Burger King is closing more unprofitable locations The chain believes that replacing low-volume units will bolster the brand’s long-term sales growth.
BURGER King closed all of its restaurants in March in a bid to help stop the spread of the deadly coronavirus .
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.
Speaking to analysts Wednesday, Burger King executives said the company plans to close 200 to 250 low-volume locations per year over the next couple of years— higher than the 100 to 130 restaurants per year the company had been closing.
One article stated that burger King is now reopening for dine-in. Restaurant Brands International, the parent company behind Burger King, Popeyes, and Tim Horton’s, has announced that they are preparing to reopen close to 1,000 dining rooms throughout North America.
Why did Burger King close so many franchisees?
Franchisees operate nearly all of them, meaning the company has to convince franchisees to close the units . 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.
What’s wrong with Burger King’s meal sales?
And that’s not good for Burger King. When an entire meal accounts for just 15 percent of sales figures, there’s something missing . Aside from the obvious — customers — Burger King says they’re also missing out on creating a reason for people to make them a part of their morning routine.
When CNN took a look at just why Burger King had fallen behind some of their biggest competitors, part of the reason, they said, was that they were focusing on the wrong thing. Instead of focusing on, say, adding new menu items that will get people coming back regularly, Burger King went a different route: the gimmick.
Another frequently asked question is “What is Burger King’s weak spot in its business plan?”.
Some articles claimed Breakfast, says Restaurant Business, is a huge weak spot in Burger King’s business plan. When you look at just breakfast numbers, an average Burger King only makes about half as much as an average Mc, and donald’s.
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.
Another frequently asked query is “What’s inside Burger King’s’restaurant of the future’?”.
Burger King’s “restaurant of the future,” a prototype set to begin rolling out this year, will feature several novelties: massive drive-thrus, food lockers, conveyor belts, and in some cases. Al fresco dining rooms.
A query 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.