Second major Burger King franchisee declares bankruptcy (2024)

FAQs

Did Burger King franchisee declare bankruptcy? ›

Premier Kings, a 172-unit Burger King franchisee, declared bankruptcy in late October after the death of its owner created operational instability. It's the third Burger King franchisee to enter court proceedings this year. The company was founded in 2009 by Manraj Sidhu.

U.S. chain Burger King has not announced it is shutting down operations, despite social media posts speculating over the brand's fate in April 2024.

Burger King's parent is acquiring the fast-food chain's largest U.S. franchisee, an operator of more than 1,000 of its eateries, in a deal valued at 1 billion U.S. dollars as part of the company's turnaround drive to rapidly upgrade and remodel its restaurants.

Burger King parent has seen multiple franchisees go bankrupt

Since the end of the Covid pandemic, RBI has seen three large Burger King franchisees file for Chapter 11 bankruptcy. That included Premier Kings, a 172-location operator owned by the same deceased operator as Premier Cajun Kings.

Burger King struggled with weak sales coming out of the pandemic while costs for labor and food took off. Two large-scale operators, Meridian Restaurants and Toms King, filed for bankruptcy and were sold. In both cases, however, not all of the stores were sold and numerous locations were shut down.

As per records, Burger King generates approximately $1 billion through its sales. And an individual burger king franchise owner can make more than $1 million annually through its sales, and some top-performing locations can make more than $2 million, which works outs to $85,000 annual profit.

The parent company of Burger King is buying out its biggest franchisee in the U.S. for about $1 billion and will renovate hundreds of its locations. Restaurant Brands International Inc. will acquire all of the issued and outstanding shares of Carrols Restaurant Group Inc.

The bad news is that it fell into third place in burgers behind Wendy's in 2020; it ranks far behind McDonald's on just about every measure of operational strength, from sales per restaurant to app downloads; and last year, a string of franchisees filed for bankruptcy.

He hasn't chosen the restaurant by taste, but by principle: KFC and Pizza Hut are among the U.S. multinational chains — such as Starbucks, McDonald's, Burger King and Coca-Cola — that are being boycotted by consumers of all religious and ethnic backgrounds from the Middle East and other Muslim-majority countries, due ...

Carrols Restaurant Group, Inc. is an American franchisee company and is the largest Burger King franchisee in the world; Carrols owns and operates over 1,000+ Burger Kings, and 55 Popeyes restaurants. The company has operated Burger Kings since 1976 in locations across 23 U.S. states. Carrols Restaurant Group, Inc.

Who owns Burger King now? ›

RBI owns four of the world's most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, POPEYES® and FIREHOUSE SUBS®. These independently operated brands have been serving their respective guests, franchisees and communities for decades.

After Insta-Burger King ran into financial difficulties, its two Miami-based franchisees David Edgerton (1927–2018) and James McLamore (1926–1996) purchased the company in 1959 and renamed it "Burger King".

Burger King employee Kevin Ford hadn't missed a day of work in 27 years. In the early days, his focus was on paying the bills and raising two daughters as a single father.

The industry veteran will be replaced by COO Josh Kobza. Restaurant Brands International announced Tuesday that CEO Jose Cil is stepping down, effective March 1. He will be replaced by Josh Kobza, who's served as COO since January 19.

Restaurant Brands International

Restaurant Brands Internationa...

A telling sign of Burger King's decline is the steady decrease in sales. A major issue contributing to this slide is inconsistency in product quality and customer service. Customers expect the same taste and quality in their favorite Whopper, whether they're in New York or New Delhi.

Carrols Restaurant Group currently owns 1,022 Burger King restaurants across 23 states, as well as 60 Popeyes restaurants. Restaurant Brands International will acquire the company's issued and outstanding shares that were not already held by RBI or its affiliates.

Franchisees desiring to cease operations will normally file a Chapter 7 bankruptcy. In this scenario, an independent trustee is appointed to liquidate the franchisee's assets. In rare cases, a Chapter 7 trustee may seek to assign the franchise agreement to a buyer.

Carrols is the largest Burger King franchisee in the country, operating 1,022 Burger King restaurants in 23 states and 60 Popeyes locations.