That's right, not even Burger King could resist following the trend of closing stores. A major franchisee of the almighty Burger King has had to shutter over a dozen stores and file for bankruptcy protection.
Consolidated Burger Holdings is a Burger King franchise that used to operate 75 stores across Florida and Georgia. Last week, however, they closed almost 20 stores and filed for Chapter 11 bankruptcy protection, according to a first day pleadings document.
It's now left with 57 restaurants, with four of them being in Walmart stores.
This doesn't come as a surprise, however. In the past years since the pandemic, a few Burger King franchises have had to close stores and file for bankruptcy, including Premier Kings, Meridian Restaurants Unlimited, Toms Kings.
The pandemic has categorically changed how we live our lives. Since the 'Dark Times,' Burger King (and many other restaurants) have suffered due to low foot traffic and altered eating habits. Although the chain is still profitable, and some Consolidated Burger Holdings locations are still very profitable, many stores have been costing more than they're making.
Joseph J. Luzinski Explains The Bankruptcy Filing
Speaking on the matter in the filing, Joseph J. Luzinski, the chief restructuring officer, said, "recent increases in costs of shipping and food, decreased availability of labor, and inflation generally have exacerbated the Debtors' cash flow issues."
"As a result, although certain of the Restaurants have remained profitable, others have been operating at a loss, resulting in the Debtors' inability to meet their obligations and achieve the financial metrics required under various agreements."
Considering that "as of December 31, 2024, the Debtors' balance sheets reflect assets of
approximately $77.9 million and liabilities of approximately $77.9 million," it's no wonder they've had to file for bankruptcy.
Since acquiring its stores in 2018, Consolidated Burger Holdings has spent millions on remodels and upgrades for its stores. It is intent on continuing its streak of improvements in the next few years. Focusing on its stronger stores without its weaker locations should allow the franchise to stay running.
I suppose we'll see if their downsizing and refocused efforts will keep them afloat without more stores closing in the process.
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