Hawkers Asian Street Food Seeks Bankruptcy Protection to Secure Its Future

Hawkers Asian Street Food, a pioneering restaurant that kickstarted a movement of new-generation Asian and pan-Asian eateries in the Mills 50 neighborhood of Orlando, has announced that it is filing for Chapter 11 bankruptcy. The decision comes as the restaurant seeks to maintain operational control and protect its brand from an "overreaching lender" with whom it had entered into a debt capital agreement earlier this year.

Navigating Turbulent Times: Hawkers' Pursuit of Stability and Growth

Hawkers' Expansion and Resilience

Hawkers Asian Street Food has been a trailblazer in the local dining scene, opening its first location in Mills 50 back in 2011. The restaurant, modeled after the bustling hawker stalls of Malaysia and Singapore, has since expanded to 15 locations across seven states, with more growth on the horizon. Despite the challenges posed by the macroeconomic environment and mixed market conditions, Hawkers has managed to maintain a strong performance, reporting a sales growth of 18.5% in 2023 and a same-store sales growth of 26%.

Debt Capital Agreement and Lender Tensions

In early 2023, Hawkers entered into a debt capital agreement with a lender, with the intention of growing the Hawkers brand into a household name across the United States. However, in the past 60 days, the restaurant has felt that the lender's intentions have shifted, with the lender seeking to gain control of the company, despite Hawkers never missing a payment since the inception of the partnership.

Bankruptcy Filing: Preserving Integrity and Operational Control

Faced with this situation, Hawkers has decided to file for Chapter 11 bankruptcy, a move that will allow the restaurant to "continue normal, uninterrupted operations and vendor payments" while it works to "re-stabilize" the company's control in a way that secures a "thriving and successful future" for Hawkers and its dedicated team.

Hawkers' Commitment to the Future

The team behind Hawkers, which was founded by Kaleb Harrell, Allen Lo, Wayne Yung, and the late Kin Ho, remains committed to negotiating a favorable outcome with the lender and maintaining the bright future of the Hawkers brand. The restaurant has expressed its intention to "welcome guests for their Hawkers favorites for decades to come," underscoring its determination to overcome the current challenges and continue its legacy of serving up delectable Asian-inspired cuisine.

Culinary Innovations and Expanding Horizons

Even as Hawkers navigates the complexities of its bankruptcy filing, the restaurant has not lost sight of its culinary prowess. It has recently introduced new menu items, including curry mash, Penang poutine, Vietnamese "goi ga" salad, and chili crisp cucumbers, showcasing its commitment to innovation and satisfying the evolving palates of its loyal customers.

A Resilient Spirit and a Promising Future

Hawkers Asian Street Food's decision to file for Chapter 11 bankruptcy is a testament to the restaurant's resilience and its unwavering commitment to preserving its brand and operational control. As the team works to negotiate a favorable outcome with the lender, the future of Hawkers remains bright, with the promise of continued growth, culinary excellence, and a steadfast dedication to providing its customers with the authentic and vibrant flavors of Asian street food.