World Stock Watch

Belgian Restaurant Chain Lunch Garden Seeks New Beginnings

Financial Woes Force Restructuring

Lunch Garden, a popular Belgian restaurant chain, has filed for bankruptcy, but a new investor is stepping in to ensure the continued operation of 42 out of 62 locations. CIM Capital, an Antwerp-based investment firm, has acquired the business, promising to revitalize the brand and safeguard as many jobs as possible.

A Difficult Decision

The announcement was made during an extraordinary works council meeting at Lunch Garden’s headquarters in Evere, Belgium. The company acknowledged that the decision was “extremely difficult,” but necessary to secure the long-term viability of the business.

Challenges Ahead

Lunch Garden has faced significant financial challenges, including the impact of Covid-19 lockdowns, rising operational costs due to inflation, and underperforming locations affecting overall results. Despite a positive trend in revenue and operational profits over the past two years, the improvements were not enough to fund necessary investments.

New Ownership, New Direction

CIM Capital, known for its expertise in restructuring struggling businesses, plans to focus on Lunch Garden’s most profitable locations and modernize the chain to meet current market demands. The goal is to enhance the brand’s perception and appeal to a wider demographic, particularly younger customers who have been drawn to more contemporary dining options.

Streamlining Operations

Immediate efforts will concentrate on streamlining operations, investing in profitable sites, and updating the restaurant concept. The transition is expected to occur rapidly, with the restart anticipated within a few days.

A Fresh Start

Lunch Garden’s traditional Belgian offerings, such as vol-au-vents and meatballs in tomato sauce, have struggled to attract younger customers. CIM Capital aims to revitalize the brand by introducing new menu options and updating the dining experience to appeal to a broader customer base.

A New Chapter

With CIM Capital at the helm, Lunch Garden is poised to embark on a new chapter, one that promises to revitalize the brand and ensure its continued success.