The owner of high-end steak house, 801 Chophouse, has filed for bankruptcy protection, highlighting mounting pressure on restaurants as food costs rise.
801 Restaurant Group LLC filed for bankruptcy in the US Bankruptcy Court in Kansas City, according to reports by the Des Moines Register.
Court filings show the company listed between $10 million and $50 million in assets and liabilities.
The company did not provide a specific reason for the filing but plans to restructure its debts while continuing operations.
The move comes as beef prices surge across the United States. Data cited by WIBC Radio shows steak prices have risen 16 percent to $12.73 per pound, while ground beef has climbed to $6.70 per pound.
The increase is partly driven by a shrinking cattle herd, which has fallen to its lowest level in 75 years, according to US Department of Agriculture data reported by the Texas Farm Bureau.
801 Chophouse operates eight locations across major US cities. One affiliated restaurant in Minneapolis has already closed as the company navigates financial challenges.
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