Things in the fast-food industry have gotten so rough that one of the biggest Popeyes franchisees just filed for bankruptcy.
Sailormen Inc., a Miami-based company that runs more than 130 Popeyes locations across Florida and Georgia, recently filed for Chapter 11 protection in the Southern District of Florida. The filing allows Sailormen to reorganize roughly $129 million in debt while ensuring that the restaurants are kept open.
Court documents reveal that the business has been faced with a multitude of issues that just kept piling on. The aftermath of COVID-19, increasing ingredients, supplies, and labor costs, rising interest rates, and a labor market that stayed painfully short all seem to have contributed.
Not only did these factors disrupt operations, it also made the company’s existing debt load harder to manage. Sailormen is now working with lenders to renegotiate terms and stabilize the business so it can continue operating as a franchisee.
More Operators Feeling the Squeeze
Popeyes Louisiana Kitchen is owned by Restaurant Brands International, which acquired the brand back in 2017. Most Popeyes restaurants, though, are independently owned and operated by franchisees rather than the parent company.
It is the kind of structure that highlights why franchisees like Sailormen bear the brunt of economic strains, while the parent company remains unscathed.
So it’s no surprise that this Chapter 11 filing adds to a growing list of restaurant operators seeking bankruptcy protection in recent years.
Industry observers say many chains and franchise groups are still dealing with debt taken on during the pandemic. It was, after all, a time when footfall dropped significantly, but fixed costs like rent, wages, and insurance stubbornly remained high.
Last year, in a 2025 interview with Fox Business, insolvency attorney Daniel Gielchinsky warned that more restaurant operators are likely to file for bankruptcy. He noted the industry’s footprint could shrink as weaker operators exit the market.
Sources: PACER, Restaurant Business, Fox Business