KATY, Texas (Covering Katy News) – Two popular Panera Bread locations familiar to Katy residents — one on the Katy Freeway and another near Katy Mills mall — are among more than a dozen stores that have permanently closed after their operator filed for bankruptcy and faced a federal lawsuit from Panera Bread.
When Covering Katy visited the store near Katy Mills on Monday afternoon, a message taped to the door said "Temporarily closed, will reopen in the near future." But if it reopens, it's not likely to be a Panera Bread because the corporation has ordered the franchise to close its doors for good.
What we know
Records show EYM Cafe 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.
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 cafes. Notices of default and termination were sent for at least 10 stores between March and May, the suit says.
Covering Katy News
A message taped to the door of the Panera location near Katy Mills says it will reopen in the near future.
Records show EYM Cafe of Texas LLC filed for Chapter 11 bankruptcy protection on Aug. 2, 2025, according to Fox 26. According to bankruptcy records, the company reports owing between $10 million and $50 million to hundreds of creditors.
Employees say the stores closed Aug. 1.
Bankruptcy statements and property records show the locations of the now-closed locations once operated by EYM Cafe include the two Katy area stores as well as locations in Conroe, The Woodlands, Montgomery, Spring, Cypress and Tomball.
EYM Cafe of Texas LLC, a franchisee of Panera, operated 15 stores across the Houston area, including the locations at 19506 Katy Freeway and 25546 Kingsland Blvd. near Katy Mills.
Chad Rainey was an assistant general manager at one of the affected stores. He told Fox 26 News he moved locations for a promotion 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.
"I'll be on the street. I have no vehicle - no nothing. Me and my wife will be on the street," he said.