BURGER King closed all of its restaurants in March in a bid to help stop the spread of the deadly coronavirus .
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.
You might be asking “Did a Burger King employee sign say they were’all quitting’?”
A Burger King sign has gone viral after employees of one of the chain’s restaurants left a notice to management that they were “all quitting,” according to ” TODAY ” Digital.
How many Burger King locations are closing each year?
In order to get closer to Mc. Donald’s numbers, they were going to start by closing between 200 and 250 locations. That was a huge jump in closures, as Burger King typically averaged about a 100 to 130-store closure rate every year in the lead-up to this pretty big announcement.
When we were reading we ran into the question “How many restaurants will Burger King close this year?”.
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.
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.
Why is Burger King falling behind in sales?
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.
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.
Another common inquiry is “What is Burger King’s weak spot in its business plan?”.
I found the answer is 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.
This begs the question “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.