Big Changes at Two Famed Restaurant Brands as Pandemic Hits Hard


Photo courtesy of Dunkin’ Brands Inc.

Dunkin’ Donuts will sell itself to a private equity firm and Friendly’s announced it will file for Chapter 11 bankruptcy as the pandemic continues to take a toll on American retail chains.

Friendly’s Restaurants, which runs the restaurants under the parent company FIC Restaurants Inc., will sell substantially all of its assets to the restaurant company, Amici Partners Group.

All 130 of its locations will remain open while in restructures under Chapter 11 bankruptcy protection, the company said late Sunday.

Friendly’s Restaurants, like most other chains that have stumbled this year, had been struggling. The Wilbraham company filed for bankruptcy protection in 2011 as well.

The pandemic has hit the restaurant sector hard, particularly those that rely on people in their dining rooms. At least 10 chains have filed for bankruptcy protection since the pandemic began this year.

Others filing for protection this year include the U.S. arm of Le Pain Quotidien, CEC Entertainment, the parent company of Chuck E. Cheese, California Pizza Kitchen, Sizzler and Ruby Tuesday.

Despite the wide popularity of its products, the pandemic has not been kind to Dunkin’ Donuts’ fortunes, either. Canton-based Dunkin’ Brands’ systemwide sales fell 1.3 percent in the third quarter and tumbled 21 percent in the second quarter. Franchisees closed 553 restaurants permanently.

By selling itself to Inspire Brands Inc. for $11.3 billion, the company will have more leeway to restructure as the pandemic’s longer-term impacts become more apparent.

Inspire is part of the private equity company Roark Capital Group, also based in Atlanta. Roark also backs Focus Brands – the owner of Auntie Anne’s Pretzels and Cinnabon – and CKE Restaurants, which owns the Carl’s Jr. and Hardee’s burger chains.

The deal will give Inspire a spot in the breakfast category, which was the fastest-growing segment of the restaurant industry before the pandemic hit.