According to the Los Angeles Times, Cerca Trova Restaurant Group, a major Outback Steakhouse franchisee operating 61 locations, filed for Chapter 11 bankruptcy protection. The Times reported the company cited mounting food and labor costs, declining customer traffic, and hundreds of millions of dollars in debt.
What the CEO told the court
In a court filing quoted by The Western Journal, CEO David Goronkin wrote: “By 2026, the pressures on the business had converged. Guest traffic and earnings continued to decline, while food, labor, and other production costs continued to rise.”
California wage context
The Western Journal reported that more than half of Cerca Trova’s employees work in California, where the general minimum wage increased to $16.90 an hour at the beginning of 2026. The outlet also noted that fast food employers are expected to face a $20 hourly minimum, though Outback is not classified as a fast-food establishment under that law, per the New York Post.
Scale of the restructuring
The Los Angeles Times reported that Cerca Trova once operated 99 Outback restaurants and now runs 61. The Times said the company is seeking bankruptcy protection while proposing a $26.3 million sale of its assets to Bloomin’ Brands, Outback’s parent company.
While The Western Journal emphasized that multiple pressures—not just labor costs—contributed to the filing, the court record excerpt and reporting cited above place rising expenses and falling traffic at the center of the company’s case for Chapter 11.
