Restaurants & Hospitality

The restaurant industry is a cornerstone of the service economy, yet it operates on some of the thinnest margins in business. Today, operators face a “perfect storm” of challenges: persistent food inflation, rising labor costs, and a consumer base that is increasingly price conscious. Whether you are an independent local favorite or a multi-unit franchisee, maintaining a viable capital structure requires constant adaptation and proactive financial management.

Gartland Thacker DelCotto PLLC provides sophisticated legal intervention for restaurant owners and hospitality groups. We understand that in this industry, timing is everything—from meeting payroll to negotiating with landlords. We provide the strategic framework for out-of-court workouts or Chapter 11 reorganizations, allowing businesses to stabilize operations and protect their brand equity. If the economics require, we assist owners in determining the most efficient methods to close and cease operations. 

Our team has deep experience in the specialized issues that define restaurant restructurings and closures, including:

• Lease & Real Estate Optimization – We assist in the assumption, rejection, or assignment of leases to prune underperforming locations and negotiate modifications that align rent with current revenue reality.
• Franchise & Royalty Disputes – We navigate complex relationships with franchisors, addressing disputes over franchise fees, standards of identity, and the terms of the franchise agreement.
• Supply Chain & PACA Claims – We review the intricacies of the Perishable Agricultural Commodities Act (PACA) claimants, protecting the rights of both buyers and sellers of fresh produce in a distressed environment, including any priority disputes with other secured creditors. 
• Revenue Cycle & Tax Compliance – Our Firm assists in addressing critical payroll obligations and sales tax claims, which often become the first signs of financial distress.
• Customer Programs & Intellectual Property – We handle the legal treatment of gift cards, loyalty programs, and brand assets during a restructuring or 363 sale to preserve customer goodwill.
• Equipment Financing & “True Lease” Analysis – We analyze high-value kitchen and POS equipment contracts and leases to determine their priority and impact on any sale or reorganization plan.

Gartland Thacker DelCotto’s experience in the restaurant and hospitality sector allows us to guide clients through high-stakes transitions and protect their interests in a complex, multi-party environment. To discuss your specific needs, call us today at 855-649-8289 or email our team to schedule a consultation.