The pressures facing the fast food restaurant chains mean that more and more branches close the doors for better and two great players are not exempt
Two major fast food chains They are throwing the connector to dozens of locations in all US Hard economic conditions And the challenges throughout the industry affect.
Burger King and Jack in the box go out Restaurants with a lower performance In the key regions, with some areas planned to lose all local branches.
In Moldy And Georgia, a major franchisee of Burger King, has presented the bankruptcy of Chapter 11 and closed 18 locations before the presentation. Consolidated Burger Holdings, based in Destiny, Florida, now operates 57 restaurants Burger King after closing. The company cited a significant financial difficulty contributed by Covid-19 Pandemic, the fall of the number of customers and increasing operating costs.
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“In recent years, and especially as a result of Covid-19 Pandemic, the debtors’ business has significantly suffered the loss of foot traffic,” said consolidated Burger in his court files.
The franchisee recorded a dramatic revenue fall, and sales dropped from $ 76.6 million by $ 2023 to $ 67 million last year. Operating losses were also expanded, ranging from $ 6.3 million to $ 12.5 million in the same period.
The business hopes to keep it operational during bankruptcy procedures and actively seeks a buyer. He listed his assets at $ 78 million, according to documents submitted to the United States Failure Court in the Northern Florida district.
Although Burger King’s global brand is better, as sales from the same store increased by 1.5% in the last quarter of last year, franchisees as Burger consolidated are facing the assembly pressure.
The restaurant of the Matriu Brands International is very investing in the remodeling of thousands of Burger King points of sale in all the United States and Canada with the aim of updating 85-90% of the shops by 2028.
In the meantime, Jack in the Box has announced plans to close between 150 and 200 shops with a lower performance than their 22 state network.
Around 80 to 120 of these locations are expected to be closed before the end of the year, with the rest of the obtaining later, according to the individual franchise agreements.
Jack In the Box’s CEO, Lance Tucker, said that closures are part of an aggressive strategy called “Jack on track”, aimed at reducing debt and accelerating cash flow.
The company is aimed at reducing $ 300 million debts over the next two years and hopes that the shop closures will lead to a “consistent positive unit growth”.
Tucker also revealed that the company weighs “Strategic Alternatives” for the TACO, the Mexican -inspired fast food chain, which purchased $ 585 million by 2022. The options could include selling the brand or closing more locations, although no specific details have been confirmed.
The complete lists of which the lists of Burger King and Jack close at the box locations.
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