49-year-old pub chain closed over 250 restaurants, only 21 left
Sometimes success can cause its own problems.
A community may support one or two specific types of businesses, but once a company becomes successful it’s natural for copycat brands to enter the space. There is only so much new demand that can be created, and at some point oversaturation can cause multiple businesses to fail.
In a sense, that’s what’s happening with Uber and Lyft. Although both companies offer the needed service, their prices are limited not only by the cost of taxi and car services, but also by each other’s presence.
If Uber charges more than Lyft, a certain number of customers will use the other brand. This is a vicious cycle that often results in the merger or bankruptcy of both companies.
Too much competition can cause restaurants to go out of business, and that’s part of what has brought Bennigan’s, a once-thriving chain, to the brink of extinction.
By the early 2000s, Bennigan’s American take on an Irish bar was a fast-growing chain that had grown to more than 300 restaurants. However, the company collapsed due to market conditions beyond its control.
“These restaurants share many nuanced and complex challenges that extend beyond this challenging economic environment,” then-Chief Technology Officer Ron Paul told MarketWatch. Money Morning. “To some extent they have become victims of their own success; at least in the eyes of consumers, it is a mature category with too many units and not enough differentiation.”
The website suggests that with so many similar options in the casual dining restaurant market, consumers may want to choose TGI Fridays or Ruby Tuesday Inc. He shared that he had little incentive to choose Bennigan’s over similar competitors such as.
“All these bar and grill concepts are very, very similar,” former Technomic Executive Vice President Bob Goldint told The New York Times. Kiplinger. “They have the same type of menu, decor and appeal,” making it difficult to build brand loyalty among customers.
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Bennigan’s was a rapid success story, but his collapse and near death was also sudden.
“Known more for its happy hours than its food, the chain’s sudden collapse in 2008 was almost epic: Its owner filed for Chapter 7 liquidation and closed 150 company-owned restaurants (more than 100 franchises survived) and all Steak and Ale joints overnight. Two years earlier, it had closed all of its locations in New York state and Connecticut,” the magazine reported.
Bennigan’s was founded 1976 (First location in Atlanta, Georgia).
At its peak, Bennigan’s “had over 300 restaurants.”
Bennigan’s bankruptcy closed in 2008 when its parent company filed for bankruptcy (Chapter 7). All 150 company-owned locations almost instantly. Source: Kiplinger
There were a lot of people left at that time. franchised Bennigan’s – but most of these locations gradually closed in subsequent years. Source: Puree
By the early 2010s, as the chain struggled to revive under new ownership, Bennigan’s had already fallen into decline. only a few dozen locations. Source: Restaurant News Source
Over time, additional closures continued to reduce the number of restaurants surviving.
In 2015, a new owner (through Legendary Restaurant Brands, LLC) purchased Bennigan’s and its sister chain (Steak and Ale), aiming to revitalize the brand.
The revival involved not only trying to re-establish restaurants, but also launching a “fast-casual/limited menu” concept called Bennigan’s On The Fly, a version designed for non-traditional venues (casinos, airports, ghost kitchens, food halls, etc.).
Current counts include: 21 truly “brick-and-mortar” Bennigan’s restaurantsplus 21 Bennigan’s units in Action. Source: Bennigans.com
While more than 275 classic Bennigan’s restaurants have closed, Legendary Restaurant Brands has comeback plans. But this comeback won’t necessarily focus on the United States.
“Bennigan’s, the iconic American brand known for its legendary cuisine, warm hospitality and globally recognized franchise model, is preparing for a significant wave of expansion across the Gulf Cooperation Council (GCC). This strategic growth includes a major commitment to open multiple Bennigan’s and Bennigan’s On The Fly locations in Qatar over the next few years through its long-standing partnership with Almuftah Sterling Restaurant Group,” the company said in a statement on Nov. 20. Press release.
Taste of the Country He noted in an October article that Bennigan was ready for a comeback.
“New ownership is modernizing the menu, bringing back signature décor and leaning into ‘experiential dining,’ creating casual, communal fare that feels familiar and fun. Multiple locations have already reopened in urban and suburban areas, and the casual atmosphere is just as fans remember,” the website says.
Legendary Restaurants is actively seeking new franchise operators.
“With a renewed focus on improving the business environment and easing regulations, these franchise formats – full-service, hybrid and casual steakhouse – enable adaptability,” said CEO Paul Mangiamele. Press release. “By offering proven business models, we enable franchisees to realize their personal visions of the American Dream.”
Related: Popular burger chain abruptly closed locations nationwide
This story was first published by . Street He first appeared in the Restaurant episode on November 27, 2025. Add TheStreet at: Preferred Source by clicking here.
