Chuck E. Cheese: Will The Fun End?

The future of the kid-friendly entertainment-and-pizza venue, Chuck E. Cheese, was uncertain when its parent company, CEC Entertainment, filed for Chapter 11 bankruptcy protection in 2020. CEC Entertainment planned to permanently close 34 locations, with leases rejected in several states, including California, Florida, and Massachusetts. The COVID-19 pandemic significantly impacted the company, causing it to lose more than 90% of its revenue, and the company also struggled with substantial debt from a 2014 leveraged buyout.

Chuck E. Cheese's parent company CEC Entertainment filed for Chapter 11 bankruptcy protection

On June 25, 2020, CEC Entertainment, the parent company of the entertainment-and-pizza venue geared toward kids, Chuck E. Cheese, filed for Chapter 11 bankruptcy protection. The company, which also owns the Peter Piper Pizza chain, made the announcement on Thursday, attributing the decision to the closure of locations during the coronavirus pandemic.

In a statement, David McKillips, CEC Entertainment's CEO, said:

> "The Chapter 11 process will allow us to strengthen our financial structure as we recover from what has undoubtedly been the most challenging event in our company's history and get back to the business of delivering memories, entertainment, and pizzas for another 40 years and beyond. I am incredibly proud of what the CEC team has achieved over the past year [...] I'm confident in the strength of our team and our world-class brands and look forward to more fully implementing our strategic plan as we put these financial challenges behind us."

CEC Entertainment plans to maintain operations as usual and continue to reopen Chuck E. Cheese and Peter Piper Pizza locations throughout the bankruptcy process. As of June 24, 2020, 266 company-operated restaurant and arcade venues had already reopened for business, with the company expecting to keep these venues open through Chapter 11 and to offer dine-in, delivery, and takeout services. The company's non-U.S. franchise partners and corporate entities are not included in the bankruptcy process.

The Chapter 11 bankruptcy filing will allow CEC Entertainment to work with creditors and landlords to restructure the business and shed debt, with the company expressing hopes to emerge as a more sustainable operation.

CEC Entertainment planned to close 34 locations permanently

CEC Entertainment, the parent company of the entertainment-and-pizza venue geared toward kids, plans to permanently close about 34 locations that were still open when the coronavirus pandemic began. The company filed for Chapter 11 bankruptcy protection, and as part of its bankruptcy plan, CEC Entertainment will close 34 locations. The company has said it hopes to use the Chapter 11 process to shed debt and emerge as a more sustainable operation.

The company, which owns the Chuck E. Cheese and Peter Piper Pizza chains, filed for Chapter 11 bankruptcy protection late on Wednesday, 26 June 2020. Late on Thursday, the company filed a list of about 45 leases it plans to reject, including five in California, four in Florida, four in Massachusetts, three in Ohio, and three in Oklahoma. The list included 11 locations that had already closed before COVID-19.

CEC also requested a judge's permission to continue to honor game credits, tickets, tokens, gift cards, customer deposits, discount offers, and loyalty accounts as long as the company remains in business. The company had 555 company-owned locations and 186 franchise locations in 47 states and 16 countries. Franchisees are not included in the bankruptcy filing.

The 43-year-old chain, which drew kids with pizza, video games, and a singing mouse mascot, was struggling even before the coronavirus pandemic. However, the prolonged closure of many outlets due to coronavirus restrictions led to the Chapter 11 filing. CEC Entertainment has reopened 266 of its 555 company-operated restaurants as restrictions ease. The Irving, Texas-based company said it will continue to reopen locations and offer carryout and delivery while it negotiates with debt and leaseholders.

Locations included California, Florida, Massachusetts, Ohio, and Oklahoma

In 2020, the parent company of Chuck E. Cheese, CEC Entertainment, filed for Chapter 11 bankruptcy protection. CEC Entertainment planned to permanently close about 34 locations that were still open when the coronavirus pandemic began. The company filed a list of about 45 leases it intended to reject, including 11 locations that had already closed before COVID-19.

It is important to note that the list of lease rejections may not equate to permanent closures, as some locations may be relocated or renegotiated. Additionally, Chuck E. Cheese has also opened new locations in the last year, both domestically and internationally.

The company lost more than 90% of its revenue during the COVID-19 pandemic

The COVID-19 pandemic hit Chuck E. Cheese hard. With venues across 47 states and 16 countries or territories forced to close temporarily, the company lost over 90% of its revenue. This was despite efforts to increase food delivery and takeout services. The company fell behind on rent payments at hundreds of locations.

The pandemic was not the only factor contributing to the company's financial woes. In 2014, Apollo Global Management took Chuck E. Cheese private through a leveraged buyout that left the company with substantial debt. CEC Entertainment, the parent company of Chuck E. Cheese, filed for Chapter 11 bankruptcy protection in June 2020. CEC Entertainment emerged from bankruptcy months later with new leadership and freed from about $705 million in debt.

CEC Entertainment's revenue grew from $912 million in 2019 to roughly $1.2 billion in 2023, according to Reuters. This growth is even more impressive considering the company had fewer open locations in 2023. The chain had 470 US locations in 2023, down from 537 in 2019.

The company's future plans include attracting consumers who are eating out less due to rising costs and competing for the attention of children and parents in a fragmented media market. CEO Dave McKillips has stated that the company has spent over $300 million in recent years to address these challenges, and the investment has started to pay off.

Chuck E. Cheese offers takeout and delivery services

Chuck E. Cheese, the entertainment-and-pizza venue geared towards kids, offers takeout and delivery services. The company, which owns the Chuck E. Cheese and Peter Piper Pizza chains, filed for Chapter 11 bankruptcy protection in 2020 due to the impact of the coronavirus pandemic. Despite this setback, Chuck E. Cheese has continued to serve its customers through takeout and delivery options.

During the pandemic, the company lost more than 90% of its revenue, even with increased food delivery and takeout services. The company fell behind on rent payments at hundreds of locations. However, it appears that Chuck E. Cheese has since recovered, with many locations now open and serving customers.

Chuck E. Cheese offers a variety of food options that are perfect for takeout and delivery. Their menu includes pizza, wings, desserts, and drinks. You can build your own pizza, choosing from a range of sizes, crusts, and toppings. They also offer family and party packs, perfect for large groups or special occasions. In addition to their food offerings, Chuck E. Cheese also provides arcade games and other entertainment options for kids.

You can order Chuck E. Cheese for delivery through services like DoorDash, which allows you to browse eligible restaurants, order, and securely pay online. You can even schedule deliveries in advance and track your order in real-time. Additionally, Chuck E. Cheese accepts reservations for dine-in experiences, where you can enjoy their games and attractions along with your meal.

With locations across the United States, Chuck E. Cheese is a well-known destination for family fun and entertainment. Their takeout and delivery services make it convenient for customers to enjoy their favourite meals and create memorable experiences at home. Whether you're planning a birthday party or a casual game night, Chuck E. Cheese's takeout and delivery options have you covered.

Frequently asked questions