The Type Of Restaurant Plagued By Bankruptcy In 2025

When it comes to eating plant-based meals, Americans aren't spending the way they used to — a fact that is seriously hurting plant-based vegan restaurants in 2025. In May 2025, Planta, a vegan restaurant that boasted 18 restaurants across Canada and multiple states, filed for Chapter 11 bankruptcy in an effort to cut costs during a time when people are eating out less often. When filing for bankruptcy, Planta listed between $10 and $50 million in liabilities, but almost no assets to speak of. The company's post-bankruptcy plan states their intention to keep eight locations open: in Maryland, New York, Illinois, California, and Toronto, Canada.

Planta's bankruptcy serves as just one part of a larger trend in which numerous restaurant chains are facing bankruptcy. With a reduced number of customers, and changing dining habits, restaurant chains continue to struggle. This reality has hit vegan restaurants especially hard in 2025 with restaurants like Plum Bistro, Plum Chopped, Sage Regenerative Kitchen & Brewery, Paradox Cafe, and Fair Weather all closing in 2025. Similarly, Neat Burger closed all of its U.K. locations, while Veggie Grill has closed 12 locations — about 40% of their total stores.

Planta and other plant-based restaurants struggling to stay open face another serious challenge: the reduced consumption of healthy food items like fruits and vegetables in America. Per 2021 State of the Plate research (a study conducted once every five years), 9 out of every 10 Americans failed to eat the daily recommended amount of fruits and vegetables. In fact, overall consumption dropped by almost 10% between 2004 and 2021, with a 16% decline in vegetable consumption and a 15% decline in juice intake. 

Prices can be, and often are, a significant factor for American shoppers. With fresh foods tending to cost most, as well as having shorter shelf lives, it's likely this has contributed to the decline in healthy food purchases. Plus, it's worth noting that Trump's tariffs are expected to drive the prices of many fruits and vegetables up. These increased costs ensure that it will no longer be financially feasible for many Americans to prioritize plant-based dining options. This could in turn, cause even more financial strain for vegan restaurants.