Razzoo’s Cajun Cafe goes bankrupt citing competitive pressures

Core Insights - Razzoo's Cajun Cafe, a casual dining chain, filed for Chapter 11 bankruptcy due to declining sales and liquidity issues exacerbated by heavy competition and shifts in consumer preferences [9] - The company has been unable to service its lease and debt obligations despite implementing cost-saving measures [8] Industry Trends - Consumers are increasingly opting for fast casual and quick service restaurants due to inflation and higher interest rates, impacting casual dining chains like Razzoo's [3] - Casual dining brands such as Chili's, Olive Garden, and Applebee's have recently seen positive traffic, while others like Denny's and IHOP continue to experience sales declines [5] Company Performance - Razzoo's sales typically peak during crawfish season, but this year saw a decrease in sales due to lower retail prices and earlier season start compared to previous years [6] - The company has long-term lease obligations totaling around $650,000 per month, which have become burdensome due to declining sales [7] - Razzoo's has closed four underperforming locations to reduce lease expenses by approximately $110,000, alongside other cost-saving measures [7]