Pizzaria Uno Short on Dough

With some 76 franchised pizzarias and 118 company-owned units, Pizzaria Uno Chicago Bar and Grill announced yesterday that it is likely to miss a bond payment on Friday. It would then need to avoid bankruptcy. Franchising since 1979, the chain anticipates being able to defer its upcoming $7.5 million interest payment for a month. Should it fail, the franchisor would be yet another recent private equity-backed chain to file for bankruptcy protection.

The WSJ comments that casual dining franchisors that are going under are increasing.

During the first half of 2008, same-store sales at midpriced sit-down restaurants declined an average of 1.1%, according to Knapp-Track, which measures sales at 10,000 restaurant outlets.

In the last few months, sit-down chains such as Bennigan's, Steak and Ale, and Vicorp Restaurants Inc.'s Bakers Square and Village Inn chains have filed for liquidation or bankruptcy protection, frequently moving to shutter hundreds of sites and cut thousands of jobs.

"Those other restaurants that filed, their concepts haven't remained relevant. Ours has," said Uno's Mr. Psallidas.

Long known for deep-dish, Chicago-style pizzas, Uno moved in recent years to a more expansive menu of grilled, fried and sautéed fare, including Angus beef steaks and Bolognese pasta, and drinks such as pomegranate margaritas.

Read full details at the Wall Street Journal

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