Earlier this year, Burger King declared that up to 400 outlets would close by the end of 2023 across the United States. These are the most recent closings.
Burger King is eliminating “older and lower performing restaurants” to strengthen the overall performance of its franchise network. In May, Joshua Kobza, the CEO of the fast-food company, notified shareholders that between 300 and 400 stores would close by the end of 2023.
By that point, the firm had shut down more than 120 Burger King locations, leaving less than 7,000 left in the US. The fast-food giant has historically closed a few hundred outlets annually, but the most recent totals are comparable to those during the epidemic.
Large portions of closures in particular places have also been attributed to regional franchise owners’ financial challenges. This was the situation in March when 26 Burger King locations in Michigan abruptly closed.
Most Recent Closures of Burger King Restaurants
Six more Whopper restaurants that served charbroiled chicken have been closed in Florida, Nebraska, and New York. A few of these eateries, such as the one in Blue Point, Long Island, New York, have been in business for over 40 years. The locals loved that place because of its 1950s vibe and Hollywood kitsch. It even featured a booth designed to resemble a 1957 Chevy.
By the end of 2023, Burger King will have closed up to 400 outlets nationwide due to fierce competition from restaurants like McDonald’s and Chipotle.
Burger King has experienced difficulties in the US due to the bankruptcies of two significant franchisees despite expanding its store base and comparable revenues abroad.
Burger King shuttered a net of 124 US locations in the first quarter, or 1.7%, to complete the quarter with slightly under 7,000 US restaurants, according to the company’s parent, Restaurant Brands International, in an earnings announcement.
During a conference call with investors, CEO Joshua Kobza stated that the company hopes to close between 300 and 400 more locations this year. Still, it is also looking for additional franchisees with stronger financial positions.
It closes a couple hundred each year on average, he added.
Chairman Patrick Doyle stated during the call that “there will always be a minority (of franchisees) who aren’t dedicated, enthusiastic operators.”
To Get Out of the System, We’ll Work With Them
Burger King’s US comparable sales increased 8.7%, suggesting that the company’s $400 million “Reclaim the Flame” turnaround strategy, which aims to restore market share, revitalize shuttered locations, simplify unduly complex menus and procedures, and attract more youthful patrons, is beginning to bear fruit.
Restaurant Brands International exceeded Wall Street forecasts for first-quarter revenue and earnings on Tuesday despite the Burger King closures. This was made possible by increased traffic and prices at Tim Hortons locations in Canada.
Refinitiv IBES data shows that the company’s global comparable sales increased by almost 10% in the March quarter, exceeding analysts’ projections of 6.5%.
Burger King International saw a 12% increase in sales, while Tim Hortons Canada saw a 16% increase.
Just before noon Eastern Time on Friday, Shares were up 0.6%
Despite growing worries about consumers’ ability to spend this year due to persistently high inflation, large restaurant chains reported excellent sales in the first quarter.
To preserve margins from increased labor and raw material expenses over the past year, Chipotle and McDonald’s Corp. exceeded quarterly profit and sales projections.
Burger King has experienced difficulties in the US due to the bankruptcies of two significant franchisees despite expanding its store base and comparable revenues abroad.
FAQs
How Come Burger King Locations Are Closing?
The CEO of Burger King’s parent company, Restaurant Brands International, Joshua Kobza, claims that closing many locations is not unusual. Kobza revealed during a Q1 earnings results call that historically, “a couple hundred” Burger King locations close annually. In addition to the 124 Burger King stores that have already closed this year, up to 400 more sites could close by the end of 2023.
Kobza and Chairman Patrick Doyle stress that the franchise operators’ commitment will be the main priority. Doyle states of franchisees, “There will always be a minority who aren’t committed, passionate operators.” “We’ll work with them to get out of the system.” To “improve the overall health,” Kobza also says that cooperation with smaller franchises will occur.
Will Burger King Close More Locations?
According to Kobza, it depends on how many 300–400 already allocated stores are closed. Although uncertain, he claims that the company is already starting to recover at a “pace of recovery.”
Which Burger King locations are closing?
While the specific restaurant locations that will close remain unknown, some are adopting the closure patterns. Thus far, Burger King locations are closing in the Midwest and certain Western states. There have already been several notably significant shop closures in states like Michigan and Illinois. Due to the prevalence of Burger King locations, states like Minnesota, Montana, Kansas, Nebraska, North Dakota, Utah, and Wyoming may also experience heat waves.
Naturally, we can always rely on our favorite Burger King imitation recipes to enjoy Burger King in the comfort of our own homes in between these store closures.
In Summary
As we come to the end of our investigation of Burger King’s decision to close 400 locations, it is clear that this decision reflects the fast-food industry’s dynamic nature rather than just a straightforward economic choice. Readers thoroughly grasp this meaningful change in the fast food industry by comprehending the reasons behind the closures, the effects on specific people, and the wider ramifications.