The benefits of eating healthy are numerous and can typically be observed fairly quickly. But most of us have busy lifestyles that don’t make it easy to plan, grocery shop, and meal prep or cook 3 healthy meals per day, every single week. That’s when it’s nice to have healthy fast food options, especially drive-throughs in a car-dependent state like Arizona. Increased focus on health and a growing demand for convenience made it no wonder that Salad And Go exploded in popularity and expanded across Arizona and other states. But fast casual restaurants have tight margins, so market disruptions can have a significant impact on even the most successful chains. While it’s hard to keep track of the headlines in 2026, you may be aware of an illness that gained attention in July. The cyclospora outbreak was traced to iceberg lettuce, a key ingredient in salads. This kept enough customers away that Salad And Go filed a chapter 11 bankruptcy petition in a move to close all of its restaurants and go out of business. The current economy may have you feeling like doing the same, but that simply isn’t an option for individuals with bills to pay. But you may be able to change how much goes to your creditors this month and how much you keep in your bank account by filing for bankruptcy. Learn more with your free consultation today at 602-649-4949 for more information.
What Happened to Salad And Go?
If you notice yourself going out to eat less lately, know that most people in Arizona are experiencing something similar. Having fewer diners doesn’t just mean reduced profits, but can make it more difficult to keep fresh inventory and a wide variety of menu items. And customers aren’t the only ones feeling the effects of a turbulent economy. Increasing gas prices hit restaurants too, which can increase the rest of their expenses across the board. Staffing also gets harder when offered wages don’t match the cost of living. All of these can weaken a restaurant’s defenses against unexpected events like the outbreak of a widespread disease. But while COVID-19 affected almost every single restaurant in business, the cyclospora outbreak had a targeted effect on lettuce and salad-focused restaurants. No one wanted to risk the symptoms of this illness, causing sales at Salad And Go to decline. In fact, sales declined by more than 1% for the month of July 2026.
While 1% may sound like a small number, it becomes huge when scaled for a large company like Salad And Go. And fast casual restaurants have notoriously narrow margins for profitability. For a business that just recently closed dozens of restaurants after a failed expansion, the cyclosporiasis outbreak was the straw that broke the camel’s back. That’s why it only took the chain one more month to declare bankruptcy. But Salad And Go has an undeniably large number of restaurants, all sporting a drive-thru, which can be difficult to obtain permits for new construction. Dutch Bros was first rumored to be purchasing these locations from Salad And Go in a deal worth more than $900 million. But other coffee chains have thrown their names into the ring of potential buyers. The only thing that appears to be certain is that Salad And Go restaurants will soon become drive-through coffee shops, regardless of the brand that wins the bid.
Similar Bankruptcy Filings in Recent Years
If you keep up with business news, you may have noticed many restaurants similar to Salad And Go declaring bankruptcy in the past few years. The market changed drastically during and after the pandemic for a wide variety of reasons. Quality staffing is more difficult, sourcing ingredients is more expensive, and landlords are jacking up the rent. Some restaurants respond by raising prices, which can cause them to lose customers. But if they don’t, they can fall victim to the market pressures that have caused so many competing restaurants around them to crumble. Some similar bankruptcy filings you may have read about recently include:
- Pieology: Pieology was one of the fast-casual restaurants to jump onto the build-your-own-pizza trend. But like many other eateries, Pieology was forced to pivot to delivery and take-out rather than in-restaurant dining during the pandemic. It later sought to upgrade its kitchens, which required significant funding from investors. When they dropped out, Pieology failed to find new funding and declared bankruptcy a few months later.
- Hooters: This controversial chain filed for chapter 11 bankruptcy with more than $300 million in debt despite being such an iconic brand. Part of their bankruptcy was rebranding to a restaurant that dining at won’t result in a man sleeping on the couch. While still operating as a restaurant, its Las Vegas hotel is currently drawing attention for deceptive marketing practices.
- On The Border: This Mexican grill first filed for chapter 11 bankruptcy in 2025, citing many of the same struggles facing the rest of the fast-casual dining industry. Unfortunately, this bankruptcy didn’t discharge enough debt to save the company. On The Border filed for bankruptcy again in 2026, but this time it was a chapter 7 case. It has since closed all of its restaurant locations. Businesses that filed for chapter 7 bankruptcy must shut down unless an investor buys the brand.
- Bar Louie: This is yet another popular chain that filed for bankruptcy twice since the pandemic. Both of these were chapter 11 filings, with the first being in 2020 and the second being in 2025. The chain announced plans to close 13 of its 48 restaurants as part of its bankruptcy plan. This helped it reduce operating costs and focus on its most profitable locations. There are still two Bar Louie restaurant locations in the state of Arizona.
- Red Lobster: This was one of the biggest bankruptcy cases of 2025. It is the perfect example of the type of restaurant that struggles when diners have limited spare funds and only spend on the most affordable and convenient options, or splurge at higher-end establishments. Part of Red Lobster’s bankruptcy plan was to close more than 50 restaurant locations. That helped it survive a low point and come out on the other end of a discharged bankruptcy case.
Chapter 7 and Chapter 13 Bankruptcy for Residents of Arizona
Bankruptcy rates tend to go up when financial issues like an affordability crisis and spiraling debts become more common in society. Business bankruptcy rates also tend to coincide with consumer bankruptcy rates, with employment being a crucial element of most people’s budgets. If you review your monthly expenses and see how much more comfortably you could live if your debts would be cleared, it may be time to consider bankruptcy. Chapter 7 and chapter 13 bankruptcy can both provide debt relief for Arizona households. But one could be far more effective for your based on your unique situation. Don’t feel overwhelmed trying to figure out which chapter is best for you- our team can help you sort that out, free of charge. Start your bankruptcy journey with Atlas Bankruptcy Lawyers today at 602-649-4949 to visit our website for more information.
