This is some rough news in the Sunshine and Peach states.
Right on the heels of losing several factories, Florida has recently seen one of its big restaurant franchisees, Consolidated Burger Holdings, collapse into Chapter 11 bankruptcy.
The results? 57 Burger Kings across Florida and Georgia are under threat as bankruptcy proceedings get underway.
The bankruptcy
Consolidated Burger Holdings filed for Chapter 11 bankruptcy in mid-April after investing over $30 million into its portfolio of Burger Kings since their 2018 acquisition.
With operational losses accelerating and a debt load topping $30 million, it probably seemed impossible for the franchisee to dig out.
And that’s even after closing 18 restaurants earlier this year to try and streamline.
Right now, Consolidated Burger Holdings is going through a court-managed process to sell its Burger Kings – but so far, no news on potential buyers.
Bigger headwinds
Operating any restaurant is difficult right now, as the combination of food inflation, labor shortages, and low consumer confidence (which reduces spending) is just – rough.
But that goes double if you’re operating a Burger King, for two reasons:
- Beef prices have been particularly hard-hit (thanks in part to ICE raids), and
- Burger King isn’t exactly a top-tier beloved brand these days. Gone are the days where it was directly competing on something close to an even playing field with McDonald’s.
Those are tough headwinds, and it’s clear they’re claiming a big victim here.
Please leave a comment with well-wishes for the impacted employees – or insights on what else is happening to impact Burger King these days.
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