Additional Coverage:
- Restaurant chain K&W Cafeteria abruptly closes all its locations after 88-year run (businessinsider.com)
K&W Cafeteria Closes Its Doors After 88 Years, Leaving Loyal Customers and Employees in Shock
Winston-Salem, NC – A beloved staple of Southern comfort food, K&W Cafeteria, has abruptly shut down all nine of its remaining locations across North Carolina and Virginia, ending an 88-year run and leaving hundreds of employees jobless and devoted patrons heartbroken.
The cafeteria-style eatery, renowned for its affordable, homestyle meals such as fried chicken, baked spaghetti, and their signature chocolate cream pie, announced its permanent closure via a Facebook post on Monday. The message conveyed gratitude to customers for their unwavering support, stating, “We are truly sorry to bring this chapter to an end, but profoundly thankful for the love you’ve shown us for nearly nine decades.”
No immediate explanation was provided for the sudden closure, which surprised many, especially since the chain was actively promoting holiday gift card specials just last month. While K&W did not immediately respond to requests for comment, a statement to FOX8 WGHP indicated that the company, “like many restaurant companies across the country, we have struggled to navigate an extremely challenging operating environment.”
Industry data from Technomic’s Ignite database revealed a 10% year-over-year sales decline for K&W in 2024, with grim projections for 2025. This closure highlights the mounting pressure on the restaurant industry, grappling with escalating food and labor costs, alongside tightening consumer budgets.
A History of Resilience and Recent Challenges
K&W Cafeteria originated in Winston-Salem as the Carolinian Coffee Shop. In 1937, original investors T.K.
Knight and his brothers-in-law, Thomas, Kenneth, and William Wilson, rebranded it to K&W, using their initials. Grady Allred Sr., an employee at the time, became the sole owner in 1941 and spearheaded the expansion to 16 locations.
By 2020, the Allred family had grown the business to 28 outposts. However, the COVID-19 pandemic significantly impacted the chain, leading to the closure of several restaurants and a Chapter 11 bankruptcy filing in September 2020.
At that time, court documents indicated assets of just over $30 million and liabilities of $22.1 million. The company successfully emerged from bankruptcy a year later after a reorganization.
In 2022, K&W was acquired by Falcon Holdings, a Texas-based company that also owns the Piccadilly restaurant chain. At the time of its final closure, K&W operated eight locations in North Carolina and one in Virginia. A former employee shared with WFMY News 2 that over 300 K&W workers were suddenly without employment.
The news of the closure prompted an outpouring of emotion from customers online, who flooded the comments section with messages of sadness, shared cherished memories, and even pleaded for beloved recipes. One particularly poignant comment read, “Can you at least give us the baked spaghetti recipe???”
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- Restaurant chain K&W Cafeteria abruptly closes all its locations after 88-year run (businessinsider.com)