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Franchisee Of 146 Waffle Houses Files For Bankruptcy

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By MICHAEL SASSO | The Tampa Tribune

Published: November 25, 2008

Updated: 11/25/2008 12:57 pm

TAMPA - The days may be numbered for "scattered, covered and smothered" hash browns at Waffle House. The iconic roadside grill's biggest franchisee has filed for bankruptcy protection.

The action escaped attention locally, but a company called Northlake Foods Inc. of Brandon, which operates 146 Waffle Houses in Florida, Georgia and Virginia, filed for Chapter 11 bankruptcy protection in mid-September. Chapter 11 allows a company to reorganize its finances while protected from its creditors.

According to its bankruptcy filing, 90 of Northlake Foods' Waffle House locations are in Florida, but it wasn't immediately clear how many local restaurants it controls, if any.

The company filed for bankruptcy because Waffle House Inc. of Norcross, Ga., was threatening to terminate the franchise agreement that gives it the right to operate the restaurants, the bankruptcy filing says.

Northlake has other problems, too, according to the filing. The company is short of cash, has suffered from declining sales and has seen its costs rise because of increases in the minimum wage.

It lists assets of $10 million to $50 million and liabilities in the same range.

Calls to Northlake Foods President Daryl Saylor and the company's bankruptcy attorney, Roberta Colton of the Trenam Kemker firm, were not returned Monday. A spokeswoman for Waffle House Inc. referred a call to Northlake.

Northlake has about 3,000 employees, the bankruptcy filing says.

At least one other big Waffle House franchisee has filed for bankruptcy in recent months. SouthEast Waffles of Nashville, which controls more than 100 Waffle Houses in the Southeast, filed for Chapter 11 bankruptcy protection over the summer.

Reporter Michael Sasso can be reached at (813) 259-7865.

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