Filing for bankruptcy. This is the reality many food chains are dealing with today: chapter 11, liquidation of all locations. What sounds like a nightmarish story is unfortunately becoming normalized. Or is it? Perhaps food chains are having it rough, or maybe their mistakes are entirely avoidable. Either way, we are here to unpack what is happening right now with the once beloved chicken chain whose days have been numbered.
1. Chicken Spot In Crisis
The rule is this: if Sticky’s fails to sell assets by the court deadline, then it must liquidate all 12 of its locations! Sticky’s Chicken Joint has been a New York and New Jersey staple since 2012. People loved it. Because their marketing strategy was brilliant: selling “never-frozen” chicken fingers that haven’t been treated with antibiotics. And yet now, post-pandemic, it’s approaching its demise.
2. The Rise Of Sticky’s
It all started with one single spot in Manhattan. But from 2012 to 2023, Sticky’s gained over $22 million in revenue. Their dipping sauces? Delicious. The branding? Edgy. It’s no wonder they’ve risen so fast by appealing to niches amongst foodies. Yet the fall now is undeniably painful. The bigger the rise, the harder the fall!
3. Pandemic + Congestion + Cold
In December 2024, Sticky’s declared three main culprits to their problems. NYC faced the harshest December in years, which stopped people from coming to their stores. By January 2025, congestion pricing got a surplus of $9 per car. Then, we have COVID. COVID-era left Sticky’s locked into lease payments that are going well into six figures.
4. Delivery Apps
Due to COVID, Sticky’s turned to delivery apps like Uber Eats and DoorDash. Of course, it was the logical thing to do. But here’s the kicker: super high fees. Foot traffic never fully recovered after COVID, so Sticky’s is left unable to recover the dine-in revenue. So profits fell, debt rose.
5. Chapter 11
The infamous chapter 11. Sticky’s entered it in April 2024 with $1-10 million in liabilities and under $1 million in assets. The plan they formulated was to sell around $2 million to Harker Palmer Investors, restructure debt and keep locations open. But if that fails, there’s always Chapter 7. Meaning total shutdown and auction of assets.
6. Food, Flavors, Fandom
Did you know that Sticky’s built its legacy by posting food aesthetics aka “food porn”? Yes, the visuals and cheeky posts attracted the masses. They even dared post on OnlyFans! The 16 house-made sauce flavors have gone viral multiple times. So, Sticky’s is more than chicken, it’s a brand!
7. Footprint And Fans
Unfortunately, five out of 12 locations were found in the congestion zone. That means both dine-in and delivery traffic were severely impacted. The $9 congestion fee was unacceptable even for loyal customers. However, they still believe in Sticky’s. Many claim that if Sticky’s survives this filing, it can rebound.
8. Courtroom Drama
The US Trustee’s office pushed back on requests to shield the new owner of Sticky’s against future lawsuits. Keep it in mind, if the bankruptcy judge denies it, the deal collapses. For both the fans of Sticky’s and the creditors, the next weeks are crucial.
9. Exit… Or Extinction
If Harker Palmer’s gets approved, Sticky’s can survive under new management. But if not? All locations are shutting down, kitchen equipment and lease rights will be sold off. And this theoretical full shutdown erases Sticky’s urban footprint completely and overnight!
10. The Changing Economy
Mid-tier chains have the potential to grow fast, only to turn incredibly fragile when on top. From heavy rent to third-party deliveries, everything is a risk. And the truth is, having a loyal customer base doesn’t save you from economic pressure. Sticky’s might become a lesson for other mid-tier chains.
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