Running a successful restaurant, whether it's a fine dining establishment, an iconic diner or part of a behemoth chain, is tough at the best of times. Yet while many spots sadly shutter and disappear forever, there are some heartwarming stories of restaurants brought back from the brink of collapse by investors or customers who can’t bear the thought of losing them. Here, we reveal the most beloved restaurants that snatched victories from the jaws of defeat.
Click or scroll through our gallery to discover the iconic restaurants that came back from the brink.
We've based our ranking on the circumstances of each restaurant, and on the opinions of our well-travelled (and well-fed) team. The list is unavoidably subjective.
The first California Pizza Kitchen was a trailblazer when it opened in glitzy Beverly Hills in 1985, serving classic pizzas with toppings inspired by its home state. It quickly expanded, with over 250 restaurants in more than 30 states and 11 countries, including the UK. Like many other chains and restaurants, loss of profits due to COVID-19 led to CPK filing for bankruptcy in July 2020.
California Pizza Kitchen looked destined to be confined to hospitality history, having failed to attract any bids for its assets and forced to hand over the company to bank lenders. But the chain announced in late 2020 that it had completed its restructuring process and would relaunch with reduced debt. Now open again, the restaurant operates around 185 outlets.
The original Chi-Chi's opened in Richfield, Minnesota, in 1975 – the brainchild of restaurateur Marno McDermott and former Green Bay Packers punter Max McGee. It proved a hit, and the Mexican restaurant became a chain, successfully launching into areas such as Cincinnati and Indianapolis. It all came tumbling down in 2004, however, following a hepatitis A outbreak linked to the complimentary salsa at a Pittsburgh location.
Most people assumed that was the end of Chi-Chi's story – until a twist in the tale revealed itself in early 2025. That's when Hormel Foods, the owner of the Chi-Chi’s trademark, unveiled a plan to relaunch Chi-Chi's with the help of the co-founder's son, Michael McDermott. The specific locations, menus and details have yet to be announced, but it seems Chi-Chi's is making a comeback.
Gourmet Burger Kitchen, which had more than 60 locations across the UK and Ireland, suffered in the face of growing competition and underwent major restructuring in 2018. The chain, known for juicy burgers loaded with various gourmet toppings, began to see an upturn in its profits before the COVID-19 pandemic hit, devastating much of the hospitality industry. Its owner, South African company Famous Brands, started the administration process in summer 2020.
Boparan Restaurant Group acquired the brand in a rescue deal, having previously taken over several other casual dining chains from insolvency. The restructuring preserved only 35 of the original 61 sites, but fans were relieved to see this Antipodean-inspired burger joint continue operating. During the UK lockdowns, the restaurants pivoted to delivery before fully reopening in 2021. As of early 2025, 28 locations remain across the UK.
The curtains very nearly fell forever at this iconic diner on Broadway. Badly hit by the COVID-19 pandemic, which shut down the area’s famous theatre scene as well as forcing eateries to close during lockdown periods, the 1950s-themed diner – known for its singing waiting staff – faced eviction. In July 2020, the diner was warned that it would be forced to close unless it paid the $618,000 (£452,000) owed to its landlord.
Management launched a crowdfunding campaign to raise money to help out-of-work employees, and it was a relief that the diner, which has been a popular stop since 1987, was able to reopen. The joint remains the perfect spot for visitors to New York City who can't afford the astronomical Broadway prices but do want to have that Broadway experience.
In 2002, Vapiano was founded in Hamburg, Germany, with its restaurants serving Italian-style pizza and pasta prepared in signature open kitchens. At its peak, the global chain had more than 230 restaurants – including part-franchised locations – across more than 30 countries, with a large presence in the UK and six restaurants in the US. The COVID-19 pandemic hit the already struggling chain hard, and the publicly traded company applied for insolvency in April 2020.
A group of investors swooped in and saved the chain, buying the bulk of the business, including restaurants operated by Vapiano and the franchise business (although the franchised restaurants themselves were not included in the deal). Now, diners in 32 countries around the world can once again feast on house-made pizzas, fresh pasta dishes and platters of antipasti.
Neighbourhood brasserie Bellanger was opened in Islington, North London, in 2015 by major restaurant group Corbin & King, whose portfolio includes icons such as The Wolseley in Piccadilly. Despite opening to rave reviews, the French-style restaurant struggled to pull in enough customers. In August 2019, Jeremy King announced Bellanger would close, stating, "Much as it had been a great critical success, this wasn’t matched financially."
But, despite the COVID-19 pandemic causing huge losses in the hospitality industry, Corbin & King bucked the trend by reopening Bellanger in August 2020. The decision was made after a local survey received 4,000 responses from people who wanted the restaurant back. Its new incarnation has a less formal, more relaxed style akin to a Parisian café.
The blue awnings of Carluccio’s are a familiar sight in the UK and especially around London, where the original Covent Garden spot was founded by the late, legendary restaurateur Antonio Carluccio in 1991 as an Italian food shop. The chain operated separately from the flagship restaurant, which was forced to close by developers in 2012, but faced its own struggles in the face of growing competition, exacerbated by the COVID-19 crisis. It went into administration in March 2020, soon after the first national lockdown was announced.
Boparan Restaurant Group saved Carluccio’s in a last-minute rescue deal. The group, which already owned casual dining chains including Giraffe and Ed’s Easy Diner, still operates around 22 restaurants today. Nothing about the concept or feel of the place changed as it continues to honour its Italian heritage.
This Newport institution claims to be the oldest operating restaurant in the US, the 10th-oldest restaurant in the world and... home to a resident ghost. But it might not be around today at all had it not been for determined efforts to preserve its history. The White Horse was opened by William Mayes, Sr in 1673, and it's his son – a pirate who inherited ownership – whose ghost some say lingers around the bar. But by the mid-20th century, the neglected building faced demolition.
Generous donations allowed the Newport Preservation Society to undertake restoration efforts, saving the 17th-century maroon building and allowing it to safely reopen as a tavern in 1957. It’s now a protected structure, placed on the National Register of Historic Places in 1972, allowing people to continue enjoying dishes such as clam chowder and huge burgers.
Newcastle upon Tyne is known for its medieval streets and equally old taverns, and Blackfriars Restaurant claims to have the oldest dining hall in the UK. Its banquet hall dates back to the 13th century and was used by King Edward III to welcome Scottish royal, Edward Balliol, to the city in 1334. The building – originally home to the Dominican Order or Black Friars – fell into disrepair after Henry VIII ordered the dissolution of monasteries in the 16th century.
The church itself was flattened and later rebuilt, and for centuries the priory buildings were looked after by tradesmen who were granted use of them. The site was restored in the 1970s and housed various businesses before returning as a place of feasting in 2001. Andy and Sam Hook opened it as a restaurant, refurbishing it in 2010. The main dining room serves refined pub grub, while the banquet hall – with dark wood, chandeliers and intricate wall coverings – usually hosts weddings and events.
Known for generous portions and oversized coffee cups, this Belgian-owned café is popular for breakfast, lunch meetings and just grabbing a drink and a pastry. But it was struggling even before COVID-19 hit, with increasing competition and mounting debts. Restaurant closures due to the pandemic exacerbated its issues, and reports in April 2020 claimed that the chain was on the brink of collapse. The US arm, PQ New York, filed for bankruptcy a month later.
New York-based restaurant operator Aurify Brands snapped up the 98 US locations and initially planned to reopen at least 35, rehiring roughly half of the employees who lost their jobs early in the pandemic. Elsewhere, the newly formed company BrunchCo bought 15 of the 26 UK locations, although all but one of those are now closed. Reportedly, 260 outlets remain open around the world with the famed bread still at the centre of the offering.
Chef Greg Sonnier and wife Mary opened Gabrielle in 1992 and quickly won widespread praise for Creole and Cajun dishes like rich gumbo and barbecued shrimp. Their signature slow-roasted duck inspired an entire feature in The New York Times newspaper, and Greg was a finalist in the 2005 James Beard Awards. Just months later, Hurricane Katrina hit, followed by devastating floods. The restaurant was damaged, and the couple sold the building.
Despite many other setbacks, the Sonniers didn’t give up on their dream of reopening Gabrielle – and they eventually did in late 2017. The new location is near Mid-City, a little outside the centre, and the building was painted in the same bold shades of blue and yellow as the original Esplanade Avenue spot. They also combed through old menus to decide which dishes to bring back, with the duck dish (pictured) among the returning favourites.
People have huddled over platters of cheese and charcuterie at The French House since the late 19th century. Over the years, it's hosted poet Dylan Thomas, artist Francis Bacon and former French president Charles de Gaulle, who used it as his unofficial headquarters while exiled during World War II. So when the Grade II-listed building, a stalwart of London’s Soho, faced possible closure due to lost income during the COVID-19 pandemic, the city nearly lost an icon.
The Dean Street favourite, known as Soho’s 'village pub' with a dining room upstairs, launched a crowdfunding campaign in May 2020. The aim was to raise £80,000 ($109,000) to save what the GoFundMe page described as one of “the last bastions of old Soho.” They exceeded the original target and opened up fully again when lockdowns ended.
Pretty much everyone who grew up in the US – or watched American TV shows and movies – will be aware of Chuck E. Cheese, the classic kids’ birthday treat location. But the party was nearly over for the fun family restaurant chain, which had around 600 locations across the US and in several other countries. Parent company CEC Entertainment, which also owns Peter Piper Pizza and was bought by private equity firm Apollo Global Management in 2014, suffered due to COVID-19 and declared bankruptcy in June 2020.
The company reported that same-store sales dropped 21.9% during the first quarter of that year, which is usually its busiest period. However, kids (and parents) breathed a sigh a relief as Chuck E. Cheese emerged from bankruptcy proceedings in early January 2021 with a financial restructuring plan and reduced debt. Around 470 restaurants remain in the US and Canada.
Cafe Milano is a legend in Washington DC. The spot was founded by Italian immigrant and restaurateur Franco Nuschese in 1992 and has been a hotspot for VIPs ever since. It oozes chic charm: think delicious upscale Italian dishes, décor styled like a Milan boutique and a room inspired by and named after opera singer Placido Domingo. But the COVID-19 pandemic hit hard, and the restaurant had to close and lay off staff as it considered its future.
Cafe Milano’s beloved place in the hearts of its regulars is what saved it. The restaurant – which has a second location at the Four Seasons in Abu Dhabi – launched a GoFundMe campaign in March 2020 to raise money to support its workers and quickly exceeded its initial target of $75,000 (£55,000). People were also able to purchase gift certificates, with all proceeds going towards the same Team Relief Fund. The restaurant reopened in late 2020 and is now thriving.
Casa Bonita opened in Oklahoma City in 1968, created by entrepreneur Bill Waugh as a one-of-a-kind dining experience blending Mexican food with theatrical entertainment. Its most iconic location opened in Lakewood, Colorado, in 1974, featuring cliff divers, mariachi bands, puppet shows and an indoor waterfall. It quickly became a beloved cultural landmark and was recognized by the Lakewood Historical Society in 2015. The whimsical restaurant chain closed during the COVID-19 pandemic, ending an era of immersive, family-friendly dining that had made Casa Bonita truly unique in American restaurant history.
But the unlikeliest saviours arrived in 2021 when South Park creators Trey Parker and Matt Stone purchased Casa Bonita's Lakewood site. It turned out the pair had great memories of the place from their childhood. The exterior of the restaurant was repainted (using more than 400 gallons of pink paint) and the location reopened in 2023. It remains the only Casa Bonita still operating.
Pizzeria chain Sbarro was founded in Brooklyn, New York, in 1956 and today has around 600 Italian-style restaurants worldwide, with its biggest presence still in the US. But it certainly hasn’t been a smooth ride, with the company filing for bankruptcy twice – first in 2011, when it underwent a reorganisation, and again in 2014. The restaurants are primarily found in shopping malls, and it was suggested this reliance – along with losing its focus by expanding its menu too widely – led to its downfall.
It was saved from oblivion the second time by new buyers including David Karam – who stepped in as CEO – and private equity firms. After a few false starts, Sbarro went back to its roots as a by-the-slice pizza seller for the 'impulse' market (i.e. those who can’t resist the waft of dough, cheese and tomato). It’s even opening new stores, with a handful of locations across the UK.
In early 2025, CNN dubbed Chili’s “America’s hottest restaurant,” marking a dramatic turnaround for the 49-year-old chain. Once facing steep decline as casual dining brands shuttered locations nationwide, Chili’s found new momentum after Kevin Hochman became president in 2022. As CEO of parent company Brinker International, Hochman revamped menus, modernised operations and reignited the brand’s nostalgic appeal.
A $400 million (£296m) investment saw Chili's get a refreshed, slimmed-down menu, renovations throughout its restaurants and more staff. The result was better tasting food – with the chicken tenders and French fries receiving particular attention – and better value and service for customers. Diners came flocking back to the chain, with one analyst claiming Chili's pulled off one of the best turnarounds of all time in the restaurant industry.
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Last updated by Luke Paton.