Planta, the upscale vegan restaurant chain known for its stylish interiors and meat-free takes on global cuisine, has filed for Chapter 11 bankruptcy protection. The filing, made Monday in Delaware, marks another blow for the once high-flying plant-based dining sector.
The Miami-based chain and more than 30 affiliated entities are seeking debt protection after years of rapid expansion and mounting financial pressure. According to court documents, Planta lists liabilities between $10 million and $50 million, while claiming assets of less than $100,000.
Founded in 2016, Planta grew quickly by tapping into the rising demand for plant-based alternatives, expanding to 18 locations across major cities in the U.S. and Canada, including New York, Los Angeles, Chicago, Toronto, and several Florida cities. Its menu — featuring items like Korean Chick’n Baos and cauliflower Firecracker Wings — appealed not just to vegans but also to flexitarians drawn to sustainable, health-forward dining.
Revenues reflected that early momentum, climbing from $3.5 million in 2016 to $46 million by 2024. But according to CEO Steven Salm, the pandemic disrupted that trajectory. In court filings, he cited pandemic-era closures and an overreliance on costly third-party delivery platforms as major setbacks. The company also struggled to recover lost traffic in the years that followed, especially as inflation drove food and labor costs higher.
To offset those rising costs, Planta raised menu prices — a move that appears to have backfired by further reducing traffic. Meanwhile, the brand invested heavily in new store openings, adding a dozen locations over three years. That growth, compressed into a short window due to COVID-era delays, became financially unsustainable.
Though Planta has no secured debt, it did raise funding through a convertible note with hedge fund Anchorage Capital Group. After falling behind on lease payments earlier this year, the company opted for bankruptcy protection..
Planta joins a growing list of full-service restaurant operators filing for bankruptcy as inflation, labor shortages, and shifting consumer habits continue to squeeze the industry. Red Lobster, TGI Fridays, and On the Border have all sought restructuring in recent months.
For Planta, the bankruptcy filing may offer a path to stabilization, but it also underscores the challenges of scaling a niche dining concept in a volatile post-pandemic economy.