The upscale steakhouse chain confronts rising costs and declining customer demand, closing its Minneapolis location after just six months.
Category: Business
In a move highlighting the financial turmoil facing the restaurant industry, 801 Restaurant Group LLC, the operator of the upscale steakhouse chain 801 Chophouse, has filed for Chapter 11 bankruptcy protection. The filing took place on April 10, 2026, in the U.S. Bankruptcy Court for the District of Kansas, a decision that reflects the mounting pressures on dining establishments across the country.
The company, which operates eight locations in cities including Denver, Des Moines, Kansas City, St. Louis, Leawood, Minneapolis, Omaha, and Tysons Corner, Virginia, listed its assets and liabilities between $10 million and $50 million. According to reports, 801 Restaurant Group is facing debts totaling $18.7 million, which include over $3 million in lease guarantees and $1.8 million owed to the U.S. Small Business Administration.
As part of its restructuring plan, the company intends to keep its remaining restaurants operational, allowing them to continue serving customers, paying employees, and accepting reservations during the bankruptcy process. This approach aims to provide the restaurant group with the necessary time and flexibility to develop a sustainable business model, rather than shutting down entirely.
The recent closure of the 801 Nicollet location in Minneapolis, which had been open for less than six months, has added to the company’s challenges. The restaurant, situated in the U.S. Bancorp Center, abruptly shut down with only a sign indicating "extenuating circumstances". This location had previously hosted another restaurant concept, 801 Fish, which also failed within two years, illustrating the difficulties faced by dining establishments in the area.
Industry experts attribute the struggles of 801 Chophouse and similar establishments to several factors, including rising food costs, decreased foot traffic from office workers, and changing consumer habits. In March 2026, steak prices surged by 16% to an average of $12.73 per pound, driven by a decline in the U.S. beef cattle herd, which has reached a 75-year low of 86.2 million head. This increase in costs has forced many restaurants to either raise menu prices or operate on thinner profit margins, both of which can deter customers.
According to data from the Federal Reserve Bank of St. Louis, ground beef prices have also escalated, now averaging $6.70 per pound, compared to $3.96 per pound five years ago. These price hikes are compounded by a broader trend of inflation affecting the restaurant sector, where labor costs and rent in prime locations remain high.
As the restaurant industry continues to grapple with these challenges, 801 Chophouse is not alone. Other notable chains, such as Outback Steakhouse and McCormick & Schmick’s, have also shuttered multiple locations in recent years. Outback Steakhouse closed 41 underperforming restaurants in 2025, and McCormick & Schmick’s has reduced its presence from 60 locations to just 13.
The decision to file for Chapter 11 bankruptcy is a strategic move for 801 Restaurant Group, allowing it to reorganize its finances under court supervision. This process will involve negotiations with creditors and lenders to craft a viable plan moving forward. The next court proceedings are scheduled to commence in May, where the company will present its restructuring proposals.
801 Chophouse has been a fixture in the fine dining scene since it first opened in Des Moines, Iowa, in 1993. Known for its premium cuts of beef and high-quality dining experience, the chain has expanded over the years, but the recent economic climate poses a serious threat to its business model. Menu highlights include a $145 Rosewood Ranches American ribeye and a $143 dry-aged porterhouse, appealing to diners seeking a luxurious meal.
As the company navigates this difficult period, it remains committed to keeping its flagship restaurant in Des Moines operational, which has been a landmark since its inception. The closure of its Minneapolis location suggests a strategic pivot toward its more established and successful venues, rather than experimenting with new locations that may not sustain themselves.
The broader implications of 801 Restaurant Group’s bankruptcy filing resonate throughout the luxury dining sector, where high costs and shifting consumer preferences are forcing many establishments to reevaluate their strategies. The trend of remote and hybrid work has drastically reduced lunchtime crowds in urban areas, leading to a decline in sales for restaurants that once relied heavily on office workers.
As the company prepares for the upcoming court proceedings, it faces a challenging road ahead, in terms of financial restructuring and in adapting to a rapidly changing dining environment. The bankruptcy filing serves as a stark reminder of the pressures that many restaurants are currently experiencing, and how quickly circumstances can shift in the competitive food service industry.
In the coming weeks, 801 Restaurant Group will work closely with its legal representatives, Brown & Ruprecht PC, to formulate a comprehensive plan aimed at stabilizing its operations and satisfying creditor demands. The outcome of this restructuring will be closely watched, as it could set a precedent for other struggling restaurants in the upscale dining sector.