October 6, 2025

Razzoo’s Cajun Cafe Files for Chapter 11 Bankruptcy

News Summary

Razzoo’s Cajun Cafe, a notable name in Texas dining since 1991, has filed for Chapter 11 bankruptcy. The restaurant chain is facing approximately $12.7 million in debts due to declining sales, increased competition, and rising operational costs. Despite previously booming, Razzoo’s has seen a reduction in locations and is working on securing financing to restructure its operations while dealing with tough industry challenges.

Texas – Razzoo’s Cajun Cafe, the popular casual dining chain, has filed for Chapter 11 bankruptcy protection as of October 1, 2025, in the Southern District of Texas. The filing indicates the restaurant faces significant financial struggles with total debts amounting to approximately $12.7 million, broken down into about $9.7 million in secured debts and $3.1 million in unsecured debts.

The CEO, Philip Parsons, outlined the challenges that led to this decision, highlighting declining sales, shifting consumer preferences that favor convenient dining options, and increased competition from other casual dining establishments. As a result, Razzoo’s, which currently operates 20 locations spread across Texas, North Carolina, and Oklahoma, has closed four underperforming restaurants within the last two years.

Despite its long-standing presence in the market, including the opening of its first location in Dallas in 1991, Razzoo’s has seen a downturn in business. The chain previously peaked at 24 locations but has been unable to maintain that number. The pressures from competitors such as Chili’s and Applebee’s, who have engaged in aggressive discounting tactics, have further eroded Razzoo’s market share.

Monthly rent obligations of approximately $650,000 have also compounded Razzoo’s financial difficulties. The rising operational costs, coupled with changing consumer behavior and inflation, have led to reduced consumer spending across the restaurant industry, affecting Razzoo’s ability to thrive in a saturated market.

In 2024, Razzoo’s total systemwide sales reached about $76.6 million. However, these figures do not reflect the strain that the company has faced during traditionally strong sales periods, such as the crawfish season, which has been impacted by heightened competition. The chain is now contemplating further closures as a strategy to stabilize its operations moving forward.

To navigate through the bankruptcy process and preserve some level of operation, Razzoo’s intends to secure debtor-in-possession (DIP) financing. This financial strategy aims to ensure that the restaurant can maintain operations and compensate its staff during the restructuring process.

The current situation with Razzoo’s Cajun Cafe is reflective of broader trends within the casual dining industry, which has witnessed a series of bankruptcies among several chains. Notable competitors like Bravo Brio Restaurants and Opa! Authentic Greek Cuisine have recently filed for Chapter 11 bankruptcy, indicating a challenging landscape for many dining establishments.

As Razzoo’s tackles its financial hurdles, it remains to be seen how the company will adapt and respond to industry pressures. With ongoing shifts in consumer dining preferences and economic conditions, the future of Razzoo’s will likely depend on its ability to innovate and reclaim its place in a competitive market.

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