The fast-food sandwich sector has battled economic issues over the last year, leading franchisees to close locations and, in some cases, file for bankruptcy protection.

Rising costs of labor and products driven by inflation and increased tariffs are among the economic issues sandwich chains have faced.

Tariffs in 2025 increased the costs of essential sandwich shop products, such as imported cheeses, olive oil, seafood, and aluminum canned beverages, according to data provider IBISWorld.

Wholesale food costs rise

Wholesale food costs increased 5% year-over-year, according to the National Restaurant Association, amplified by the financial strain from rising tariffs, IBISWorld said.

Restaurants have passed those higher costs on to consumers through higher prices or smaller portions.

A certain sandwich chain franchisee ran into financial and legal issues last year that resulted in severe consequences, including bankruptcy.

Franchisee loses Panera locations

Former Panera Bread franchisee EYM Cafe of Texas LLC filed for Chapter 11 bankruptcy protection on Aug. 2, 2025, after losing control of its 15 Houston-area Panera franchises in a court judgment.

Panera LLC on May 23, 2025, filed a lawsuit against EYM Cafe of Texas in the U.S. District Court for the Eastern District of Missouri for unauthorized operation of several Panera locations in Texas and unapproved use of its trademarks.

Panera had terminated EYM Cafe’s franchise agreements in March and May 2025 due to payment defaults, food safety violations, and brand standard breaches, according to Law.com.

A federal judge ruled in favor of Panera on June 17, 2025, issuing a permanent injunction and ordering EYM Cafe of Texas to stop operating under the Panera brand, QSR reported.

In some cases, a business faces issues with its lease and landlord, forcing it to shut down a location. That’s what forced one longtime sandwich chain to close one of its shops.

Genova Delicatessen has one location remaining open after several units closed.

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Genova closes location

Iconic Northern California fast-food sandwich chain Genova Delicatessen has one remaining location open after closing down two shops in Walnut Creek, Calif.

The delicatessen chain closed its location at 1105 S. California Blvd. in Walnut Creek on Feb. 18, three months after closing its 2064 Treat Blvd. location, also in Walnut Creek, SFGate reported. The chain has not filed for bankruptcy.

Original deli closed in 2016

The deli chain, which was founded in Oakland, Calif., in 1926, had operated in Walnut Creek for 58 years, according to The Mercury News. It closed the Oakland location in 2016. The Treat Boulevard location reportedly closed Nov. 15, 2025.

“This was a heartfelt decision made after years of navigating increasing economic challenges,” the business said in an email statement to the Mercury. “We are deeply grateful for the opportunity to serve generations of Genova customers and to be part of this community for so long.”

The deli’s owner, John DeVincenzi, blamed the location’s lease for its closing but did not go into detail, KRON-TV reported.

“Every great thing comes to an end,” DeVincenzi told KRON-TV. “It’s just the way it happens with all our leases and everything going on in Walnut Creek. (The city) has been very good to us.”

One location remains

The one remaining location is Dominic’s Original Genova Delicatessen & Ravioli Factory at 1550 Trancas St. in Napa, Calif.

Genova will continue manufacturing its handmade ravioli and sauces, which are sold in the San Francisco Bay Area stores, at its Walnut Creek factory.

That’s good news for fans of the ravioli, like me, who buy the packages at local grocery stores to cook at home.

More closings:

  • Bankrupt restaurant chains permanently close popular locations
  • Major retail chain closes 35 stores nationwide, no bankruptcy
  • Another major retail chain closes warehouse operations

Genova’s deli menu includes sandwiches, featuring a variety of cold-cut meats and cheeses and about 20 different salads.

The deli’s hot case includes clam chowder, chicken noodle, and minestrone soups, and several pastas, including ravioli with meat sauce, cheese tortellini with pesto, lasagna, eggplant parmigiana, polenta, Italian sausage with sauce, Italian meatball with sauce, and roasted chicken.

Genova Delicatessen closings:

  • 1105 S. California Blvd. in Walnut Creek, Calif., Feb. 18, 2026 Source: SFGATE
  • 2026 2064 Treat Blvd., Walnut Creek, Calif., Nov. 15, 2025 Source: The Mercury News
  • Temescal Plaza, Oakland, April 30, 2016 Source: SFist

Related: Another celebrity-backed restaurant closes unexpectedly