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The Street
The Street
Daniel Kline

Famous restaurant files for Chapter 11 bankruptcy

Many cities have a food they are famous for, and a restaurant, sometimes a few, that serve their twist on the beloved local cuisine.

New Haven, Conn., for example, has Sally's, Modern, and Pepe's — three restaurants known for the city's thin-crust pizza. Much like the battle between Pat's King of Steaks and Geno's Steaks in  Philadelphia, the New Haven pizzerias each make similar, but not the same, versions of what's known as "apizza."

Related: Restaurant chain closes dozens of locations as bankruptcy looms

Not every city has a clear-cut winner, but there are a lot of popular local institutions. Sometimes there's a reason for an eatery to stand out. Buffalo's Anchor Bar literally invented the Buffalo wing. (Other claim the title as well.) Regardless, the Anchor Bar attracts both locals and tourists since its signature wing has become ubiquitous.

The list is pretty long and sometimes the signature item is more famous than good. That, some would argue, is the case for Cincinnati's famed Skyline Chili, an eatery known for putting chili on spaghetti, a much-debated practice. 

In other cases, the famed local eatery uses an ingredient that's indigenous to the area, like Joe's Stone Crab in Miami or Conch Republic in Key West, which serves the local pink shrimp, which is caught the same day it's served to you.

Now, lots of Key West restaurants might argue that they're the city's most famous restaurant, but losing any restaurant that's in the discussion hits hard.

Many restaurants have struggled since the covid pandemic.

Image source: Shutterstock

Local restaurant with a famous dish struggles

If you have visited Tampa, someone has probably told you to eat at Brocato’s, a 76-year-old sandwich shop. The eatery, famous for its Devil Crabs, has been a local hotspot and tourist attraction for much of its history.

What's a Devil Crab and why isn't it Deviled Crab? Essentially, it's a croquette stuffed with spicy blue crab meat. The whole thing is then dredged in flour and deep-fried.

It's a Tampa-area tradition and Brocato's, a family-owned restaurant throughout its long history, claims to have the best version of the dish, which when served elsewhere would be known as Deviled Crab. The restaurant has a long history before it became what it is now.

More bankruptcy:

"In 1948, Brocato’s opened its doors for business. From grocery store to meat market, to sandwich shop, Brocato’s has always strived to provide the best sandwich in Tampa, combined with friendly service," the company said on its website. "These values, coupled with the hard work and dedication of the Brocato family, have attracted and maintained loyal customers through the years." 

A local restaurant institution files Chapter 11 bankruptcy

Brocato's Sandwich Shop has filed for Chapter 11 bankruptcy protection with the court in the Middle District of Florida. The company reports assets of less than $50,000 and debt between $1 million and $10 million.

The company owes the Florida Department of Revenue nearly $700,000 and Sysco Corp., a wholesale food vendor, $400,000. It also owes Joseph Brocato, one of its owners, $220,000 due to money he loaned the company. Its remaining debts include $21,000 to Gordon Food, $14,000 to Samuels & Son Seafood, with all remaining debts below $10,000.

ALSO READ: Restaurant chain closes dozens of locations as bankruptcy looms

The restaurant is still open, however.

Representatives of the family have said that the filing was an attempt to get its finances in order after debts piled up during the covid pandemic. The company has not posted anything about the Chapter 11 filing on its Facebook page. The last time anyone posted on the page was in 2021. 

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The Tampa Business Journal broke the news on its website and Instagram page.

"The popular Tampa lunch counter Brocato’s Sandwich Shop filed for Chapter 11 bankruptcy this week to reorganize its debts after falling behind on payments to the Florida Department of Revenue and several vendors. ... Brocato’s Cuban sandwich has been ranked by numerous sources as among the best in Tampa Bay, while its devil crabs are a cult classic," the media outlet reported.

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