Breakfast and burgers are out, but fried chicken sandwiches are still in high demand! The parent company of Burger King, Popeyes, and Tim Hortons announced this week they will be closing several hundred locations across the three brands.
Burger King wants to add more locations in the U. And narrow its wide unit count gap with rival Mc, and donald’s. So it’s closing restaurants . Specifically, the 7,300-unit fast-food chain plans to close more low-volume restaurants in the coming years as operators’ franchise agreements come due.
This of course begs the query “Why is Burger King closing so many locations?”
Burger King is closing more unprofitable locations The chain believes that replacing low-volume units will bolster the brand’s long-term sales growth.
How many Burger King restaurants will be closing?
“The financial restructuring of Burger King franchisees could result in the closing of 1,000 or more Burger King units–amounting to a 10-percent reduction of its U. S. system.”. Franchisees own more than 90 percent of BK’s 8,000-plus U., and restaurants.
Its three brands have more than 27,000 locations around the world, two-thirds of which are Burger King restaurants. Franchisees operate nearly all of them, meaning the company has to convince franchisees to close the units.
Is Burger King in need of a remodel?
Burger King in particular has a lot of older locations in trade areas that have weakened over the years and are in need of remodel or relocation. RBI believes closing some of these units and replacing them with a newer restaurant in a different location would be beneficial.
What happened to the Burger King at 300 North Sixth Street?
Sixth St. permanently closed its doors Thursday. Crews already were removing signage from the restaurant that afternoon.
Burger King’s move comes as its rival, Mc. Donald’s, also announced that it will pause operations in Russia, including temporarily closing all of its restaurants in the country, a move that is estimated to cost the company around $50 million per month.
Why is Burger King in disrepair?
Retail expert Juanita Neville-Te Rito said the previous management team had let the business fall into disrepair. There had been a lack investment in customer experience and new product lines, she said. Retail expert Juanita Neville-Te Rito says Burger King’s previous management team had failed to invest in the experience for consumers.
A common inquiry we ran across in our research was “What has happened to Burger King in New Zealand?”.
Burger King opened in New Zealand in 1993, and had 83 restaurants with over 2600 staff. But over the last 30 years Burger King had struggled to gain significant market share in New Zealand’s competitive fast food market. The chain held 14.9 per cent of the market in 2018, according to research company Roy Morgan.