A Burger King franchise, mainly in the mid-west, is closing its doors and has filed for bankruptcy because of ‘unforeseen business circumstances.’
Bye-Bye Burger King – Sadly, Hello Bankruptcy
A Burger King franchise is closing 27 restaurants across seven states, and nine of those restaurants are in Utah, according to court documents.
The restaurants are set to close in Utah, Montana, Wyoming, Minnesota, Kansas, Nebraska, and North Dakota.
The company initially sought court approval to close 23 restaurants on March 29 but last week added four more to the list. The closures represent one out of five of Meridian’s locations.
The company cited “unforeseen business circumstances and not being able to reach a resolution with Burger King Corporation” as its reason for ceasing all operations in Michigan, the March 22 letter said.
Sales volumes were below average for Burger King franchises, which reportedly bring in around $1.4 million per year.
According to a report from The Wall Street Journal last fall, Burger King’s parent company, Toronto-based Restaurant Brands, has installed new executive leadership and earmarked $400 million to boost advertising and revamp everything from restaurant design to the way Burger King’s flagship burgers are constructed.
Here’s Where They Are Closing
According to Business Insider, here’s where the Burger Kings will be closing:
- 209 Nokomis Street, Alexandria
- 926 Central Avenue Northeast, East Grand Forks
- 528 Western Ave, Fergus Falls
- 21 Depot Street, Litchfield
- 205 Lake Street, Long Prairie
- 586 Southwest 1st Street, Montevideo
- 516 East Bridge Street, Redwood Falls
- 100 21st Street North, Moorhead
- 1611 US-12, Willmar
- 1422 West Main Street, Lewistown
- 520 North 27th St, Billings
- 1211 9th Street West, Columbia Falls
- 2201 East Kansas Ave, McPherson
- 3627 South Lincoln Avenue, York
- 2504 O St, Lincoln
- 4230 North 27th Street, Lincoln
- 3765 Gateway Drive, Grand Forks
- 171 East Gateway Dr, Heber
- 7810 South 1300 E, Sandy
- 10235 South State Street, Sandy
- 729 North Main St, Clearfield
- 1466 East 3500 North, Lehi
- 119 East Crossroads Blvd, Saratoga Springs
- 147 East Bangerter Highway, Draper
- 5390 South 1900 West, Roy
- 1660 West North Temple St, Salt Lake City
- 1902 Mountain View Drive, Cody
The Burger King Woes
According to Restaurant Business Magazine, Meridian is also leaving open the possibility of more closures ahead, saying “it is possible, if not likely,” that further analysis suggests more closures are “appropriate.” But the company in a filing said that it doesn’t anticipate closing “all or even a substantial portion of their restaurants.”
In a filing in U.S. Bankruptcy Court for the District of Utah dated April 4, Meridian noted that “over the past several years, and particularly as a result of the COVID-19 pandemic, franchisees systemwide have experienced declining foot traffic.”
Meridian said while its businesses “suffered significantly from loss of foot traffic resulting in declining revenue,” costs like rent, debt service and other financial obligations did not see commensurate declines.
Meridian also cited the impacts of external pressures on its fiscal health, including recent increases in wages (33% the past few years) and the cost of labor, shipping and food inflation (22% the past two years), according to the court filing.
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Updated 4/20/23 8:12am