Razzoo’s Inc., which operates Razzoo’s Cajun Cafe, has filed for bankruptcy in a move it said reflects the restaurant industry’s ongoing financial challenges as other U.S. seafood-focused restaurant chains continue to expand and benefit from shifting consumer spending habits.
In its bankruptcy filing in the U.S. District Court of Southern Texas, Addison, Texas, U.S.A.-based Razzoo’s said it owes USD 3.1 million (EUR 2.6 million) in unsecured trade debt. While the operator of around 23 seafood boil restaurants doesn’t list seafood companies among its top creditors, it does say it owes Sysco Food Services of Dallas more than USD 1.37 million (EUR 1.2 million).
The company said it experienced a decline in sales due primarily to shifts in consumer spending habits; shifting consumer preferences for convenience, affordability, delivery and innovation "in part attributed to the impact of COVID-19 on consumer behavior, general market conditions, geopolitical and economic uncertainty,” and heavy media presence and discounting from competitors in the casual dining space.
Inflation and higher interest rates have caused Americans to “trade down” to fast-casual or quick-service restaurants in order to stretch their budgets, Razzoo’s said in the filing.
“Recognizing this, many key competitors such as Chili’s and Applebee’s have utilized aggressive marketing and value-oriented promotions which have negatively influenced Razzoo’s guest traffic,” the company said.
Another factor leading to the bankruptcy filing was lower crawfish prices this year.
“As a Cajun-inspired brand, sales at Razzoo’s fluctuate seasonally, and typically reach their peak during crawfish season. Despite the crawfish season starting earlier in 2025 than 2024, increased competition for crawfish drove retail selling prices down and the debtors experienced a decrease in sales this season relative to prior years,” Razzoo’s said.
Razzoo’s owes around USD 650,000 (EUR 555,000) in monthly lease obligations to landlords. To save money on rent, the company closed three locations in September: Pasadena, Texas; Corpus Christi, Texas; and Oklahoma City, Oklahoma.
The bankruptcy filing is a sign of the times for the U.S. restaurant industry, which included Hooter’s filing for bankruptcy earlier this year and closing numerous restaurants.
More recently, Opa! Authentic Greek Cuisine, which previously operated five restaurants in California, filed for bankruptcy and closed all of its locations. Additionally, Exton, Pennsylvania, U.S.A.-based Iron Hill Brewery closed all 16 of its restaurants amid bankruptcy rumors, per Restaurant Business.
However, several seafood-focused restaurant chains – including those featuring Cajun cuisine – are expanding rapidly across the U.S.
Irvine, California, U.S.A.-based Pokeworks, which operators 72 poke restaurants across 20 states, Taiwan, and Canada, is growing its locations as well as its customer base. The brand opened six new locations in the first half of this year, and will open 10 additional restaurants by the end of the year.
Additionally, in the first seven months of the year, the brand realized double-digit loyalty sales growth.
Cerritos, California, U.S.A.-based GEN Restaurant Group, operator of GEN Korean BBQ, recently opened its 22nd restaurant in California. The operator of 56 company-owned locations has an extensive menu of traditional Korean and Korean-American food, including “high-quality meats, poultry, seafood and mixed vegetables,” the company said.
GEN Restaurant Group also recently opened its fifth and sixth restaurants in South Korea.
Nashville, Tennessee, U.S.A.-based Captain D’s, which operates 530 restaurants, recently opened its first location in Ocala, Florida, U.S.A., a suburb of Orlando.
"Ocala represents a key growth market for Captain D's as we expand across Florida," Captain D’s Chief Development Officer Brad Reed said.
Baton Rouge, Louisiana, U.S.A.-based Off the Hook, which says it is a Cajun “quick casual” operator, recently appointed three executives to oversee its growth. It named John Lush as chief operating officer; Bailey Richard as director of marketing, communications and compliance; and Randy Gross as director of operations. It currently operates eight restaurants.
The spate of closings for some restaurants and openings for others continues an ongoing trend in 2025, where some individual chains are struggling due to spending shifts while others are banking on seafood to continue growing.
