Georgia has recently seen restaurant chains launch, expand to new cities, reduce locations, or close up shop completely. Now, it seems a major one's local blueprint may be in jeopardy.
Meritage Hospitality Group, which owns 314 Wendy’s locations in 15 states, filed for Chapter 11 Bankruptcy in the U.S. Bankruptcy Court for the Western District of Michigan last week. Wendy's claims Meritage owes $27.4 million in royalties and fees and $119.5 million in continuous operations fees, according to AP News.
Is Wendy's going out of business?
The company said in court documents that it plans to weigh its options and restructure, which could mean closing or selling underperforming locations. Meritage has 48 Wendy's in Georgia. But the company also noted that it is working on "preserving
jobs and restaurant operations across the 15-state footprint."
There are 280 Wendy's in Georgia, so if all of the Meritage restaurants closed, that would represent a 17% cut in locations statewide. We do not currently have a list of which locations in Georgia are part of Meritage.
While there are no reports about Wendy's as a whole going out of business, Yahoo Finance detailed how the chain is facing difficulties with 289 locations closed across the US during the first half of the year.
"Understand that the health of franchisees certainly is pressured right now because of the sales declines that we have had," Wendy's CEO Bob Wright told analysts, as reported by Yahoo. "You guys know this business. When you see some of the sales declines, it is going to show up in restaurant profitability. It is going to pressure the franchisees and create a little bit of fragility there. When it came to closures, I think what you heard in some previous quarters was closures addressed more as a program for the system. You will see us take a much more targeted approach. We are going to come alongside our franchisees if they need our help."
Why did a Wendy's franchisee file for bankruptcy?
Meritage owes 1,000-5,000 creditors, as well as assets and liabilities ranging from $10 million to $50 million, per documents reviewed by USA TODAY. Part of the reason for the bankruptcy filing is an 11.3% decrease in same-store sales during the final quarter of 2025 and unusual winter weather linked to the La Niña cycle in the South, impacting sales, Meritage Hospitality Group said in court documents. They also cited reduced effectiveness of Wendy’s brand marketing, which Wendy’s previously managed.
Another reported reason was record beef prices tied to:
- Historically low herd levels.
- A shutdown of Mexican border beef imports due to disease.
- Tariffs on beef from South America, leading to an 18.9% increase in the company’s average cost of beef compared to the previous year.
@wendys Didn’t even see Shiver Wing coming
♬ original sound - Wendy’s
Meritage has 8,850 employees and has asked for permission to pay wages, other compensation, reimbursable expenses and continue honoring its Employee Benefits Programs, per court documents. The company has also asked for permission to continue honoring Wendy’s gift cards and loyalty programs.
Wendy's careers
There are 27 positions available at various Georgia locations. They can be found at wendys-careers.com.
When does Wendy's stop serving breakfast?
Most Wendy's start serving breakfast at 6:30 a.m. and it runs through 10:30 a.m. But, you'll want to check your local Wendy's hours to be sure.
Have Wendy's delivered with DoorDash
Miguel Legoas is a Deep South Connect Team Reporter for USA Today. Find him on Instagram @miguelegoas and email at mlegoas@gannett.com.
Saleen Martin is a reporter on USA TODAY’s trending team. She is from Norfolk, Virginia – the 757. Email her at sdmartin@usatoday.com.
This article originally appeared on Savannah Morning News: Large Wendy's franchisee with Georgia restaurants files for bankruptcy
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