Oprah-backed True Food Kitchen files for bankruptcy, closes 12 locations
The health-focused restaurant chain is grappling with $42 million in debt and seeks a buyer.
True Food Kitchen, a restaurant chain with backing from Oprah Winfrey, has filed for Chapter 11 bankruptcy protection and permanently closed 12 of its locations due to approximately $42 million in debt.
The closures represent about a quarter of the chain's previous footprint, impacting restaurants in California, Miami, Chicago, New Orleans, Maryland, New Jersey, New York, Ohio, and Virginia. However, the company stated that its 34 remaining restaurants will continue to operate as it undergoes a restructuring.
True Food Kitchen is currently seeking a buyer or a financial partner through a court-supervised sale process. The company has secured a $20 million commitment for debtor-in-possession financing from HumanCo to support operations during the bankruptcy proceedings.
In court filings, the company cited management turnover, strategic missteps, expansion decisions, and other challenges as reasons for its financial difficulties. The restaurant industry as a whole has also faced rising costs for food, labor, and occupancy, making it challenging to maintain attractive pricing while protecting profit margins.
Founded in Phoenix in 2008 by restaurateur Sam Fox and Dr. Andrew Weil, True Food Kitchen was built on an anti-inflammatory food philosophy. Its menu features a range of dishes, including salads, grain bowls, burgers, and pizzas, with an emphasis on healthy ingredients. Popular items include the Ancient Grain Bowl, Teriyaki Quinoa Bowl, and Organic Tuscan Kale Salad.
Oprah Winfrey invested in the brand in 2018 and joined its board, having expressed admiration for the food and the company's healthy-eating approach. Other notable investors have included former Starbucks CEO Howard Schultz and celebrity couple Nick Jonas and Priyanka Chopra Jonas. In 2022, the company raised over $100 million from investors led by HumanCo and Manna Tree, with plans for further expansion.
Despite previous growth ambitions, the chain has been forced to scale back its operations. The company has not disclosed the profitability of individual locations, but its bankruptcy filing points to issues with costs, leadership changes, and investments that did not yield expected results.