True Food Kitchen has permanently closed its Reston Town Center location after more than five years in business.
The health food chain announced yesterday (Monday) that it has filed for bankruptcy to kick off a restructuring process that involved shuttering 12 restaurants, including ones in Reston and Bethesda. The affected locations had their final day of service on Sunday (Oct. 4).
A closure notice posted to the Reston restaurant’s door at 11901 Democracy Drive expressed gratitude to employees and customers “for your support and for the many moments we’ve shared around the table,” The Burn reported.
“We know these decisions are especially hard on the team members affected, and we are deeply grateful for their contributions to True Food Kitchen and their communities,” True Food Kitchen CEO Jeff Chandler said in a press release. “We are committed to approaching this difficult moment with care and respect, and we will share information on resources and next steps with affected team members.”
True Food is still operating 34 restaurants across 14 states, including two in Virginia. That includes the Mosaic District outpost (2910 District Avenue, Suite 170) in Merrifield and one in Arlington’s Ballston Quarter.
A consultant for Teneo — a public relations firm hired to provide communications and financial advice during the restructuring — said they had no information to provide about the decision to close the Reston restaurant beyond what was in True Food’s press release. But they confirmed that the Merrifield location “remains open and is serving guests as usual.”
According to court documents, True Food’s efforts to expand over the past decade were undermined by “significant” leadership turnover, resulting in frequent pivots in strategy and menu offerings, and the impacts of the COVID-19 pandemic.
“While many of the Restaurants are profitable and occupy highly desirable locations, several Restaurants have struggled,” Nathan Cook, Teneo’s head U.S. financial advisor and True Food Kitchen’s chief restructuring officer, wrote in a declaration supporting the bankruptcy filing. “Some are in areas with lower-than-anticipated foot and driving traffic, while others were impacted by changing market forces and demographics that led to steady decreases in profitability over time.”
Founded in Phoenix, Arizona, in 2008, True Food Kitchen serves burgers, pizza and other American food, such as steak frites and jambalaya pasta, with an emphasis on real, nutritious ingredients.
The company made its East Coast debut at the Mosaic District in September 2014 but didn’t expand to Reston until April 2021. Filling a 9,379-square-foot corner storefront vacated three years earlier by McCormick and Schmick’s Grill, True Food’s Reston Town Center location featured murals by artists based in the D.C. area.
According to Cook’s declaration, True Food took a number of steps to address its “financial distress,” including hiring Chandler as its new CEO in July and retaining Teneo to evaluate its business plan, before filing for bankruptcy.
True Food Kitchen and eight debtors filed voluntary petitions for relief under Chapter 11 yesterday in the U.S. Bankruptcy Court for the Southern District of Texas, which will supervise a potential sale to “a long-term partner with the resources and mission alignment to support the brand’s future,” the press release says.
The company says it has secured approximately $20 million in financing from HumanCo, which previously helped raise more than $100 million to support True Food’s expansion, so it can continue operations during the court proceedings.
Combined with cash generated by the remaining restaurants, the funding, if approved by the courts, will enable True Food to keep paying employees and working with vendors and other business partners, per the press release.
“This process is the best path forward to simplify the business and focus on what we do best: delivering craveable, health-forward food and genuine hospitality,” Chandler said. “We are confident this step will help us build a stronger True Food Kitchen for the future.”
Hat tip to Adam Rubinstein
