A special works council took place at Lunch Garden’s headquarters in Evere this morning. There, the unions received confirmation of what had already become known in recent days: Lunch Garden is filing for bankruptcy, followed by a partial takeover by CIM Capital.
‘This is a particularly tough decision, but it is the only way to build a sustainable future and keep as many jobs as possible,’ Stephan Brouwers, Lunch Garden’s CEO, said in the press release.
There would be a relaunch for 42 of the 62 restaurants. In doing so, the company would like to keep about half of its own staff – some 300 of some 600 people – on board, Brouwers said. There is no clarity yet on the staff of the privatised restaurants.
**Restructuring**
The restaurant chain says it has had ‘challenging’ years. The mandatory closures during the corona pandemic had a ‘profound financial impact that is still being felt’.
Certain sites pulled down the performance of the entire chain, and costs rose due to high inflation and indexations.
Over 800 people still worked at the company at the end of 2023, compared to 1,100 in 2020.
**Fresh money**
While there was ‘a positive trend in sales and operating profit’ over the past 2 years, ‘it proved insufficient to carry the necessary investments’, Lunch Garden said. As a result, shareholder ICG had to keep injecting money, and that was no longer sustainable. Therefore, the company filed for bankruptcy.
At the same time, fresh money was found, with Antwerp-based investment company CIM Capital. CIM Capital was founded 10 years ago by Marc Van Hool, a scion of the family that owned the bus and trailer manufacturer that went bankrupt just last year.
CIM Capital specialises in getting struggling companies out of the doldrums. Four years ago, for instance, the fund took over part of the shops of travel operator Neckermann. And just last year, the fund took over the chic but moribund car event Zoute Grand Prix in Knokke-Heist.
With CIM Capital, Lunch Garden hopes to relaunch as soon as possible, ‘possibly as early as today’. Specifically, the company wants to continue with 42 of 62 restaurants. ‘We are now looking forward to a new phase with a new shareholding to further strengthen Lunch Garden and make it future-proof,’ said even CEO Brouwers.
**From Resto GB to Lunch Garden**
The concept of Lunch Garden originated in the 1960s. Back then, cafeterias were built along the then GB supermarkets, where customers could eat something during their shopping trip. This was done under the name Resto GB.
When GB’s parent company took over the self-service restaurants of chain shops Sarma and Nopri, they continued together under the name Lunch Garden.
The company changed hands a number of times over the past decades and so now it is likely to change again.
**Debts and dilapidated concept**
Where exactly has Lunch Garden gone wrong in the past year? Gino Van Ossel, professor of marketing at the Vlerick Business School, sees 2 major pain points. First, he sees that the company has piled up a heavy debt mountain, partly due to the corona crisis, and that the current shareholder did not want to pump additional money into the company.
In addition, Van Ossel sees a deeper, structural problem. ‘Lunch Garden is a concept from the past that has too little connection to the present,’ he says. People went there after shopping in the nearby supermarket simply because they were hungry. ‘It was tasty and cheap.’
But in recent decades, hijackers have entered the scene, including fast food restaurants. Meanwhile, Lunch Garden has failed to incorporate fun into their formula. ‘Consumers do not think of Lunch Garden for a fun outing,’ he says. And as a result, the sleazy concept no longer appeals to a young audience.
The task now is to reinvent the concept so that Lunch Garden can attract enough customers, Van Ossel said.
Nooo not the Lunch Garden! *hasn’t gone to a Lunch Garden in many years*
(They’re alright, it’s just there’s none nearby)
I like the concept of healthy (as in non-fastfood) for a decent price. Too bad there aren’t too many restaurants offering the same.
Never been, never plan on going.
It just does not appeal to me.
Ah we used to go there so often when I was a kid. But honnestly haven’t gone there in years. It always kinda felt like a time capsule.
Corona really hurt them too. I remember having lunch there before 2020 and getting what felt like half a chicken with great fries and appelmoes, and after the lockdowns they changed their menus and suddenly it was only a small chicken thigh, rather dry, flavourless sauce and dry fries.
But yes, the concept is also very meh, it attracts the old grannies for a cup of coffee, and not much else.
So a relunch?
I actually go there regularly. Easy, not expensive and reasonable value for money. And tastier anyway then quick, mcDo etc.
When my dad was hospitalised for many weeks, I ate there once or twice a week. Not easy otherwise to find something that is not pizza or kebab at 20:00-2030…
I went when itwas still part of GB, fun times eating in what felt like an old people’s home…
I keep threatening my kids to take them there if they don’t eat their brocoli!!!
I would be sad to see it go, it’s part of what makes Belgium Belgium.. a bit like little chef in the UK.
And is it me or are the quick places also disappearing slowly..?
Hurts my soul. It was my to go to place for 35 years. Vol-au-vent at the location closest to us was up there. No faf, no special ingredients, nor tiny videekes to try and impress michelin.
Hope relaunch works out, but I for one would not be asking for a menu revamp. Ain’t nothing wrong with ballekes in tomatensaus or vol-au-vent!!
Never heard of it …. I am a bit confused. I am supposed to know it?
Getting downvoted because I’ve never seen this place. Nice, go /r/belgium tolerance
Not RestoGB!
Went there 10 years ago, ambience was of old age home. Food was ok.
There are 62 and they will keep 42 open, but only 10 are listed. 😅
14 comments
A special works council took place at Lunch Garden’s headquarters in Evere this morning. There, the unions received confirmation of what had already become known in recent days: Lunch Garden is filing for bankruptcy, followed by a partial takeover by CIM Capital.
‘This is a particularly tough decision, but it is the only way to build a sustainable future and keep as many jobs as possible,’ Stephan Brouwers, Lunch Garden’s CEO, said in the press release.
There would be a relaunch for 42 of the 62 restaurants. In doing so, the company would like to keep about half of its own staff – some 300 of some 600 people – on board, Brouwers said. There is no clarity yet on the staff of the privatised restaurants.
**Restructuring**
The restaurant chain says it has had ‘challenging’ years. The mandatory closures during the corona pandemic had a ‘profound financial impact that is still being felt’.
Certain sites pulled down the performance of the entire chain, and costs rose due to high inflation and indexations.
Over 800 people still worked at the company at the end of 2023, compared to 1,100 in 2020.
**Fresh money**
While there was ‘a positive trend in sales and operating profit’ over the past 2 years, ‘it proved insufficient to carry the necessary investments’, Lunch Garden said. As a result, shareholder ICG had to keep injecting money, and that was no longer sustainable. Therefore, the company filed for bankruptcy.
At the same time, fresh money was found, with Antwerp-based investment company CIM Capital. CIM Capital was founded 10 years ago by Marc Van Hool, a scion of the family that owned the bus and trailer manufacturer that went bankrupt just last year.
CIM Capital specialises in getting struggling companies out of the doldrums. Four years ago, for instance, the fund took over part of the shops of travel operator Neckermann. And just last year, the fund took over the chic but moribund car event Zoute Grand Prix in Knokke-Heist.
With CIM Capital, Lunch Garden hopes to relaunch as soon as possible, ‘possibly as early as today’. Specifically, the company wants to continue with 42 of 62 restaurants. ‘We are now looking forward to a new phase with a new shareholding to further strengthen Lunch Garden and make it future-proof,’ said even CEO Brouwers.
**From Resto GB to Lunch Garden**
The concept of Lunch Garden originated in the 1960s. Back then, cafeterias were built along the then GB supermarkets, where customers could eat something during their shopping trip. This was done under the name Resto GB.
When GB’s parent company took over the self-service restaurants of chain shops Sarma and Nopri, they continued together under the name Lunch Garden.
The company changed hands a number of times over the past decades and so now it is likely to change again.
**Debts and dilapidated concept**
Where exactly has Lunch Garden gone wrong in the past year? Gino Van Ossel, professor of marketing at the Vlerick Business School, sees 2 major pain points. First, he sees that the company has piled up a heavy debt mountain, partly due to the corona crisis, and that the current shareholder did not want to pump additional money into the company.
In addition, Van Ossel sees a deeper, structural problem. ‘Lunch Garden is a concept from the past that has too little connection to the present,’ he says. People went there after shopping in the nearby supermarket simply because they were hungry. ‘It was tasty and cheap.’
But in recent decades, hijackers have entered the scene, including fast food restaurants. Meanwhile, Lunch Garden has failed to incorporate fun into their formula. ‘Consumers do not think of Lunch Garden for a fun outing,’ he says. And as a result, the sleazy concept no longer appeals to a young audience.
The task now is to reinvent the concept so that Lunch Garden can attract enough customers, Van Ossel said.
Nooo not the Lunch Garden! *hasn’t gone to a Lunch Garden in many years*
(They’re alright, it’s just there’s none nearby)
I like the concept of healthy (as in non-fastfood) for a decent price. Too bad there aren’t too many restaurants offering the same.
Never been, never plan on going.
It just does not appeal to me.
Ah we used to go there so often when I was a kid. But honnestly haven’t gone there in years. It always kinda felt like a time capsule.
Corona really hurt them too. I remember having lunch there before 2020 and getting what felt like half a chicken with great fries and appelmoes, and after the lockdowns they changed their menus and suddenly it was only a small chicken thigh, rather dry, flavourless sauce and dry fries.
But yes, the concept is also very meh, it attracts the old grannies for a cup of coffee, and not much else.
So a relunch?
I actually go there regularly. Easy, not expensive and reasonable value for money. And tastier anyway then quick, mcDo etc.
When my dad was hospitalised for many weeks, I ate there once or twice a week. Not easy otherwise to find something that is not pizza or kebab at 20:00-2030…
I went when itwas still part of GB, fun times eating in what felt like an old people’s home…
I keep threatening my kids to take them there if they don’t eat their brocoli!!!
I would be sad to see it go, it’s part of what makes Belgium Belgium.. a bit like little chef in the UK.
And is it me or are the quick places also disappearing slowly..?
Hurts my soul. It was my to go to place for 35 years. Vol-au-vent at the location closest to us was up there. No faf, no special ingredients, nor tiny videekes to try and impress michelin.
Hope relaunch works out, but I for one would not be asking for a menu revamp. Ain’t nothing wrong with ballekes in tomatensaus or vol-au-vent!!
Never heard of it …. I am a bit confused. I am supposed to know it?
Getting downvoted because I’ve never seen this place. Nice, go /r/belgium tolerance
Not RestoGB!
Went there 10 years ago, ambience was of old age home. Food was ok.
There are 62 and they will keep 42 open, but only 10 are listed. 😅
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