Waffle House's Future Questioned

NORCROSS, GA-Locally based Waffle House Inc., which has 1,500 never-closed restaurants throughout half the US, does not appear to be affected by bankruptcy filings by two of its major franchisees in the Southeast. Only a few of its iconic 1,400-square-foot yellow buildings have closed since the actions began in recent months.

SouthEast Waffles LLC, which owns 113 Waffle House units, filed for Chapter 11 reorganization in August after discovering what it termed as “accounting irregularities,” including nearly $3 million owed in federal income tax. The Nashville, TN-based franchisee is working with Atlanta-based Resurgence Financial Services LLC on a restructuring plan.

In September, Tampa, FL-based Northlake Foods LLC also filed Chapter 11 to halt Waffle House from kicking it out of the chain. Northlake has 125 restaurants, mostly in Central Florida but also in Georgia and Virginia. The company previously owned 146 restaurants and claimed annual revenue of approximately $80 million.