Why Did Tilted Kilt Go Out of Business? - 33rd Square (2024)

Hey there! As a fan of Tilted Kilt back in the day, I‘m sure you‘ve wondered why the popular restaurant and bar chain shut down all of its company-owned locations by 2018. Well, I‘ve done some digging into Tilted Kilt‘s history and have got the inside scoop on what led this Celtic-themed sports bar concept to ultimately go out of business after over 15 years.

Grab a pint, have a seat, and let‘s get into the rise and fall of Tilted Kilt!

A Brief History of Tilted Kilt

The Original Concept (2003-2008)

Tilted Kilt first kicked off in 2003 with founders Mark DiMartino and Ron Lynch opening the very first pub in Tempe, Arizona near Arizona State University campus. Their vision was to create a lively sports bar and restaurant with a Celtic twist.

The interior design featured a traditional Scottish/Irish pub aesthetic with dark wood, tartan plaid, and antiqued signs. And of course, the now famous servers wore mini-skirts and crop tops made from the same tartan fabric.

The menu focused on typical American sports bar fare like wings, nachos, and burgers alongside Irish-inspired dishes such as fish and chips, shepherd‘s pie, and Scotch eggs. Add in a wide selection of beers on draft, and Tilted Kilt was born!

Expanding Across the U.S. (2008-2012)

Thanks to its fun, energetic atmosphere and tasty pub grub, the Tempe location became a huge hit. Tilted Kilt began rapidly expanding across the U.S. through franchising deals, growing to 50 locations by 2008 and over 100 by 2011.

Tilted Kilt restaurants could be found in college towns, suburbs, airports, and shopping centers in nearly every state. The chain targeted local, community-focused spots where friends could gather to watch sports, grab drinks, and of course, enjoy the eye-catching servers.

For several years, Tilted Kilt saw steady success and growth as a franchise. By 2012, estimates indicate the chain had 132 locations bringing in around $200 million in annual sales.

Financial Troubles Begin (2012-2018)

Unfortunately, the brand‘s rapid growth soon hit some snags. In 2011, amidst accusations of misusing company funds, CEO and founder Mark DiMartino left Tilted Kilt. This kicked off several years of management shakeups, lawsuits, and financial issues for the company.

Facing rising debts, Tilted Kilt filed for bankruptcy in 2017 and proceeded to close dozens of company-owned locations. The remaining restaurants tried to restructure into franchise locations to stay afloat. But by 2018, the last corporate-owned Tilted Kilt had shut its doors.

Though a few independently owned franchise locations still remain today, the Tilted Kilt concept ultimately couldn‘t survive its mounting money troubles and lawsuits.

Now that we‘ve got the brief backstory, let‘s dig into the various factors that really led to this company‘s closure.

Growing Competition in the Restaurant Industry

One major challenge for Tilted Kilt was simply the increasingly competitive restaurant market in the 2000s and 2010s. When the chain launched, a Celtic-themed sports bar felt like a novel idea. But it didn‘t take long for imitators and similar competitors to pop up everywhere.

Too Many Lookalikes

As Tilted Kilt expanded across the U.S., other brands emerged with strikingly similar concepts including:

• Twin Peaks: Founded in 2005 in Texas, also had a "man cave" sports bar vibe with young, attractive female servers in revealing outfits. Known for "the girl next door" compared to Tilted Kilt‘s "naughty Celtic lass" image.

• Tilted Tavern: Launched in 2008 with essentially a copycat name, logo, and uniforms.

• Kiltie‘s Irish Pub: Irish-themed sports pub and restaurant chain with servers dressed in "Irish schoolgirl" outfits.

• McFadden‘s: Chain of party-focused bar/restaurants with live music and entertainment.

In addition to these copycats, regional sports bar chains were expanding too, crowding the market in cities across America. With so many choices for games, beer, and wings, Tilted Kilt struggled to differentiate itself.

Casual Dining Chains Offered Stiff Competition

Tilted Kilt also faced competition from more mainstream casual dining chains like Buffalo Wild Wings, Hooters, Dave & Buster‘s, and more. These spots could offer a similar vibe for watching sports with pub food and drinks without the gimmicky theme.

Even during the 2008 recession, these chains had more financial security and resources to update stores and menus as customer tastes changed. Tilted Kilt simply couldn‘t keep up.

The Recession Impact

Speaking of the recession, the 2008 economic downturn dealt a big blow to mid-priced sit-down dining chains like Tilted Kilt. With less discretionary income, consumers cut back on going out to eat and shifted toward cheaper fast casual alternatives.

According to market research firm NPD Group, traffic at mid-scale dining establishments dropped over 6% during 2008-2009. At the same time, quick service and fast casual visits rose by over 2%.

Mid-scale dining chains like Tilted Kilt saw visits decline during the recession while fast casual options rose. [Source]

This sea change in spending habits made it even more difficult for Tilted Kilt to attract customers during an already crowded and competitive period for sports bars and pubs. The economic landscape simply wasn‘t favorable for the chain‘s recovery.

Shifting Consumer Preferences

In addition to growing competition, Tilted Kilt also found itself on the wrong side of shifting demographics and consumer preferences in the 2010s:

Younger Generations Wanted Localized Choices

Although Tilted Kilt aimed to provide a neighborhood pub vibe, younger Millennial and Gen Z customers increasingly favored hyperlocal independent restaurants and bars over big chains.

Plus, the over-the-top Celtic theme and servers in tiny plaid outfits came across as gimmicky rather than authentic to many younger patrons. They wanted good food and drinks without the kitschy shtick.

Health Trends Left Tilted Kilt Behind

Tilted Kilt also failed to catch on to the health and wellness dining trends of the 2010s. Younger generations sought out fresher food with ethically sourced ingredients.

But fries, burgers, and fried appetizers remained core to Tilted Kilt‘s menu. Adding a token salad or two simply wasn‘t enough to change brand perception around unhealthy eating.

"Sexy" Server Concept Faced Criticism

The revealing "sexy servers" concept at Tilted Kilt also increasingly faced scrutiny as no longer appropriate. Critics called the tartan two-pieces and crop tops sexist and exploitative of women servers.

In the #MeToo era, the debate around these types of outfits grew louder and louder. While the servers at Tilted Kilt themselves often seemed to genuinely enjoy the festive look, changing attitudes made the concept much more controversial.

Thirst for Craft Beer

Lastly, the mainstream embrace of craft brewing didn‘t mesh well with Tilted Kilt‘s very traditional, macro-beer focused bar program. Customers, especially younger ones, were seeking out breweries and beer gardens to sample creative microbrews instead.

Tilted Kilt‘s taps were dominated by big name lagers and ales rather than experimental or local beers. Keeping up with the exploding craft beer scene proved challenging.

The chain attempted to adapt by adding more interesting beer, health-conscious fare, and modern branding. However, these changes simply couldn‘t happen fast or drastically enough to win over changing consumer palates.

Management Issues and Lawsuits

While the external pressures above were significant, Tilted Kilt was also weighed down by internal instability in its final decade. Frequent management changes and legal issues plagued the brand‘s ability to successfully turn things around.

Founder‘s Untimely Departure

In 2011, Tilted Kilt founder and CEO Mark DiMartino left the company. His departure came under a cloud of scandal as he was accused of misusing company funds for personal gain.

Losing its founder and original leader left Tilted Kilt reeling. After DiMartino‘s exit, the company went through numerous CEOs and executives, with none able to steer the ship back on course.

Mark DiMartino‘s scandalous departure as CEO kicked off a period of turmoil for Tilted Kilt. [Source]

Costly Lawsuits Distracted Leadership

Making matters worse, DiMartino‘s exit precipitated several years of messy lawsuits between various Tilted Kilt executives alleging misconduct and misspent resources.

These lawsuits were costly distractions that made it extremely difficult for the brand to regroup. Tilted Kilt spent more time in the courtroom than focused on updating stores and operations to stay competitive.

Instability at the Top

Between 2011-2018, Tilted Kilt changed ownership and management multiple times. With so little continuity among leadership, maintaining a clear direction for the brand proved challenging.

Fresh perspectives could have helped evolve the concept. But constant turnover also made it hard to invest in improvements before the next shakeup happened.

Ultimately the legal issues, scandals, and constant flux in the executive suite left Tilted Kilt flailing aimlessly without a steady hand to lead the way.

The Beginning of the End

By 2017, the accumulated pressures had taken a massive toll on the company‘s financial standing. Most Tilted Kilt units were actually losing money each month. Estimates suggested nearly two-thirds would need to close for the brand to have a chance.

With debts mounting and lawsuits still dragging on, Tilted Kilt filed for Chapter 11 bankruptcy protection in October 2017. This set the endgame in motion:

Mass Closure of Company-Owned Stores (2017-2018)

As part of its bankruptcy and restructuring, Tilted Kilt immediately moved to close dozens of company-operated restaurants. By the end of 2017, 38 locations had been shuttered.

The company auctioned off assets and inventory from these closed stores to pay back creditors. A few company stores remained open temporarily during the transition to the franchise model.

Tilted Kilt closed over 30 company-owned stores just in 2017 amidst bankruptcy filings. [Source]

Transition to Franchising (2017-2018)

During the bankruptcy proceedings, Tilted Kilt announced plans to convert remaining company stores into franchises as a way to keep some locations running.

However, the brand damage was already done. After the bankruptcy, only around 50 franchised Kilts remained, and that number kept dropping fast. Most eventually closed shop due to declining sales and profits.

The Last Kilt Standing (2018)

By mid-2018, only about a dozen Tilted Kilt restaurants still hung on as franchises. The last company-owned location in Atlanta shuttered in June 2018 permanently ending the parent brand‘s operations.

A few scattered independent franchisees vowed to keep serving Celtic fare. But the Tilted Kilt concept was finished, with its legacy marred by financial and legal troubles.

Now, let‘s take a look at which Tilted Kilt restaurants are still kicking today and what the future could hold for this iconic brand.

What Locations are Still Open?

Although the parent company is long gone, a handful of franchisee-owned Tilted Kilt locations continue serving up fish and chips and cold beer. Here‘s where you can still get your Tilted Kilt fix:

Arizona

– Tempe – The original Tilted Kilt location near ASU campus still lives on to this day!

Florida

– Pensacola
– Jacksonville

Illinois

– Chicago (2 locations – Elgin and Schaumburg)

Kansas

– Overland Park

Louisiana

– Metairie

North Carolina

– Charlotte

Ohio

– Warren

Oklahoma

– Oklahoma City

West Virginia

– Charleston

That‘s just 13 total Tilted Kilts still kicking in 9 different states as of October 2022. The loyal franchisees who operate these last Kilts just don‘t want to give up on the concept. More power to ‘em!

These holdouts give fans a chance to enjoy their Tilted Kilt favorites. But the overall outlook remains hazy. Now, let‘s look at what could be next for this iconic Celtic brand.

What Does the Future Hold for Tilted Kilt?

When Tilted Kilt closed up shop, its intellectual property assets were purchased by restaurant management company Armada Enterprises. But so far, not much as come of this acquisition.

There are a few possibilities for Armada could revive the Tilted Kilt name:

Reopen Brick-and-Mortar Locations

Armada could breathed new life into Tilted Kilt by opening new company or franchised brick-and-mortar restaurants across the country. However, they‘d have to seriously overhaul and modernize the concept for success.

A hip, updated Tilted Kilt focused on craft beer and healthier fare could resonate with Millennial and Gen Z diners. But Armada has shown no moves in this direction so far.

License the Brand to Existing Bars and Restaurants

Another less capital-intensive possibility is for Armada to license the Tilted Kilt name and recipes to current local bars and eateries.

This "ghost kitchen" model has become popular in recent years. It would allow new operators to host Tilted Kilt themed events and menu items without running a full restaurant.

Sell It Off

Or, Armada could simply sell or auction off the Tilted Kilt assets entirely if the company sees little value in reviving the brand itself. Another hospitality group could purchase the intellectual property, logos, recipes, etc. and give things a go.

Fade to Black

The most likely scenario is that Tilted Kilt remains dormant in Armada‘s hands. The brand has been silent since 2018, so this seems to be the case so far. While the concept still has nostalgic appeal for some, its time may have simply passed.

Maybe a Tilted Kilt restaurant revival could succeed in the hands of creative new owners. But as time marches on, the window of opportunity gets smaller and smaller. At this point, the future lives only in "what ifs" rather than concrete plans.

I‘d say enjoy your nostalgic Tilted Kilt moments while a few franchised locations still exist! Don‘t wait around hoping for a miraculous comeback.

Why Tilted Kilt Closed: A Recap

Let‘s recap the key factors that led to Tilted Kilt‘s closure:

• Growing competition from similar concepts saturated the market
• Shifting consumer preferences toward local, healthier, innovative options
• Poor adaptation to trends like craft beer and updated dining experiences
• Legal issues and lawsuits caused instability and financial hardship
• Constant management turnover made it difficult to rescue the brand

Tilted Kilt saw its novelty wear off and its Celtic-themed sports bar concept go stale. Combined with a challenging economic climate and internal disarray, the company couldn‘t manage to turn things around.

In the end, Tilted Kilt serves as cautionary tale of how even a wildly successful young restaurant chain can quickly collapse without the ability to adapt. Fans will always have fond memories of this lively concept in its prime. But nothing lasts forever, as Tilted Kilt clearly shows.

Thanks for taking this walk down memory lane with me! Hopefully this provided some insight into why this iconic restaurant and sports bar had to close up shop. Have a great rest of your day!

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