K&W Cafeteria, an 88-year-old Southern comfort food chain, abruptly shut down all nine of its restaurants across North Carolina and Virginia this week, leaving hundreds of employees out of work and loyal patrons devastated.
The cafeteria-style eatery, known for its affordable, homestyle meals of fried chicken, baked spaghetti, and chocolate cream pie, announced its permanent closure in a Facebook post on Monday.
The restaurant chain thanked customers for their support and added, “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 explanation was offered for K&W’s sudden closure. Just last month, the chain was hawking a $30 gift card and a free pie for holiday season shoppers.
K&W did not immediately respond to a request for comment by Business Insider on Tuesday, but told FOX8 WGHP in a statement that “like many restaurant companies across the country, we have struggled to navigate an extremely challenging operating environment.”
Data from foodservice industry research firm Technomic’s Ignite database showed that K&W’s sales fell 10% year over year in 2024, and its 2025 sales were predicted to be even more grim.
The chain’s abrupt closure comes as the restaurant industry has been under pressure due to rising food and labor costs, as well as tightening consumer budgets.
A bankruptcy filing for K&W in 2020
The restaurant chain began as the Carolinian Coffee Shop in the North Carolina city of Winston-Salem before its original investors — T.K. Knight and his brothers-in-law, Thomas, Kenneth, and William Wilson — renamed it K&W, using their initials, in 1937.
In 1941, the late Grady Allred Sr., who worked at the Carolinian Coffee Shop, became the sole owner of K&W and ultimately expanded the business to 16 locations across the Carolinas and Virginia.
By 2020, the Allred family had grown the restaurant to 28 outposts, however, the business, like many others, was hit hard by the COVID-19 pandemic.
K&W shuttered several restaurants at the time and filed for Chapter 11 bankruptcy protection in September 2020, saying in court papers that it had just over $30 million in assets and $22.1 million in liabilities.
The chain emerged from bankruptcy a year later after a reorganization.
While there are no current bankruptcy filings under the K&W name, data from S&P Global Market Intelligence shows that 2025 corporate bankruptcies are on track to hit levels not seen in 15 years, since 2010. Personal bankruptcies are also on the rise, according to data from the Administrative Office of the US Courts.
In 2022, K&W was acquired by Falcon Holdings, a Texas-based company that also owns the Piccadilly restaurant chain.
By the end of its reign, K&W was operating eight locations in North Carolina and one in Virginia. A former employee told WFMY News 2 that more than 300 K&W workers were left jobless.
Following K&W’s closure announcement, customers flooded the comments section to share their sadness, reminisce about their memories, and even beg for recipes.
“Can you at least give us the baked spaghetti recipe???” one post read.