Even the major burger chain franchisees are struggling with economic problems that have forced some of them into bankruptcy and restaurant closings.
Even the major burger chain franchisees are struggling with economic problems that have forced some of them into bankruptcy and restaurant closings.
Popular breakfast chain franchise files for Chapter 11 bankruptcy
Burger King franchisee Meridian Restaurants Unlimited owned 120 locations when it filed for Chapter 11 bankruptcy in March 2023, QSR Magazine reported at the time.
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The debtor had 91 restaurants when it held a bankruptcy auction in September 2023 and sold 70 units to the Burger King parent company and four franchisees for about $17 million. There were no qualified bids for the remaining 21 locations.
Two other Burger King franchisees, Toms King, which owned 90 locations, and Premier Kings, which had 172 locations, also filed for Chapter 11 in 2023.
Smaller burger chains file for bankruptcy
Burger chains continued having financial problems in 2024 as BurgerFi, which owned and franchised 144 burger and pizza restaurants nationwide, on Sept. 11, 2024, filed for Chapter 11 bankruptcy protection after its turnaround plan, implemented earlier in 2024, failed to save it from reorganizing.
BurgerFi faced a steep decline in post-pandemic consumer spending because of inflation and increased food and labor costs and needed to stabilize the business through bankruptcy.
BurgerFi International’s parent company TREW Capital Management sold the 85-unit BurgerFi brand to rival Savvy Sliders for an undisclosed amount in December 2024 after the burger chain exited bankruptcy. TREW had purchased the fast-food chain owner out of bankruptcy with a $10 million credit bid in November 2024.
The Little Mint Inc., the parent company of the Hwy 55 Burger Shakes & Fries restaurant chain, finished 2024 by filing for Chapter 11 bankruptcy on Dec. 31, suffering from costs and labor shortages related to the Covid-19 pandemic, which coincided with its brand expansion.
The debtor operated 22 corporate-owned Hwy 55 locations and had 71 franchised locations in the Southeast. It closed 13 corporate-owned locations before it filed for Chapter 11 protection.
