May 4, 2026
GstechZone
Cryptos

$13 million in lawsuits and liens drive restaurant closures


Most eating places function on such slender revenue margins {that a} dangerous month can wipe out a worthwhile yr.

“Many full eating rooms nonetheless finish the month with skinny or unfavorable margins,” in line with Restaurant Mode.

Throughout the trade, common restaurant internet revenue margins vary between 3 and 10%.

A 2024 Nationwide Restaurant Affiliation survey confirmed that many eating places fall on the decrease finish of that scale.

“Amongst full-service respondents to the survey, earnings earlier than taxes represented a median of two.8% of gross sales in 2025. For limited-service respondents, earnings earlier than taxes was a median of 4.0% of gross sales,” in line with NRA’s 2025 Restaurant Operations Data Abstract.

Rising prices have additionally created a scenario the place eating places want to boost costs, however that may additionally ship clients elsewhere.

“With across-the-board rising enter prices, if the typical restaurant operator hadn’t raised their costs within the final 5 years, their margin would have gone from 5% of gross sales pre-2020, to a pre-tax lack of practically 24% in the present day,” in line with NRA research on inflation.

It is a difficult working atmosphere that has led to many restaurant operators closing their doorways, and Pihakis Restaurant Group, which has closed over a dozen eating places, has been struggling to keep away from shutting down utterly.

Pihakis Restaurant Group faces $13.8 million in debt

Birmingham-based Pihakis Restaurant Group (PRG), which incorporates eating places in Atlanta, faces $13.7 million in lawsuits and liens, in line with a report by AL.com.

The chain, which operates quite a lot of ideas, together with Little Donkey Mexican Restaurant, Rodney Scott’s BBQ, Hero, Magnolia Level, and Psito, has already closed a lot of places.

“Since mid-April, the group has each briefly and completely closed 12 eating places throughout the Southeast, together with Psito in Summerhill and Hero Diner in Fayetteville. Google and the group’s restaurant web sites at present listing the Atlanta places of Psito and Hero Diner as ‘briefly closed,'” reported Rough Draft Atlanta.

Various the chain’s Hero doughnut retailers, typically known as Hero Diner, have closed earlier than the present troubles.

“At its peak, there have been no less than ten Hero places throughout 4 states. The corporate closed short-lived places in Charleston and Nashville in 2024 and after opening in Montgomery in Might 2025, closed it, too, earlier this month,” Tomorrow’s News Today Atlanta reported.

As well as, all eating places on the firm’s multi-eatery Valley Submit undertaking have closed, after a lawsuit was filed in opposition to quite a lot of Pihakis Restaurant Group manufacturers and founder Nick Pihakis.

“As of April 23, 2026, there’s at present unpaid, past-due, and owing to Plaintiff
from the LLC Defendants a complete of $394,238.73, plus curiosity and prices of assortment, together with attorneys’ charges, pursuant to the phrases of the contracts and the invoices,” the lawsuit states.

Pihakis Restaurant Group faces a number of lawsuits

“As of Wednesday, April 29, the liens are totaling greater than $12 million, in line with public information filed in Jefferson and Shelby counties,” in line with WBRC.

Pihakis Restaurant Group instructed the native information web site that it is working with a marketing consultant to create “extra sustainable operations throughout our manufacturers.”

“Following our announcement of the everlasting closure of Tasty City Greek Restaurant and Lounge in Birmingham and Hero in Hoover, we need to present an replace as we proceed to work by way of organizing our manufacturers and places to make sure sustainability,” an organization assertion shared with WBRC on April 17 explaining the method stated.

“We’ve got engaged consulting assist and are targeted on doing the arduous, cautious work required to construct a path ahead — one which honors our staff, our visitors, and the superb household of eating places that make up Pihakis Restaurant Group.”

Pihakis Restaurant Group's future remains unclear. Shutterstock
Pihakis Restaurant Group’s future stays unclear. Shutterstock

Pihakis Restaurant Group landlord information liens

Business actual property developer Michael Mouron owns and leases a number of properties to Pihakis Restaurant Group and its affiliated entities and filed liens on April 14 in opposition to eight of these places.

  • A $72,065.56 lien initially filed in opposition to 1726, 1722, and 1720 twenty eighth Avenue South, the place Hero Homewood and Luca Lagotto are situated, has been amended to $2,708,365.56.

  • The lien filed in opposition to Rodney Scott’s Homewood for $36,090.50 has been amended to $803,856.51, and the lien in opposition to Little Donkey Homewood has been amended to $803,856.51. It was initially filed for $31,042.98.

  • A lien filed in opposition to Pihakis Restaurant Group for 4 properties on third Avenue South in Birmingham, the place Joyland is situated, was amended on April 27 to $1,075,983.64.

  • Mouron additionally owns the Dunnavant Valley improvement in Chelsea, the place Pihakis Restaurant Group not too long ago opened Hero Diner, Little Donkey, Luca & Lucy, and Rodney Scott’s BBQ. In an amended lien for these properties filed on April 27, Mouron is searching for to “safe an indebtedness of $7,166,296.20, plus cheap legal professional’s charges and different bills for hire due beneath the stated leases.”
    Supply: WBRC

“A lien is a safety curiosity or authorized proper acquired in a single’s property by a creditor, or lienholder. A lien often prevents the sale of the property till the underlying obligation to the creditor is happy. If the underlying obligation shouldn’t be happy, the creditor could possibly take possession of the property concerned,” in line with Cornell Law.

A request for remark to the e-mail listed on the Pihakis Restaurant Group web site bounced again as “undeliverable.”

Related: McDonald’s rival closes 729 more restaurants

This story was initially printed by TheStreet on Might 4, 2026, the place it first appeared within the Restaurants part. Add TheStreet as a Preferred Source by clicking here.



Source link

Related posts

BitMine Expands ETH Holdings Regardless of $6.5B in Unrealized Losses

Worldwide Crackdown Shutters 9 Crypto Rip-off Facilities, 276 Arrested

Financial institution of Korea nominee backs CBDC-led system with restricted stablecoin function