Profitable sales worth millions of dollars from a renowned burger franchise, leading to closures of its branches in Germany
In a significant turn of events, the vegan fast-food chain Swing Kitchen has filed for insolvency, with its parent company Schillinger Vegan Holding initiating a restructuring process. The insolvency was driven by a combination of factors, including rising raw material costs during an aggressive expansion phase and unfavourable market conditions[1][3].
The restructuring process, which does not include self-administration, was initiated by Schillinger Vegan Holding, whose liabilities amount to approximately 4.3 million euros[1]. This proceeding affects around 40 creditors, with some franchisees also accumulating debts. For instance, one individual franchise location in Vienna reported debts of around 1.9 million euros, affecting 28 creditors, but this did not directly threaten other franchise locations[2][3].
Swing Kitchen's ambitious growth strategy included venturing into the German market. However, the competitive environment proved challenging, leading to the closure of all German locations in Berlin, Munich, and Leipzig[1][3]. The surge in raw material prices during this expansion period significantly increased operational costs, squeezing margins and profitability[1].
In an attempt to address these challenges, the company reorganised its corporate structure extensively in 2022, splitting operations into holding and subsidiaries across Austria and Germany. However, economic pressures overcame these efforts[1].
The insolvency reflects the broader pressures on plant-based fast-food chains, which face high input costs and competitive pressures amid ambitious growth strategies. Despite the insolvency in Germany and for some franchise firms, other locations in Austria and Switzerland remain operational, with plans for a possible menu modernization and strategic shift[1].
The CEO, Eltz, expresses optimism for the long-term perspective of employees and guests, stating that they think ahead and act proactively[4]. Eltz attributes various factors to the economic difficulties, including the challenging timing due to economic developments and the aggressive expansion strategy[4].
As of August 2, the homepage of Swing Kitchen still lists five "Swing Kitchen" locations in Austria and Switzerland. An updated menu was introduced in all branches as early as May this year[4]. The future of the branches in Vienna and Graz depends on the success of the initiated restructuring procedure.
[1] "Swing Kitchen insolvent: Court-supervised restructuring after expansion and raw material price increases." (August 1, 2025). Retrieved from www.vegannews.com.
[2] "Swing Kitchen insolvency: Impact on creditors and affected franchise locations." (August 2, 2025). Retrieved from www.businessinsider.com.
[3] "Swing Kitchen closes German branches: Challenges in the competitive market." (August 5, 2025). Retrieved from www.germanbusinessreview.com.
[4] "Swing Kitchen CEO discusses insolvency and future plans." (August 7, 2025). Retrieved from www.vegandaily.com.
The restructuring process initiated by Schillinger Vegan Holding, responsible for Swing Kitchen, involves businesses across various sectors, including finance, retail, and the broader food industry. Despite the insolvency, some Swing Kitchen locations continue to operate in Austria and Switzerland, signaling the potential for future growth and strategic shifts in the plant-based fast-food industry.
