The iconic burger fast-food chain, Burger King, has announced that it would close up to 400 restaurants by the end of 2023. Those stores with high underperformance will be the first to go, it added.
While 2023 was supposed to be an economic recovery from the harsh impact of the pandemic, many businesses didn’t make it and resorted to mass layoffs and shutdowns, among other strategies. As for the multinational burger brand, its several large franchisees (Illinois-based Toms King, Michigan-based EYM King, and Utah-based Meridian Restaurants Unlimited) have filed for bankruptcy, and the closure of between 300 to 400 locations is due to underperformance. This is according to the first quarter financial report of Restaurant Brands International Inc. (RBI), a parent organization that owns Burger King, Tim Hortons, Popeyes, and Firehouse Subs.
In addition to the report, 124 Burger King restaurants have already closed in the U.S., thus bringing to a store count total of 6,964 in the home country. CEO of RBI Joshua Kobza said that the margin of 300-400 is a record high since the company “historically” closes “a couple hundred” locations each year.
Now, the major query as of this time wouldn’t be about looking for Burger King deals or asking what time does Burger King close, but rather which of its locations are targeted to be shut down. Kobza disclosed that there is “a fair degree of uncertainty” around the plans, so it may or may not be that all 300 to 400 stores will close their doors this year.
“This will depend, to some extent, on the pace of recovery in the business, which we’ve already begun to see,” a news site quoted him.
Moving forward, the Company intends to focus on stores with stronger finances and working with smaller franchisees to “improve the overall health” of its franchise system. Kobza shared that they will only allow high-quality operators to build or acquire existing restaurants that can operate regionally and with local ownership.
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