Corner Bakery Cafe has experienced a whirlwind two years.
The fast-casual chain best known for its cafe-style sandwiches, soups and pastries filed for Chapter 11 bankruptcy in February 2023, citing the pandemic and declining sales as primary factors. As a result, 37 locations ceased operations that year, according to the company’s franchise disclosure document.
Dallas-based SSCP Management purchased the bakery concept months later in June. The company is a franchisee of Applebee’s and Sonic and the owner of Roy’s and Cicis Pizza, the latter acquired in 2021 after it filed for bankruptcy earlier that year.
“We knew the brand stood for something that we really believed in, but we also knew it kind of ran into some trouble with COVID and an ownership change and leadership changes,” said Chris Dharod, SSCP President and Corner Bakery CEO. “We felt like it was an opportunity where we’d be able to come in and get the brand back to where it was at.”
Like SSCP, Corner Bakery calls Dallas home. Familiarity with the brand further drove SSCP’s interest, with the company’s office connected to a mall featuring a Corner Bakery unit.
“Our office has been connected to that Corner Bakery for 16 years, so we’ve ate at the brand for a long time,” Dharod said. “We’ve known that the product has been wonderful, and we knew the brand had a strong following.”
Chris Dharod
Dharod stepped into Corner Bakery’s CEO role shortly after SSCP acquired the brand; he served as the brand’s president until this summer, when SSCP promoted former Chief Operating Officer Erin Hasselgren to the role. Hasselgren worked for the brand for nearly two decades and held executive roles with Burger King, Cracker Barrel and Portillo’s.
“I think Erin really understands what makes the bakery a special place … and we want to be able to try to have a leadership team that understands the brand,” Dharod said. “Although we know the brand as a consumer, we haven’t run that business in and out.”
Bringing Hasselgren back into the mix is part of larger efforts to revitalize Corner Bakery, as the brand works to bounce back from bankruptcy.
Emphasizing proper training and support is “a strong building block and foundation” in advancing these efforts, ensuring staff members are in a strong position to take care of guests, Dharod said. This focus dramatically improved the brand’s guest experience over the last year and a half, he said.
Corner Bakery’s food quality and menu have also seen recent changes, introducing a new cinnamon roll and a refreshed lineup of soups—none of which were on the menu 18 months ago.
Remodeling and technology upgrades continue to be a central priority in regenerating brand interest. About a half dozen units were remodeled in 2024, and SSCP’s goal is to remodel a dozen more next year. The company installed self-order kiosks in a few locations, and Dharod expects to install them in all Corner Bakery units by the end of 2025.
Of course, revitalizing a brand from the ground up comes with challenges. Dharod said he and his team accepted the slow, grueling side of building back a company, even when the desire for immediacy lingers.
“I don’t want to say it’s been a huge frustration—it’s just a part of reality—but sometimes things just take time,” he said.
SSCP sued Corner Bakery’s previous owner, Pandya Restaurant Growth Brands, in May alleging “shocking, systemic breaches of fiduciary duties and fraudulent transfers.” SSCP is seeking recovery of damages related to the company’s bankruptcy, according to the lawsuit. The case remains in a U.S. District Court in Texas, but in a December 9 order it was noted SSCP must “effectuate proper service” on the defendants and file a valid return of service by January 3, 2025 or the case will be dismissed. Dharod declined to comment on the suit’s status.
SSCP’s trust in the brand’s future is backed by investments. With new store builds, remodeling and upgrades to equipment and technology, Dharod estimated SSCP has invested $10 million into Corner Bakery. This estimate does not include the cost of acquiring the brand, he noted.
Dharod anticipates investments between $10 million and $15 million in 2025.
Revitalization efforts made an impact on unit count after years of decline. Corner Bakery’s FDD reported 104 units at the end of 2023, with 37 franchised. Dharod said the company broke even this year for unit growth, closing two to three cafes while opening two new ones.
Dharod anticipates opening five new locations next year, one being the company’s first new franchise since 2022. Additional franchise development agreements are in negotiation.
“I’m really excited about all the opportunities for more things, more initiatives, more low-hanging fruit for us to be able to take advantage of,” Dharod said. “Whether that’s technology, food innovation, marketing, etc., I think there’s a ton of opportunity for us to be able to continue to grow the economics of our brand. As those economics continue to get more and more compelling, I anticipate seeing more and more growth.”