Panera franchise collapses in Houston: Lawsuits, layoffs, and millions owed
15 Houston-area Panera Bread stores are closed after the franchisee files for bankruptcy.
Hundreds of workers are left jobless.
The franchisee owes $10–$50 million to creditors.
HOUSTON - The operator of more than a dozen Panera Bread locations across the Houston area is in legal and financial hot water, facing a federal lawsuit from Panera Bread, and filing for bankruptcy protection.
What we know
EYM Café of Texas LLC, a franchisee of Panera, operated 15 stores in the Houston area. Chad Rainey was an assistant general manager at one of them. He says he moved locations for a promotion in the company and shortly after, on his birthday, he was told the store was closing and he no longer had a job.
"There's 15 stores with 40 to 60 employees per store - we're all out," he said.
Rainey says his last paycheck is supposed to hit Friday, but EYM Cafe hasn't responded to any inquiries from employees on how to collect that payment.
"I'll be on the street. I have no vehicle - no nothing. Me and my wife will be on the street," he said.
Dig deeper
Records show EYM Café began operating the 15 locations in 2019 and in May 2025, Panera Bread filed a lawsuit against the franchisee, accusing them of repeatedly breaching its franchise agreements by failing to make required payments, maintain food safety standards, and pay vendors and landlords.
The suit says Panera Bread terminated franchise rights at multiple Houston-area locations earlier this year, but claims the franchisee continued to operate the locations illegally.
"It honestly came as a shock and out of nowhere," said Ricky Baskin, a former manager.
According to court filings, Panera alleges that EYM's payment issues began surfacing in February 2025. It says inspections by Panera reportedly uncovered "multiple food safety issues" and violations of brand standards at multiple cafés. Notices of default and termination were sent for at least 10 stores between March and May, the suit says.
Records show EYM Café of Texas LLC filed for Chapter 11 bankruptcy protection on August 2, 2025. The records say the operator of the LLC is Eduardo Diaz. According to bankruptcy records, the company reports owing between $10 million and $50 million to hundreds of creditors.
Employees tell us the locations they were working at closed on August 1.
Bankruptcy statements and property records show the locations of the now closed locations once operated by EYM Cafe include:
3113 College Park Dr., Conroe, TX 77384
1304 W. Davis St., Conroe, TX 77304
12220 FM 1960 Rd. W., Houston, TX 77065
19506 Katy Fwy., Houston, TX 77094
1201 Lake Woodlands Dr., The Woodlands, TX 77380
15607 Interstate 105 W., Montgomery, TX 77356
8203 Louetta Rd., Spring, TX 77379
26003 Northwest Fwy., Cypress, TX 77429
21620 Kuykendahl Rd., Spring, TX 77388
3548 Rayford Rd., Spring, TX 77386
1448 Louetta Rd., Spring, TX 77388
25546 Kingsland Blvd., Katy, TX 77494
22521 Tomball Pkwy., Houston, TX 77070
28403 State Highway 249, Tomball, TX 77375
FOX 26 reached out to EYM Cafe, Diaz's lawyer, and Panera Bread for comment. None of the parties have replied to the inquiry yet.
The Source
FOX 26 Reporter spoke with one employee affected by the closures, court records
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