Burger King has closed six restaurants across America, with plans to close up to 400 stores this year and reinvest money in modernizing the brand.
Stores in Florida, Nebraska and New York have closed or sold, leaving holes in America’s main streets and opening the door to competitors.
In Florida, downtown restaurants at 210 E. State St. and 1981 Kings Road were ‘closed abruptly‘after almost 40 years of serving customers. No reason for the closure was given.
Meridian Restaurants Unlimited – the bankrupt owner of several stores in Lincoln – was also approved to close outlets at 48th and Holdrege Streets, 48th and Van Dorn Streets, and 5940 Havelock Avenue in Nebraska.
Locations at 84th Street and O Street, 17th Street and South Street, 40th Street and Old Cheney Road, and 11th Street and Cornhusker Highway have also been sold to a Kansas-based company, the Lincoln Journal. reported.
Burger King wants to ‘reset’ with $250 million investment as stores across the country struggle
While the reason for the closures was not given, Burger King has closed a series of stores nationwide this year in a push to modernize stores and bring back lost customers.
The Burger King in Blue Point, Long Island officially closed in October after 40 years in business. Greater Long Island said the site was ‘particularly loved by local families for its Hollywood kitsch and 1950s atmosphere’.
Local restaurants on Medford Avenue, Waverly Avenue and Sunrise Highway remain open.
In May 2023, Burger King said it would also crack down on underperforming franchises, estimating that about 300 to 400 low-volume restaurants would close this year.
“I would like to emphasize that there is a fair degree of uncertainty around the exact numbers, and this will depend to some extent on the pace of recovery in the business, which we are already starting to see,” CEO Joshua Kobza said during the meeting. time.
Patrick Doyle, chairman of the RBI, said during the company’s Q1 call earlier this year: ‘There will always be a minority who are not dedicated, enthusiastic operators, and that’s OK.
“We will work with them to leave the system and do something else. There is simply no room for franchisees who are unwilling or unable to work hard to operate restaurants that are better than the system average over the long term.
‘But in these cases we are talking about a small number. We are working on finding partners who really go for it.’
This came as part of one ‘Royal Reset’ $250 million investment plan announced in September last year to modernize 3,000 restaurants across the country.
$50 million in capital would be used in addition to a “similar investment” from franchisees themselves to retouch restaurants with new technology, equipment and building upgrades.
CEO Josh Kobza said he expects up to 400 U.S. locations to close by 2023
The remaining $200 million would go toward financing about 800 restaurant renovation projects.
This includes changing the company’s existing incentive model and providing broader financial support to operators.
A statement said: ‘The renovation program represents a shift towards higher quality renovations and creates a viable path to modernizing the system.
“Through a more thoughtful approach and increased financing, we are creating support for our franchisees to address their most important investments and lay the foundation for revenue and profitability growth in the years ahead.”
Burger King Chief Operating Officer Tom Curtis told RBI: “I think where we have the most opportunity is in redefining or redefining who we are – having a relevant and distinctive voice.”
In Michigan there were 26 locations
A dramatic shift in administration will include changing the company’s existing incentive model and providing broader financial support to operators
The changes could work. In the first quarter of this year, Burger King achieved 12 percent more turnover per store than in the same period last year.
Restaurant Brands International, which also oversees chains such as Popeyes, Tim Hortons and Firehouse Subs, experienced its highest stock price yet on May 3.
In addition, confidence among employees in the future of Burger King appears to be increasing.
A similar one poll of Burger King staff earlier this year, based on 2,585 employees, found that 29% of staff were concerned about layoffs.
Employees had an average confidence rating of 5/10 in the company’s future, while customers thought Burger King would deliver a ‘neutral’ performance.
But as of November 2023, only 17% of employees consider their job at Burger King to be ‘insecure’ or ‘very insecure’. 48% now believe their job is ‘very safe’ or ‘safe enough’.
The brand suffered when two franchisees representing more than 140 locations filed for bankruptcy in April and Meridian Restaurants Unlimited, which has 118 Burger King locations in the U.S., filed for bankruptcy after racking up $14 million in debt.
Burger King locations generate approximately $1.4 million in sales on average, The Sun reports this in April. But some Meridian restaurants had been losing money for years before the uproar, court records show.
While restaurants seem to have gained ground since Covidthe added pressure of the cost of living has deterred customers from dining out.
According to the American newspaper, Burger King had 7,105 locations in the US in 2021 Colorful fool.
