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The Street
The Street
Daniel Kline

Popular bakery chain files unexpected Chapter 11 bankruptcy

Bakery chains and cafes have struggled as they try to become full-day businesses.

Even Starbucks has worked to get people to visit its cafes outside of breakfast and lunch hours. The coffee giant has tried multiple evening menus, attempted to launch a soda line, and often resorts to buy-one-get-one offers to drive business later in the day. 

Starbucks, of course, sells enough coffee, drinks, meals and snacks during its busy hours to make up for the slower parts of the day.  

Related: Another distressed retail chain files for Chapter 11 bankruptcy

In addition to daypart-based challenges, cafe and bakery chains have had to deal with changing customer patterns and routines. 

After the pandemic eased, some companies never asked workers to return to the office while others moved to or stayed with hybrid models. That devastated many cafes and bakeries located near offices where the core clientele was workers picking up their morning coffee and baked goods, then maybe coming by for lunch or an afternoon break. 

This change of routine also applied in residential areas. Starbucks, for example, used to have long lines from 7 to 9 a.m. Now, with people not commuting to work as often or at all, it's harder to know when they might seek out coffee and pastry.

Many smaller cafes and bakeries thus have closed because many of their customers simply weren't there anymore. Corner Bakery, a Starbucks-like chain, was purchased for pennies on the dollar after a Chapter 11 bankruptcy filing. 

Now, another regional favorite chain, one that serves a particular niche, has filed for Chapter 11 bankruptcy.

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Even Starbucks has been forced to close locations due to changing work patterns.

Image source: Starbucks

Bakery chain offers a kosher menu

It's a challenge to make kosher food so good that people who do not follow a kosher diet don't think twice about eating there. 

Patis Bakery, which has multiple outlets in New York and New Jersey, has done that spectacularly well.

"Patis is a place for pastry enthusiasts," the company's website says. "We proudly serve across 14 locations throughout New York, New Jersey, and Brooklyn. 

"Here, the art of baking transcends tradition, blending the finest European and American techniques to create an unforgettable culinary experience. From the crunch of our croissants to the velvety smoothness of other treats, each bite tells a story." 

The bakery chain offers food that's kosher certified by the Orthodox Union, which details what that means on its website.

"The Bible lists the basic categories of food items which are not kosher. These include certain animals, fowl and fish (such as pork and rabbit, eagle and owl, catfish and sturgeon), most insects, and any shellfish or reptile," the organization explained. "In addition, kosher species of meat and fowl must be slaughtered in a prescribed manner, and meat and dairy products may not be manufactured or consumed together."

Regional bakery chain files Chapter 11 bankruptcy

Patis has fallen victim to many of the same problems that have plagued local bakeries and cafes since the Covid pandemic. The company filed for Chapter 11 bankruptcy, in U.S. Bankruptcy Court for the District of Delaware in Wilmington, and it plans to continue operating at least some of its locations.

“I’m here to share some significant updates about Patis Bakery, the first kosher café chain of its size in the U.S.," Elon Kornblum reported in a message on the Great Kosher Restaurants Foodies Facebook page. "Patis took a bold step to bring high-quality kosher cafés to areas that traditionally lack kosher options, including the heart of Times Square.” 

The bakery chain, he said, has closed three locations.

“Recently, Patis Bakery filed for Chapter 11 bankruptcy as part of a strategic restructuring plan. This move is designed to help them continue to serve our community," he wrote. "Despite the challenges, 11 of their locations remain open, ready to serve you artisan quality sandwiches and pastries you’ve grown to love.”

More bankruptcy:

Patis has not filed a turnaround or funding plan with the bankruptcy court. It continues to honor gift cards at its existing locations.

Related: Fast-food chain fights for survival after Chapter 11 bankruptcy

Kornblum, the publisher of Great Kosher Restaurants magazine, urged people to continue to support Patis. 

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“Without our support, there is a possibility that they could close their doors and I for one do not want that! Let’s rally together and support Patis, ensuring they can keep bringing kosher excellence to our communities,” he added.

 

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