays in business despite this, and the chain is doing well in 2024.

Reasons behind Golden Corral’s Filing for Bankruptcy

Because COVID had such a big effect, Golden Corral’s biggest partner, 1069 Restaurant Group, went bankrupt.

The Florida-based business is $49.7 million in debt. It runs 33 locations in Orlando and Atlanta.

Another Golden Corral franchisee, Platinum Corral, filed for Chapter 11 bankruptcy protection after closing more than half of its stores because the pandemic caused sales to drop.

The statement says that Platinum’s debts are less than $49.4 million. It is thought to be the second-largest franchisee in the Golden Corral chain.

Due to the pandemic, Golden Corral closed all 35 of its 490 company-run stores at first.

Problems that Golden Corral had that May have Caused it to Go Out of Business

One of the hardest things for Golden Corral to deal with is the competition from other food chains.

In the United States, other buffet-style restaurant groups like Hometown Buffet and Old Country Buffet offer similar dining experiences.

Golden Corral has to keep coming up with new ideas and doing things differently to stay ahead of the competition. Golden Corral also has to deal with changed customer tastes and preferences.

As people become more health-conscious, they may be less likely to go to buffet-style restaurants that serve foods with a lot of calories.

Golden Corral has responded to this challenge by adding fresh fruits and vegetables and other healthy choices to their menu.

How the Pandemic Affected the Golden Corral Business

The pandemic had a big effect on Golden Corral’s business. The chain had to close or limit its dining service so much that its very survival was in danger.

In the early days of the pandemic, about 125 Golden Corral Locations had to close.

But the chain’s CEO, Lance Trenary, explained everything Golden Corral did to keep the brand alive, including changes to the operators, a focus on more entrees, and trials with things like alcohol and even drive-thru service.

All of Golden Corral’s strategies for dealing with pandemics depended heavily on the help of franchisees.

The leaders of Golden Corral spent many hours talking with state health officials, health departments, secretaries of commerce, and governors to make sure they knew that touchable and shareable services were not a COVID spreader.

Even though there were problems, Golden Corral has made a comeback and is back to where it was before the pandemic. In 2021, its sales will be 3% to 5% higher than they were before the pandemic.

The brand’s main innovation project is to improve its brand and make it easier for more people to buy it.

Lance Trenary, President and CEO of Golden Corral, says that the pandemic will have a permanent effect on the way the company does business.

Golden Corral Stores that Were Closed During the Pandemic

A recent study by FSR magazine found that in the early days of the pandemic, Golden Corral had to close about 125 of its restaurants.

But the chain has since reopened some of these stores with new ways of doing business, and plans are already in place to restart 18 more by the end of the year.

In October 2022, a 12-year-old Golden Corral in Michigan was torn down to make room for a new Chik-Fil-A. Other locations of the business have also closed for good.

Even with these closings, sources say that Golden Corral still has 397 locations.

How many Golden Corral Stores did they Reopen after the Pandemic?

Recent news stories say that some of Golden Corral’s restaurants have reopened since the plague.

Six places have reopened with new ways of doing business, and 18 more are set to do the same by the end of the year.

One Golden Corral in Anderson, Indiana, has reopened after being closed for more than six months because of the pandemic. During the pandemic, the number of customers stopped coming in.

But this year, some Golden Corral sites have shut down for good.

Conclusion

Golden Corral, an iconic American buffet restaurant chain, has faced its share of challenges over the years. Despite speculations and rumors about its financial health, Golden Corral remains operational and committed to delivering a memorable dining experience to its customers.

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