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M&M Custard Files for Bankruptcy Amid Consumer Struggles

11/17/2025

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Summary

Story summary

M&M Custard, a Freddy's franchisee, filed for Chapter 11 bankruptcy in Kansas with $5.2 million in assets and $27.7 million in liabilities.
The filing follows a trend as lower- and middle-income consumers face challenges.
M&M Custard and 31 affiliates plan to restructure while operating.
Industry leaders, including McDonald's and Chipotle CEOs, cite reduced traffic from lower-income consumers.
M&M Custard plans to close several stores during the bankruptcy.

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Story summary

M&M Custard, a Freddy's franchisee, filed for Chapter 11 bankruptcy in Kansas with $5.2 million in assets and $27.7 million in liabilities.
The filing follows a trend as lower- and middle-income consumers face challenges.
M&M Custard and 31 affiliates plan to restructure while operating.
Industry leaders, including McDonald's and Chipotle CEOs, cite reduced traffic from lower-income consumers.
M&M Custard plans to close several stores during the bankruptcy.