Buttermilk Eatery owner files for Chapter 11 bankruptcy

The breakfast dining sector has faced financial pressure in 2026, prompting some chains to close locations and, in certain cases, seek bankruptcy protection. For operators in a crowded market, Chapter 11 can provide time to reorganize while existing disputes and creditor claims are worked through in court.

Franchisees of the iconic Denny's chain, including DBJ US Corp. in Miami Beach, Fla., have been among the restaurant operators to file for bankruptcy. Smaller chains, including Sarabeth's in New York City and Breakfast Republic in San Diego, have also closed multiple locations in an effort to cut costs and remain in business.

Buttermilk Eatery files for bankruptcy

Now, the owner of breakfast and brunch chain Buttermilk Eatery has filed for Chapter 11 protection to reorganize its business while facing a lawsuit.

Asani Restaurant Group LLC filed its petition in the U.S. Bankruptcy Court for the Middle District of Florida on Aug. 31, listing more than $75,000 in assets and more than $407,000 in debts.

The debtor did not provide a specific reason for the bankruptcy filing in its petition. A company spokesperson was not immediately available for comment.

Founded in January 2023, the restaurant chain serves breakfast, brunch and lunch at locations in North St. Petersburg and Pinellas Park, Fla., and has plans to open a third location in St. Petersburg's Grand Central District in summer 2026.

Buttermilk Eatery competes with the Denny's chain, which operates a location in St. Petersburg.

The debtor has not commented on whether it will continue with plans to open the third location.

Buttermilk Eatery opened its first restaurant on Roosevelt Blvd. North in St. Petersburg in 2023 and its second location on US Highway 19N in Pinellas Park in early 2024. Both locations offer online ordering and robot food runners.

Chain plans location opening

The restaurant chain said in May 2026 that it planned to take over the former Urban Brew \u0026 BBQ space at 2601 Central Ave. in St. Petersburg, St. Pete Rising reported. That restaurant closed in September 2025 after 12 years in business.

The new Buttermilk Eatery location would include 1,400 square feet of indoor space and a 3,000-square-foot covered patio dining area. Diners would be able to order through traditional table service or from their phones by scanning a QR code at the table.

Creditor files lawsuit

Asani Restaurant Group creditor MGM Investment Properties Inc. filed a lawsuit against the restaurant owner on Jan. 8, 2026, seeking payment for kitchen equipment it allegedly provided to Asani in November 2022, according to UniCourt.

All litigation is subject to an automatic stay while the bankruptcy case proceeds.

According to the Chapter 11 petition, the St. Petersburg, Fla.-based restaurant chain's largest unsecured creditors include Spartan Capital, owed more than $178,000; Toast Capital LLC, owed more than $145,000; LQ Commercial Property Management, owed more than $53,000; Bear Robotics, owed $30,000; and Chase Card Member Services, owed more than $29,000.

A competitor breakfast chain, and another Florida restaurant operator, has also filed for bankruptcy.

Another Florida restaurant bankruptcy

A St. Petersburg-based franchisee of the Village Inn breakfast chain filed for Chapter 11 bankruptcy protection on behalf of three Florida locations after the operator's revenue fell significantly over the past two years.

The franchisee filed petitions for Village Inn locations in Land O Lakes, Brandon and Zephyrhills, Fla., in the U.S. Bankruptcy Court for the Middle District of Florida on June 10, according to BKAlerts.

A manager at the Land O Lakes Village Inn location told TheStreet that all three locations named in the bankruptcy were operating normally and had no plans to close.

The franchisee's managing member, Lloyd Lehan IV, did not respond to a request for comment.

Village Inn Restaurants launched in 1958 in Denver and currently has 109 locations in 19 states, according to its website.

This story was originally published by TheStreet on Sep. 1, 2026, where it first appeared in the Restaurants section.