Miami, Florida-based Burger King, a major fast food restaurant chain owned by Toronto, Canada-based Restaurant Brands International, has announced that they will be closing approximately 400 stores by the end of the year.
The number of employees impacted is unknown since many of the locations are owned by franchises, some of which have already declared bankruptcy.
According to the company, 124 Burger Kings have already shuttered this year, and up to 400 face closure by the end of 2023. The company plans to focus on working with smaller franchisees to "improve the overall health" of the company's franchise system.
Joshua Kobza, Restaurant Brands International CEO, noted, "One of the most important factors is the willingness of our franchisees who have several restaurants to work with us and commit to implementing the changes necessary." And that the company plans to only allow high-quality operators to build or acquire existing restaurants that will operate regionally and with local ownership. There is a "fair degree of uncertainty regarding exact numbers" of future closures. This will depend, to some extent, on the pace of recovery in the business, which we've already begun to see."
Like most large restaurant chains, rising interest rates and rising minimum wages have an adverse impact on the business. The idea of paying a burger flipper $35,000/year seems outrageous, given the lack of an increase in productivity. It is not uncommon to see a $50 bill for a family of four, pricing fast foods beyond the range of its traditionally poor to middle-class customer base.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
