Over 100 Popeyes outlets in the Southern United States face potential closure following Sailormen Inc.’s filing for bankruptcy on Thursday. This Miami-based company, established in 1987, operates approximately 130 Popeyes locations, predominantly located in Florida and Georgia. Sailormen Inc. attributes its financial woes to overwhelming debt and escalating expenses. Despite efforts to sell 16 of its restaurants, the company has been unsuccessful and has also struggled with overdue rent, leading to conflicts with landlords, suppliers, and lenders.

This bankruptcy filing raises concerns among customers that their local Popeyes might shut down unless new buyers step in or lease agreements are successfully renegotiated. However, Popeyes’ leadership underscored that this development does not reflect broader issues with the brand. According to a memo from Peter Perdue, who oversees Popeyes operations in the US and Canada, Sailormen Inc. had accumulated significantly more debt than typical operators, even though many of its restaurants continue to perform well financially.

Renowned for its Louisiana-style spicy fried chicken, biscuits, and its viral chicken sandwich, Popeyes boasts around 3,100 locations across the United States, with the highest concentration in Texas, California, and New York. The brand has also expanded internationally, establishing a presence in over 35 countries. Despite this growth, the bankruptcy filing coincides with a challenging period for Popeyes in the US, as rising inflation has led consumers to reduce their spending on fast food, resulting in decreased sales over the past year.

Industry experts say this is becoming a familiar story across fast food, with closures increasingly visible to consumers. ‘Fast food is in the midst of a squeeze. A lot of costs have gone up, including raw ingredients, wages, and overheads,’ said Neil Saunders, a retail expert at GlobalData.

‘At the same time volumes are flat to down as consumers cut back on fast food fixes because of the cost-of-living crisis. ‘This is putting enormous pressure on franchise owners, and some are finding that the economics of their business no longer make sense.’