Razzoo's Cajun Cafe Files Chapter 11 Bankruptcy Amid Pandemic and Competition Pressures Across Multiple States

Razzoo's Cajun Cafe, a Texas-based casual dining chain known for its Cajun cuisine, filed for Chapter 11 bankruptcy protection due to declining sales influenced by shifts in consumer preferences towards convenience, delivery, and affordability since the COVID-19 pandemic. The company cited increased competition from chains like Chili's and Applebee's, which have employed aggressive discounting and marketing campaigns, as a significant factor in its reduced customer traffic. Additional challenges include rising inflation, high interest rates, burdensome leases, and a decrease in crawfish prices, which negatively impacted Razzoo's seasonal sales. At its peak, Razzoo's operated 24 locations across Texas, North Carolina, and Oklahoma but has since closed several underperforming restaurants, leaving 20 stores at the time of filing. The bankruptcy filing aims to pause debt collections and allow the company to restructure while keeping its remaining locations open, with leadership expressing confidence in a potential recovery and future expansion. Razzoo's holds assets and liabilities estimated between $10 million and $50 million, with significant debts owed to landlords contributing to its financial strain.