A community may be able to support one or two of a certain type of business, but when one company is successful, it is natural for copycat firms to enter the space. There is only so much new demand that can be created, and at some point, oversaturation can cause multiple businesses to fail.
In some ways, that’s what’s going on with Uber and Lyft. Although both companies provide a necessary service, their pricing is restricted not only by the cost of cabs and car services, but also by the existence of each other.
If Uber charges more than Lyft, a certain amount of customers will simply use the other brand. It’s a vicious cycle that often ends in both companies merging or going out of business.
Too much competition can drive restaurants out of business, and that’s part of what pushed Bennigan’s, a once-booming chain, to the brink of extinction.
Back in the early 2000s, Bennigan’s American take on an Irish pub was a fast-growing chain that boasted over 300 restaurants. The company collapsed, however, due to market conditions somewhat beyond its control.
“These restaurants share many subtle and complex challenges that extend beyond this difficult economic climate,” then Technomic President Ron Paul told MarketWatch Money Morning. “To some extent, they have become victims of their own success – a mature category with many units and not enough differentiation, at least in the eyes of consumers.”
With so many similar options in the casual dining restaurant market, consumers have little incentive to choose Bennigan’s over similar competitors such as TGI Fridays or Ruby Tuesday Inc., the website shared.
“All these bar and grill concepts are very, very similar,” Technomic’s former Executive Vice President Bob Goldintold The New York Times, according to Kiplinger. “They have the same kind of menu, decor, appeal,” which makes it more difficult to establish brand loyalty among customers.
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Bennigan’s was a quick success story, but her collapse and near death was also sudden.
“Known for its happy hours more than its food, the chain almost suddenly collapsed in 2008 was epic: its owner filed for Chapter 7 liquidation, shuttering the 150 corporate-owned restaurants during the night (more than 100 franchises survived), as well as all the Steak and Ale restaurants.
Bennigan’s was founded in 1976 (first location in Atlanta, Georgia).
At its peak, Bennigan’s “had more than 300 restaurants.”
In 2008, when its parent company filed for bankruptcy (Chapter 7), Bennigan closed all 150 corporate-owned locations almost immediately. Source: Kiplinger
At that time, there remained a number of franchise property Bennigan’s – but many of those locations slowly closed over the following years. Source: Mashed
By the early 2010s, as the chain attempted a revival under new ownership, Bennigan’s had already dropped to only a few dozen places. Source: Restaurant News Resources
Over time, additional closings further reduced the number of surviving restaurants.
In 2015, a new owner (through Legendary Restaurant Brands, LLC) acquired the Bennigan’s chain and its sister (Steak and Ale), with the aim of reviving the brand.
The revival included not only the attempt to re-establish dine-in restaurants but also the launch of a “fast-casual/limited-menu” concept called Bennigan’s On The Fly, a version designed for non-traditional locations (casinos, airports, ghost kitchens, food halls, etc.).
The current count includes 21 full Bennigan’s “brick and mortar” restaurants.together 21 Bennigan’s On The Fly units. Source: Bennigans.com
While more than 275 classic Bennigan’s locations have closed, Legendary Restaurant Brands has plans for a comeback. That comeback, however, is not necessarily focused on the United States.
“Bennigan’s, the iconic American brand known for its Legendary food, warm hospitality, and globally recognized franchise model, is preparing for a significant wave of expansion in the Gulf Cooperation Council (GCC). This strategic growth includes a major commitment to open multiple Bennigan’s and Bennigan’s On The Fly locations in Qatar over the coming years through its long-term partnership with the company Novterling Group. 20 press release.
Taste of Country noted that Bennigan’s was poised for a comeback in an October article.
“New ownership is modernizing the menu, bringing back the signature decor, and turning to ‘experiential dining’, creating casual and communal meals that feel familiar and fun. A few locations have already reopened in urban and suburban areas, and the laid-back atmosphere is just like fans remember,” the website reported.
Legendary Restaurants is actively seeking new franchise operators.
“With a renewed focus on improving the business climate and reducing regulations, these franchise formats – full service steakhouse, hybrid and casual – ensure adaptability,” CEO Paul Mangiamele said in a press release. “By offering proven business models, we are empowering franchisees to realize their personal vision of the American Dream.”
Related: Popular burger chain suddenly closes locations nationwide
This story was originally published by TheStreet on November 27, 2025, where it first appeared in the Restaurants section. Add TheStreet as a Preferred Source by clicking here.
