Synergy Restaurant Gift Cards, a multi-restaurant gift card program founded in 1995 and long sold through retailers such as Costco, has announced it is winding down operations and preparing to file for Chapter 7 bankruptcy. According to a notice recently circulated to cardholders, all Synergy Restaurant Gift Cards, both physical and digital, will cease to be redeemable after January 31, 2026, effectively giving customers days, not months, to use money they already paid for.
The national program is operated by Synergy World, Inc., a San Diego company headquartered in Miramar. The company is led by Larry Kantor, President of Synergy World, Inc., and Joel Kantor, who serves as CEO.
In a letter addressed to “Synergy Restaurant Gift Card Network Cardholders,” posted on the website's homepage, the company stated that its current business model “no longer provides viable margins” and cited ongoing financial losses. The notice confirms Synergy World is in the process of winding down and expects to file for Chapter 7 bankruptcy protection, a liquidation process that typically leaves unsecured creditors, including gift card holders, at the back of the line.
What’s striking is not that a gift card company failed, that happens, but how little notice consumers were given. Many customers only learned of the shutdown through social media posts, Reddit threads, or word of mouth. Some cardholders report having purchased Synergy cards as recently as December, unaware that the company was weeks away from collapse. Others say participating restaurants have already stopped accepting the cards, uncertain whether they’ll ever be reimbursed.
In short: consumers are being told to rush out and spend their balances immediately, while restaurants are being asked to honor gift cards tied to a company entering liquidation.
For years, Synergy’s pitch was convenience. The gift cards could be purchased in one market and redeemed at participating restaurants across multiple states, including California, Arizona, Nevada, New Mexico, Colorado, and Texas. At its peak, the program claimed participation from more than 400 restaurants, many of them small, locally owned businesses.
That flexibility made the cards popular holiday gifts, and also makes this shutdown especially disruptive. A card bought for future dinners, celebrations, or travel is now effectively expiring overnight. Online, frustration has been swift and blunt.
On Reddit’s Costco forum, users reported restaurants refusing cards, others racing to burn through balances, and widespread confusion about whether balances would be honored at all. One commenter summed it up succinctly: “I guess the synergies just weren’t there.”
Participating restaurants are also left exposed. With Synergy World moving toward Chapter 7 liquidation, there is no guarantee establishments will be reimbursed for honoring outstanding cards. Several restaurant owners have reportedly stopped accepting them entirely, a rational decision that nonetheless leaves consumers holding the bag. This dynamic - consumers pressured to spend quickly, restaurants pressured to decide whether to accept risky payment - is the inevitable result of late disclosure.
One notable exception appears to be Costco. Multiple cardholders report that Costco locations are accepting returns and issuing refunds for unused Synergy Restaurant Gift Cards, with no stated deadline and reportedly without requiring extensive documentation or explanation. While Costco has not publicly issued a formal policy statement, customers say refunds are being processed in-store, offering a rare and immediate form of consumer protection amid the broader collapse of the program.
Gift cards are effectively short-term loans from consumers to companies. The entire system relies on trust: trust that the value will be there when you’re ready to use it. By providing only days of notice before rendering cards worthless, Synergy World has severely undercut that trust, not just in its own program, but in multi-restaurant gift cards more broadly. It’s a cautionary tale for consumers who assume gift cards are “safe” simply because they’re sold at big-box retailers or tied to familiar restaurants.
UPDATE:
Since publication, multiple restaurant operators and cardholders tell SanDiegoVille that Synergy has begun rapidly pulling or disabling its card-processing machines at participating restaurants, effectively shutting down the system earlier than many customers expected. Several sources say the Synergy terminals stopped functioning altogether as of January 30, leaving restaurants unable to process gift cards even if they wanted to honor them. The Synergy Gift Card website has also seemingly been de-activated.
The result has been widespread confusion and escalating tension on the ground. Cardholders, already racing against the clock, are reportedly showing up at restaurants expecting cards to work, only to be turned away by staff who no longer have the technical ability to accept them. In some cases, frustrated customers have directed their anger at restaurant employees who have no control over the situation and no clear guidance from Synergy.
Restaurant owners and managers now find themselves caught squarely in the middle of a collapse they did not create: customers demanding redemption, a payment system that no longer functions, and no assurance they would ever be reimbursed even if cards could be processed. Several operators described the situation as chaotic, with front-line staff forced to explain a corporate bankruptcy and payment failure during already busy service hours.
This development further undercuts Synergy World’s public messaging that cards would remain usable through January 31. In practice, the system appears to be unraveling in real time, leaving consumers and small businesses to absorb the fallout.
Gift cards are effectively short-term loans from consumers to companies. The entire system relies on trust: trust that the value will be there when you’re ready to use it. By providing only days of notice before rendering cards worthless, Synergy World has severely undercut that trust, not just in its own program, but in multi-restaurant gift cards more broadly. It’s a cautionary tale for consumers who assume gift cards are “safe” simply because they’re sold at big-box retailers or tied to familiar restaurants.
Compounding the problem is timing. The shutdown is unfolding during San Diego Restaurant Week, when many participating restaurants explicitly prohibit the use of gift cards, promotions, or third-party discounts because menus are already offered at reduced prix-fixe pricing. That means a significant number of Synergy-affiliated restaurants may be unavailable to cardholders precisely when they are being told to urgently spend their balances. In effect, customers are being rushed to use gift cards at the exact moment when many of the listed restaurants won’t honor them, a logistical nightmare that further limits already shrinking options.
Synergy World has directed customers to monitor its official Instagram page for updates, an unusual and insufficient channel given the stakes involved. Historically, balances could be checked at synergygiftcards.com, though access and functionality have reportedly been inconsistent in recent days.
At this point, cardholders should assume January 31, 2026 is a hard deadline, verify balances immediately, and confirm acceptance directly with restaurants before dining. Those who purchased cards recently may wish to contact their credit card issuers to inquire about possible chargebacks.
As for Synergy World, its 30-year run ends not with celebration or transparency, but with confusion, urgency, and a lot of unhappy customers wondering why they were given so little time to react.
At this point, cardholders should assume January 31, 2026 is a hard deadline, verify balances immediately, and confirm acceptance directly with restaurants before dining. Those who purchased cards recently may wish to contact their credit card issuers to inquire about possible chargebacks.
As for Synergy World, its 30-year run ends not with celebration or transparency, but with confusion, urgency, and a lot of unhappy customers wondering why they were given so little time to react.
Since publication, multiple restaurant operators and cardholders tell SanDiegoVille that Synergy has begun rapidly pulling or disabling its card-processing machines at participating restaurants, effectively shutting down the system earlier than many customers expected. Several sources say the Synergy terminals stopped functioning altogether as of January 30, leaving restaurants unable to process gift cards even if they wanted to honor them. The Synergy Gift Card website has also seemingly been de-activated.
The result has been widespread confusion and escalating tension on the ground. Cardholders, already racing against the clock, are reportedly showing up at restaurants expecting cards to work, only to be turned away by staff who no longer have the technical ability to accept them. In some cases, frustrated customers have directed their anger at restaurant employees who have no control over the situation and no clear guidance from Synergy.
Restaurant owners and managers now find themselves caught squarely in the middle of a collapse they did not create: customers demanding redemption, a payment system that no longer functions, and no assurance they would ever be reimbursed even if cards could be processed. Several operators described the situation as chaotic, with front-line staff forced to explain a corporate bankruptcy and payment failure during already busy service hours.
This development further undercuts Synergy World’s public messaging that cards would remain usable through January 31. In practice, the system appears to be unraveling in real time, leaving consumers and small businesses to absorb the fallout.
Originally published on January 29, 2026. Updated on January 30, 2026.
