The breakfast dining sector has faced financial challenges in 2026, leading dining chains to close locations or, in some cases, file for bankruptcy protection.
Franchisees of iconic chain Denny’s, such as DBJ US Corp. in Miami Beach, Fla., have been among the restaurant operators who have filed for bankruptcy.
And smaller chains, such as Sarabeth’s in New York City and Breakfast Republic in San Diego have closed several of their locations to cut costs to stay in business.
Buttermilk Eatery files for bankruptcy
And now the owner of breakfast and brunch dining chain Buttermilk Eatery has filed for Chapter 11 protection to reorganize its business, facing a lawsuit.
Asani Restaurant Group LLC filed its petition in the U.S. Bankruptcy Court for the Middle District of Florida on Aug. 31, listing over $75,000 in assets and over $407,000 in debts.
The debtor did not give a specific reason for filing for bankruptcy in its petition. A company spokesperson was not immediately available for comment.
The restaurant chain, founded in January 2023, serves breakfast, brunch, and lunch at its North St. Petersburg and Pinellas Park, Fla., locations, and has plans to open a third location in St. Petersburg’s Grand Central District in summer 2026.
Buttermilk Eatery competes against the iconic Denny’s chain, which operates a location in St. Petersburg.
The debtor has not commented on whether it will continue with plans to open the thirds location.
Buttermilk Eatery opened its first location on Roosevelt Blvd. North in St. Petersburg in 2023 and its second location on US Highway 19N in Pinellas Park in early 2024. Both locations feature online ordering and robot food runners.
Chain plans location opening
The restaurant chain revealed in May 2026 that it planned to take over the former Urban Brew & BBQ location at 2601 Central Ave. in St. Petersburg, which closed in September 2025 after 12 years of operating, St. Pete Rising reported.
The new restaurant would include 1,400 square feet of indoor space and a 3,000 square foot covered patio dining area. Diners could order through traditional table service or from their phones by scanning a QR code at their table.
Creditor files lawsuit
Asani Restaurant Group creditor MGM Investment Properties Inc. filed a lawsuit against the restaurant owner on Jan. 8, 2026, seeking payment for kitchen equipment it allegedly provided Asani in November 2022, UniCourt reported. All litigation is subject to an automatic stay while the bankruptcy case proceeds.
The St. Petersburg, Fla.-based restaurant chain’s largest unsecured creditors include Spartan Capital, owed over $178,000; Toast Capital LLC, owed over $145,000; LQ Commercial Property Management, owed over $53,000; Bear Robotics, owed $30,000; and Chase Card Member Services, owed over $29,000, according to the Chapter 11 petition.
A breakfast chain competitor of Buttermilk Eatery also filed for bankruptcy in Florida.
Another Florida restaurant bankruptcy
A St. Petersburg-based franchisee of iconic breakfast restaurant chain Village Inn filed for Chapter 11 bankruptcy protection on behalf of three Florida locations, as the restaurant operator’s revenue had fallen significantly over the last two years.
The 68-year-old restaurant chain’s franchisee filed its petitions for Village Inn locations in Land O Lakes, Brandon, and Zephyrhills, Fla., in the U.S. Bankruptcy Court for the Middle District of Florida on June 10, according to BKAlerts.
A manager of the Land O Lakes Village Inn location told TheStreet that all three locations in the bankruptcy are operating as normal with no plans for closures.
The franchisee managing member Lloyd Lehan IV did not respond to a request for comment.
Village Inn Restaurants launched in 1958 in Denver and currently has 109 locations in 19 states, according to its website.
Related: Firearms retailer files Chapter 11 bankruptcy as gun sales drop
