The Razzoo’s Cajun Cafe chain filed for Chapter 11 bankruptcy on Wednesday.
I like Razoo’s, but it has been a minute since I’ve been to one. The nearest Razoo’s to me is not just in Round Rock, but way the heck up in Round Rock.
Razzoo said its bankruptcy filing was fueled by some of the same things that have led other larger and smaller operators to do the same, including changing consumer behavior and inflation. Unlike everyone else, however, the Texas company also pointed out two other culprits:
Joe Biden? No.
Key competitors, specifically Chili’s and Applebee’s, “aggressively” marketed themselves and their value-leaning promotions, which shrunk Razoo’s foot traffic.
Neither of these places serve Cajun food, and Applebee’s has also fallen on hard times. I can’t really see Applebee’s/Chili’s/Razoo’s as being fungible, so I’m not sure why they’re saying this.
Razzoo also said that while crawfish season has started earlier in 2025 than 2024 (has it?), increased competition has forced it to drive prices down and thus, revenue.
Interesting. I don’t have any idea about the crawfish season, though I guess if I wanted to, I could go through my emails from Stuffed (recommended) and try to figure it out. But that would require effort.
Also interesting:
Also interesting was Razoo’s mention that it didn’t own any real estate. Its monthly rent obligations for its stores are around $650,000 a month. In more than a few discussions I’ve had with operators this year, owning property has been one of the big talking points; some business owners, like Ronnie Killen, have culled their portfolios because they prefer owning the land beneath their restaurants.
Looks like that one in Round Rock is still open, but the article mentions the sudden shutdown of one in Corpus Christi.
