World of Beer to focus on growth post-bankruptcy

World of Beer Bar & Kitchen, the brew pub chain founded in Tampa in 2007, has emerged from bankruptcy about five months after filing for Chapter 11 with plans to expand over the next several years.

According to a Dec. 23 news release, the company was able to restructure its debt during the process and is “bullish on its future.”

A large reason for that, the company says, is a continued interest from potential franchisees which has led it to forecast opening four to five franchise locations annually over the next five years.

That process has already begun. According to the statement, World of Beer opened a new restaurant Dec. 21 in Fort Worth, Texas, and is scheduled to open a location in Annapolis, Maryland, early this year.

World of Beer filed for bankruptcy Aug. 2 citing $10 million to $50 million in assets and $10 million to $50 million in liabilities. 

The bankruptcy was caused by rising interest rates and rent costs, as well as higher operating costs and a slow recovery from the pandemic, according to the industry publication Nation’s Restaurant News.

World of Beer was founded locally in 2007 by friends Scott Zepp and Matt LaFon as a neighborhood gathering spot for beer lovers.

In 2013, they sold the majority of the company to Paul Avery, a former executive with Outback Steakhouse’s parent company.

Avery, according to a 2018 story in the Business Observer, added food and spirits to the menu and lead a redesign of the interiors in many locations.

He also focused on growth.

In 2016, the company opened a location in Shanghai. And two years later it brought on a pair of executives — Raymond James investment banker Kevin MacCormack and Hard Rock International executive James Buell — to help grow its franchise model.

By 2019, it was operating 65 locations in 20 states and three countries.

But the company that filed and came out of bankruptcy is far leaner than the one that made headlines because of its growth.

According to Nation’s, the company’s 2023 sales fell 13% to $53.6 million over the previous year and its store count fell 12.5%. It finished 2023 year with 42 locations.

Today’s World of Beer, despite its current growth plans, operates 31 restaurants, mostly in the South and along the East Coast.

Avery, in the December statement says that the company’s “emergence from Chapter 11 places WOB on a solid path for long-term success — while maintaining the quality of the WOB Bar & Kitchen experience.”

He adds that the company will “remain deeply committed” to customers, employees and franchises while “driving innovation and growth in a competitive market.”