Burger lovers, beware! Is your favorite burger place closing?
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The aroma of sizzling patties and the allure of creamy milkshakes might be fading for fans of a beloved Southern burger institution.
The GrayVine community, where memories of family dinners and post-game celebrations often include places like Hwy 55, is abuzz with concern and nostalgia.
This burger place has long been part of the East Coast’s culture, so why are they closing down?
Hwy 55 Burgers, Shakes & Fries, a staple in the comfort food scene, has hit a financial snag that could lead to the dimming of its neon signs across the region.
The parent company, The Little Mint, Inc., headquartered in the quaint town of Mount Olive, North Carolina, has filed for Chapter 11 bankruptcy on the last day of the year, a move that has sent ripples of worry about potential mass closures through the hearts of burger enthusiasts.
The filing, which was reported by The Street, paints a picture of a company caught between a rock and a hard place, with assets listed between $1 million to $10 million and liabilities towering at $10 million to $50 million.
The pandemic's long shadow, marked by labor shortages and financial distress, has been cited as the primary culprit behind this downturn.
Before the bankruptcy announcement, the company had already shuttered 13 corporate-owned locations, a preemptive measure that now seems like a harbinger of the current crisis.
With approximately $11 million in secured debt and another $5.8 million in unsecured debt, the future of Hwy 55's 22 corporate-owned and 71 franchised locations in North Carolina, South Carolina, Tennessee, Alabama, and Georgia hangs in the balance.
The chain, which has been a fixture in strip malls before transitioning to stand-alone operations with drive-thru windows in 2018, is now grappling with the same challenges that have toppled other dining establishments in the wake of the pandemic.
Labor issues, inflation, and a shift in American dining habits have all contributed to the perfect storm that Hwy 55 is now navigating.
Despite generating $24.4 million in revenue in 2023, the burger joint has been unable to stem the tide of net losses over the past two years.
The closure of a location in Murfreesboro, Tennessee, mere months after its grand opening, is emblematic of the chain's struggles. The company's website no longer lists the short-lived restaurant, which reportedly underwent a “change in leadership” before its closure.
Adding to the company's woes, the US Department of Labor found that Little Mint, Inc. had employed minors outside of permissible hours and assigned them tasks deemed dangerous.
In March 2024, founder Kenny Moore entered an enhanced compliance agreement with the agency after it was discovered that the company had 13 children working past 7 pm and more than three hours on a school day, in violation of child labor laws.
Kenny Moore's journey with the company began in 1991 with Andy's Cheesesteaks & Cheeseburgers, which was rebranded in 2012 to the now-familiar Hwy 55 Burgers, Shakes & Fries.
The chain's menu, featuring an array of burgers, cheesesteaks, chicken fingers, frozen custard, salads, and more, has been a draw for customers seeking a taste of Americana.
This bankruptcy filing echoes the recent shutdown of another sandwich chain, Melt Bar and Grilled, which gained fame on the Food Network's “Diners, Drive-ins and Dives.”
Despite a successful relaunch of its original location, Melt Bar and Grilled could not sustain the business levels needed to survive, leading to its closure.
“All aspects of the relaunch succeeded according to plan except one: the projected robust business levels never happened,” Matt Fish, Mel Bar and Grilled owner, wrote.
In earlier news, another popular sandwich chain faced bankruptcy, leading to a shakeup that affected many of its loyal customers. You can read more about it in this story here.
Have you noticed changes in your local dining scene? What do you think can be done to support these businesses? Share your thoughts and memories in the comments below!
The GrayVine community, where memories of family dinners and post-game celebrations often include places like Hwy 55, is abuzz with concern and nostalgia.
This burger place has long been part of the East Coast’s culture, so why are they closing down?
Hwy 55 Burgers, Shakes & Fries, a staple in the comfort food scene, has hit a financial snag that could lead to the dimming of its neon signs across the region.
The parent company, The Little Mint, Inc., headquartered in the quaint town of Mount Olive, North Carolina, has filed for Chapter 11 bankruptcy on the last day of the year, a move that has sent ripples of worry about potential mass closures through the hearts of burger enthusiasts.
The filing, which was reported by The Street, paints a picture of a company caught between a rock and a hard place, with assets listed between $1 million to $10 million and liabilities towering at $10 million to $50 million.
The pandemic's long shadow, marked by labor shortages and financial distress, has been cited as the primary culprit behind this downturn.
Hwy 55 Burgers, Shakes & Fries, operated by The Little Mint, Inc., has filed for Chapter 11 bankruptcy due to financial distress and labor shortages. Image source: Hwy 55 Burgers Shakes & Fries.
Before the bankruptcy announcement, the company had already shuttered 13 corporate-owned locations, a preemptive measure that now seems like a harbinger of the current crisis.
With approximately $11 million in secured debt and another $5.8 million in unsecured debt, the future of Hwy 55's 22 corporate-owned and 71 franchised locations in North Carolina, South Carolina, Tennessee, Alabama, and Georgia hangs in the balance.
The chain, which has been a fixture in strip malls before transitioning to stand-alone operations with drive-thru windows in 2018, is now grappling with the same challenges that have toppled other dining establishments in the wake of the pandemic.
Labor issues, inflation, and a shift in American dining habits have all contributed to the perfect storm that Hwy 55 is now navigating.
Despite generating $24.4 million in revenue in 2023, the burger joint has been unable to stem the tide of net losses over the past two years.
The closure of a location in Murfreesboro, Tennessee, mere months after its grand opening, is emblematic of the chain's struggles. The company's website no longer lists the short-lived restaurant, which reportedly underwent a “change in leadership” before its closure.
Adding to the company's woes, the US Department of Labor found that Little Mint, Inc. had employed minors outside of permissible hours and assigned them tasks deemed dangerous.
In March 2024, founder Kenny Moore entered an enhanced compliance agreement with the agency after it was discovered that the company had 13 children working past 7 pm and more than three hours on a school day, in violation of child labor laws.
Kenny Moore's journey with the company began in 1991 with Andy's Cheesesteaks & Cheeseburgers, which was rebranded in 2012 to the now-familiar Hwy 55 Burgers, Shakes & Fries.
The chain's menu, featuring an array of burgers, cheesesteaks, chicken fingers, frozen custard, salads, and more, has been a draw for customers seeking a taste of Americana.
This bankruptcy filing echoes the recent shutdown of another sandwich chain, Melt Bar and Grilled, which gained fame on the Food Network's “Diners, Drive-ins and Dives.”
Despite a successful relaunch of its original location, Melt Bar and Grilled could not sustain the business levels needed to survive, leading to its closure.
“All aspects of the relaunch succeeded according to plan except one: the projected robust business levels never happened,” Matt Fish, Mel Bar and Grilled owner, wrote.
In earlier news, another popular sandwich chain faced bankruptcy, leading to a shakeup that affected many of its loyal customers. You can read more about it in this story here.
Have you noticed changes in your local dining scene? What do you think can be done to support these businesses? Share your thoughts and memories in the comments below!
