Quality Fresca Files Chapter 11 as Fast-Food Bankruptcies Hit Their Worst Pace Since 2020

Quality Fresca I, LLC, the operator of 38 Moe’s Southwest Grill restaurants, filed Chapter 11 on August 4, 2026 in the U.S. Bankruptcy Court for the Southern District of Florida, citing rising food and shipping costs alongside falling post-pandemic foot traffic.

Why it matters: Suppliers to fast-food chains are recovering little in 2026’s bankruptcy wave; confirm your credit limits now.

What triggered the Quality Fresca filing

The filing followed years of cost pressure that outpaced the chain’s recovery from its 2020 buildout.

• Quality Fresca held $44 million in assets against $52 million in liabilities as of December 31, 2025, after peaking at 69 locations in 2021.
• The company closed 31 underperforming stores between 2021 and 2026 before seeking court protection.
• An affiliated lender holds roughly $16 million in secured debt ahead of the company’s trade creditors, who are owed about $2.1 million.
• Approximately 600 employees remain on staff as Quality Fresca seeks a buyer or a reorganization plan.

Fast-food bankruptcies are running at their fastest pace since 2020

Quality Fresca is one of roughly 700 dining operators to file Chapter 11 in 2026, a pace Bloomberg Law reports is on track to exceed 2020’s pandemic-driven surge.

• Popeyes franchisee Sailormen Inc. filed Chapter 11 in January 2026 owing $130 million to BMO Bank after defaulting on its credit facility.
• Hardee’s operator Superior Star LLC and Carl’s Jr. franchisee Sun Gir Inc. each filed for Chapter 11 in 2026, citing food-cost inflation and California’s $20-an-hour minimum wage.
• Wendy’s closed 289 U.S. locations year-to-date after a 7% decline in second-quarter same-restaurant sales.

What unsecured suppliers recovered in similar fast-food filings

Trade creditors in comparable fast-food bankruptcies have ranked behind secured lenders, and Quality Fresca’s vendors face the same order.

• In the Sailormen case, food distributor Cheney Brothers held an unsecured claim of more than $623,000 with no guaranteed recovery.
• Foodservice distributor Sygma Network carried an unsecured claim above $253,000 in the same filing.
• Quality Fresca’s $2.1 million owed to vendors, suppliers, and landlords sits behind $16 million in secured affiliate debt, subject to credit limits, notification requirements, and policy terms in place at the time of the filing.

What to do now

Suppliers to Quality Fresca and other 2026 restaurant-sector debtors have specific, time-bound recovery options.

1. Confirm your outstanding invoices with Quality Fresca and file a proof of claim before the bankruptcy court’s bar date.
2. Reassess credit limits on remaining restaurant and franchise accounts given the sector’s rising bankruptcy pace.
3. Review whether your existing trade credit insurance policy extends to restaurant-sector receivables, subject to credit limits, notification requirements, and policy terms in place at the time of the filing.
4. Watch remaining concentrated restaurant and franchise buyers for the same early payment-behavior signals that preceded this filing.
5. Contact Securitas Global Risk Solutions to review your exposure to fast-food and franchise accounts.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.