Hi, let me fill you in on some unfortunate restaurant industry news, but I’ll be quick and brief about it. So, Illinois-based casual dining bar and grill chain S2 Grills recently filed for Chapter 11 bankruptcy protection. Yeah, it’s too bad, but it’s all part of a broader trend impacting casual dining restaurants across the country.
What’s going on with restaurants lately?
You likely recall how merciless the pandemic was to restaurants—some were forced to close their doors completely. When they did reopen, they had to balance new health measures to ensure everyone’s safety. Social distancing, additional cleaning, and reducing how many could eat in. These were unavoidable, but boy, did they make operating a restaurant more complex.
Survival mode: Takeout and curbside pickup
In order to stay solvent, most restaurants converted to takeout and curbside pickup, which enabled them to keep generating some income when dining areas were closed or limited. But when the pandemic eventually eased, and restaurants were finally permitted to seat customers indoors, a whole new wave of financial troubles started.
Inflation and higher costs take their toll
Here’s where it got worse — inflation took food and labor costs through the roof. And, with interest rates going up, getting loans for these businesses became a lot more expensive. All of this squeezed restaurant margins, pushing some chains into financial distress.
The bigger picture: Other chains filing for bankruptcy
S2 Grills is not alone. In fact, some beloved chains have been filing for bankruptcy left and right:
- Red Lobster went bankrupt in May 2024, closed nearly 200 restaurants, but bounced back by September.
- TGI Fridays started filing for Chapter 11 bankruptcy in November 2024, closing several dozen restaurants.
- On The Border Mexican Grill & Cantina closed 40 stores and filed for bankruptcy early in 2025.
- Even CHG US Holdings, the operator of 18 Planta restaurants in big cities like New York and Los Angeles, filed in May 2025.
Back to S2 grills — What’s their story?
S2 Grills’ corporate parent, AWS Hospitality Group Inc., filed for Chapter 11 on June 19, 2025, in Illinois. The company disclosed in its filing that it owes between $1 million and $10 million but has assets of only between $50,000 and $100,000. That’s a tough deficit to overcome.
The chain has nine Illinois stops, such as Chicago, Maywood, Orland Park, Harvey, and Richton Park. Andre and Suheir Williams established S2 Grills in 2019 and grew after rave social media reviews of their menu at the S2 Ultra Bar.
What’s on the menu?
If you ever drop by, you’ll receive some solid, satisfying breakfast staples like the Ribeye Steak Big Breakfast — eggs, steak, potatoes, pancakes, and so on. Or their signature S2 Big Breakfast with sausage or bacon. They also serve Mexican staples like tacos and burritos and comfort food like chicken and waffles, wings, ribs, lobster tails, king crab legs, salmon, shrimp, and lamb chops. So, it’s a pretty substantial, tasty menu.
What next?
Chapter 11 filing does not exactly imply that the chain is shutting down permanently. It is all about debt restructuring in a bid to stay in business and come back stronger. Some of the largest creditors include the likes of Morgan Services Inc., Bank of America, and Sysco. We do not yet know the actual reason for the filing, but it can be no surprise that the restaurant sector continues under the economic pressure of all these compounding stresses.
Bottom line
Running a restaurant isn’t a walk in the park these days. Even popular and growing chains like S2 Grills are having some serious trouble. But Chapter 11 gives them a chance to hit the reset button, regroup, and hopefully keep on serving up those delicious meals we’ve all come to love.
If you’re a fan, follow along as they work their way through this and maybe give your local restaurants some love; every order counts!
