When New Jersey restaurant chain Carmel Restaurants closed its doors due to budget cuts
Carmel Restaurant Holdings, one of the most well-known brands in New Jersey, has announced that it will close its doors on March 20.
The company has said that it was unable to meet its sales projections.
Carmel CEO Richard Sussman was able to announce the decision in a letter to employees and the community.
“Carmel Restaurant and its franchisees are the most diverse restaurant groups in the country and we have struggled to compete with some of the biggest brands in the world,” Sussmann wrote.
“We are confident that the continued growth of Carmel will continue to drive our success and will continue our momentum as we expand our menu and grow our brand.”
The company announced in January that it would stop using a contract to pay its employees and would use a payroll-based model instead.
The restaurant group said it would invest $3.5 million into a restaurant in Philadelphia, Philadelphia’s largest city, and $1 million into two more locations in New York City and Philadelphia.
Sussmans announcement follows a tumultuous year for the chain, which has seen its shares drop nearly 10% since the end of March.
In a statement, Sussmen said the decision was not based on a change in management.
“While we are confident in our ability to deliver the kind of results that we have, we are unable to do so due to the impact of our difficult financial conditions,” Sommers statement read.
“This decision was made to preserve Carmel’s brands and its future as an innovator and to make sure that Carmel remains a positive part of our communities and community-based businesses.”
Carmel is one of several major restaurant chains to shut down in the last year, including Chipotle Mexican Grill and Papa John’s Pizza.
Earlier this year, Papa John Schnack introduced a new “Papa Jack” sandwich, which includes the word “Jack” in a neon-green font.
Carmels closing was a sign that the restaurant industry was facing a challenging period, said Amy Belsky, a food business analyst at Zillow.
“People are going to go out and find places that are better than what they used to be,” she said.
“There are going