After closures, popular restaurant may be up for sale | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

As kids, summer not only signaled the end of the school year and a months-long break from homework, it also meant the yearly seasonal family vacation was about to begin.

To many of us, that meant heading to the beach to tan and swim for multiple days until our backs turned red and our skin was as wrinkly as a raisin from being in the water too long.

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After hours in the sun, having family dinner at the closest restaurant chain was a must. It always involved a tropical-themed restaurant with American food and seafood, so the picky eaters wouldn’t complain for the rest of the trip.

For those who vacationed in Florida, Bahama Breeze was the go-to spot.

This restaurant had everything from chicken fingers to coconut shrimp, and it was the only place our parents would let us get a Piña Colada — virgin, of course.

Bahama Breeze is owned by Darden Restaurants (DRI) , a restaurant owner and operator with over 2,100 locations spanning various known brands, including Olive Garden, LongHorn Steakhouse, Yard House, and more.

Although this company owns some of the most iconic American restaurant chains, it has been struggling with increased labor costs, growing competition, the potential impact of macroeconomic fluctuations, and ever-evolving consumer needs, which remain challenges in its overall business.

However, the company revealed some unexpected news that caught many by surprise.

Bahama Breeze is at risk of being sold to a new owner after restaurant closures.

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Bahama Breeze abruptly shuts down dozens of restaurants

Bahama Breeze abruptly closed 15 locations across eight states in May due to underperformance, cutting its footprint by nearly 35%.

The sudden shutdowns allowed Darden to reinvest and focus on the remaining high-performance restaurants to improve its overall business.

However, the mass shutdowns still offset its growth, making Bahama Breeze’s financial situation even more difficult.

Closing locations and shedding brands is not unusual for the company.

Darden sold Red Lobster in 2014, which turned out to be a good decision, since the chain filed for Chapter 11 bankruptcy under new ownership 10 years later.

Recently, the company also signed a definitive agreement to sell eight Olive Garden restaurants in Canada.

Bahama Breeze CEO reveals a harsh truth about the business

Bahama Breeze CEO Rick Cardenas revealed during the company’s latest earnings call that it’s considering strategic alternatives for the restaurant, since it no longer fits in its current portfolio of brands.

These alternatives include the potential sale of Bahama Breeze or converting the locations into other brands that are far more profitable for the company.

The company said it still believes Bahama Breeze has growth potential, but with another owner, which is why it will no longer invest in the brand.

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“After further review, we have made the difficult decision that these remaining locations and the Bahama Breeze brand are not a strategic priority for us,” said Cardenas. “We also believe that this brand and these restaurants have the potential to benefit from a new owner. Consequently, we will be considering strategic alternatives for Bahama Breeze, including a potential sale of the brand or converting restaurants to other Darden brands.”

This shocking decision was made after the company reviewed each brand, which led to the development of a five-year plan in which Bahama Breeze no longer fit.