Oprah-backed restaurant chain True Food Kitchen files for bankruptcy and shuts locations – as $42million in debt piles up

It had Oprah in its corner, a menu packed with virtuous superfoods and more than $100 million in investment – but none of it could save True Food Kitchen from a financial hangover.

The Phoenix-based restaurant chain has filed for Chapter 11 bankruptcy protection and permanently closed 12 locations as it grapples with around $42 million in debt.

The closures represent roughly a quarter of its previous footprint, with restaurants in California, Miami, Chicago, New Orleans, Maryland, New Jersey, New York, Ohio and Virginia among those affected.

However, the company says its 34 remaining restaurants will continue operating as it attempts to restructure the business.

Chief executive Jeff Chandler said the move was the best way to simplify the company and concentrate on its ‘craveable, health-forward food’ and hospitality.

True Food Kitchen is now pursuing a court-supervised sale and looking for a long-term buyer or financial partner while it restructures its finances.

It has also secured a $20 million commitment for debtor-in-possession financing from HumanCo, which is intended to help keep the business running during bankruptcy proceedings.

Court filings put the company’s debt at approximately $42.1 million, with True Food Kitchen blaming its financial problems on management turnover, strategic missteps, expansion decisions and other challenges.

The chain’s troubles mark a dramatic reversal for a restaurant brand that was once attracting serious celebrity and investment attention.

True Food Kitchen was founded in Phoenix in 2008 by restaurateur Sam Fox and Dr Andrew Weil, whose anti-inflammatory food philosophy became the foundation for the concept.

The idea was simple enough: serve food designed around wellness without making diners feel as though they were eating rabbit food.

Its menu has included everything from salads and grain bowls to burgers, pizzas, sandwiches and seasonal entrees, alongside juices, smoothies and cocktails.

Among its popular dishes are the Ancient Grain Bowl, Teriyaki Quinoa Bowl and Organic Tuscan Kale Salad, all of which lean heavily into the chain’s healthy-eating credentials.

Even its burgers get the wellness treatment, with options including grass-fed beef and a vegan burger made with mushrooms, beet and walnuts.

But the biggest celebrity name attached to the brand is undoubtedly Oprah Winfrey, who invested in True Food Kitchen in 2018 and joined its board.

Winfrey said at the time that she had been impressed by the food and the company’s approach to healthy eating after visiting one of its restaurants.

Her reported favorite order was the Organic Tuscan Kale Salad, accompanied by a Thai grapefruit martini.

Former Starbucks chief executive Howard Schultz has also been among the company’s investors, while celebrity investors Nick Jonas and Priyanka Chopra Jonas were involved in a later funding round.

In 2022, True Food Kitchen raised more than $100 million from investors led by HumanCo and Manna Tree as it looked to expand the brand.

At the time, the company had 42 restaurants and was planning further growth, including smaller-format locations.

Instead, four years later, it has been forced to shrink its restaurant estate and seek protection from creditors.

The chain has not disclosed the profitability of individual restaurants, while its bankruptcy filing points to problems including costs, management changes and investments that did not deliver as hoped.

The restaurant industry has also been dealing with rising food, labor and occupancy costs, making it increasingly difficult for chains to keep prices attractive while protecting their margins.

Online, some diners have already been weighing in on whether True Food Kitchen’s healthy credentials were worth the price tag.

On Reddit, one Boulder customer called the food bland and the prices excessive, while another said they had eaten at a Houston location and thought it was ‘pretty good.’

Other Boulder diners complained about noise and disappointing experiences at the new location, although another customer said the food was good but admitted the prices were underwhelming.

One fan, however, exclaimed: ‘Damn, this place was good!’ 

For now, the remaining 34 restaurants are staying open as True Food Kitchen attempts to find a buyer and cook up a second act.