The story of Burger King is the story of rags to riches as it started from financial instability, and after facing a plethora of controversies and rumors, it is still standing strong in the market. But today, the million-dollar question that is making buzz in the industry is -Is Burger King going out of business 2023?
Burger King is an American multinational chain of hamburger fast-food restaurants. But how did this million-dollar company end like this? Is it really going out of business? What are the next steps of the company?
In this guide, we’ll discuss these crucial questions, so keep on reading to end your predicament of whether another of your favorite fast-food restaurants is closing or it’s all a bluff.
About Burger King And How It Started
Burger King is an American multinational chain of hamburger fast-food restaurants. It was initially started with the name of ‘Insta-Burger King’ in Jacksonville, Florida.
Later, it faced some financial difficulties, and its two franchisees, David Edgerton and James McLamore, bought the company in 1959 and renamed it ‘Burger-King’.
Over the years, Burger King has changed many ownerships, initiated a new set of campaigns, and expanded its Burger King menu.
In 1957, Burger King introduced its ‘Whooper,’ and since then, it has become its signature product.
In 2014, the Burger King War merged with Time Hortons to form Restaurants Brand International, the parent company of Burger King. Despite its many challenges, Burger King is reported to have 17,796 outlets operating in 100 countries.
Out of which, nearly half the outlets are located in the United States, and 99.7% are privately owned and operated. In 2013, its new owners moved towards a completely new model of franchising.
The manner in which the company licenses its franchises varies depending on the region called master franchises, which is responsible for selling licenses on behalf of the company.
Is Burger King Going Out Of Business?
Burger King is not going out of business.
Although, in 2019, the company closed nearly 250 locations that did not generate income but this doesn’t imply that it is going to shut down.
The company is also planning to close its 900 locations by the end of 2023 due to financial difficulties.
These closures are a part of the company’s strategy to restructure and improve the overall health of the franchisees which have been struggling.
Despite these closures, Burger King is still operating in many countries and has reported an increase in its sales by 8.7%.
Why Is Burger King Shutting Down Its Locations?
All this started amidst the controversies faced by Burger King in 2014. Critics started to accuse the company of tax evasion, and this heavy accusation resulted in building a bad reputation for the company.
And like one thing leads to another, the throne of Burger King started to wobble. As by the end of 2013, Burger King was the second-largest fast-food burger chain in the United States.
However, by the end of 2014, Burger King was ranked four behind McDonald’s, Starbucks, and Subway.
The rumors flared up again after the most recent Russia-Ukraine War as the fast-food restaurant had to close all its outlets across both countries amidst the war.
In addition to this, many of its franchisees were struggling to survive in the market and ultimately filed for bankruptcy.
This also resulted in the closure of a ‘couple of hundred’ franchisees closing every year, said the CEO of Restaurant Brand International, Joshua Kobza.
He also stated that their focus will be more on the successful operation of their franchisees. The Chairman, Patrick Doyle, also spoke on this matter and stated that there will always be a minority who are not that much dedicated and enthusiastic in the operations.
The CEO further added that we’ll work with these kinds of franchisees and ask them to leave the system for the smooth operation of the company.
List Of Already Closed Burger King Locations
These are some locations of Burger King that have already been closed by the fast-food restaurant:
- Dearborn Heights: 20401 West Warren Avenue
- Detroit: 20200 Grand River Avenue
- Detroit: 2155 Gratiot Avenue
- Detroit: 9239 Gratiot Avenue
- Detroit: 18021 Kelly Road
- Detroit: 9871 Livernois
- Detroit: 16245 Livernois
- Detroit: 20240 Plymouth Road
- Detroit: 12661 Mack Avenue
- Detroit: 13600 West McNichols Road
- Detroit: 17440 East Warren Avenue
- Detroit: 8201 Woodward Avenue
- Detroit: 15500 West 7 Mile Road
- Ecorse: 3863 West Jefferson Avenue
- Ferndale: 10336 West 8 Mile Road
- Flint: 3801 Clio Road
- Flint: 3625 South Dort Highway
- Highland Park: 13324 Woodward Avenue
- Livonia: 28203 Plymouth Road
- Livonia: 34835 Plymouth Avenue
- Royal Oak: 31456 Woodward Avenue
- Southfield: 30711 Southfield Road
- Southfield: 23660 Telegraph Road
- Walled Lake: 1113 East West Maple Road
- Warren: 2411 East 8 Mile Road
- Whitmore Lake: 9774 East M-36
List Of Closing Burger King Locations
Here is a list of Burger King locations that are about to shut down:
- 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
Who Are The Top Shareholders Of Restaurant Brand International?
Top Institutional Holders
|Capital World Investors||41,731,550||13.36%||2,692,102,379|
|Pershing Square Capital Management, L.P.||23,348,135||7.47%||1,506,188,238|
|Royal Bank of Canada||22,319,024||7.14%||1,439,800,285|
|Capital Research Global Investors||19,898,620||6.37%||1,283,660,018|
|Edgepoint Investment Group Inc.||13,554,364||4.34%||874,392,050|
|Vanguard Group Inc||11,577,453||3.71%||746,861,517|
|Jarislowsky, Fraser Ltd||7,397,619||2.37%||477,220,417|
|Beutel, Goodman & Company Ltd||7,267,972||2.33%||468,856,889|
|Bank of Montreal/Can/||5,160,511||1.65%||332,904,575|
Burger King Franchise
Burger King Franchises are the individual restaurants that are operated under Burger King and business model.
Burger King has experimented its way to various franchising models, such as regional and international franchising. The company aims to have the majority of its restaurants owned and operated by franchisees to allow the rapid expansion of the business.
Therefore, if you are also looking to own a Burger King Franchise, then generally, it requires a franchise fee of $2500-$50,000.
Over 200 neighborhoods saw Burger King shut down its locations across the United States, which made them question is: Is Burger King going out of business?
But closing some 400 malfunctioning locations doesn’t mean that the entire business will be shutting down.
Moreover, the company is planning to improve the functioning of the non-performing franchisees and make its operations smooth. Through this announcement, the company makes it clear that it has no further intentions of shutting down the entire empire.
There’s no debate that Burger King has gone through many challenges ever since it started, but it’s still a prominent player in the industry.
Is Burger King doing good financially?
Despite the closures, Burger King is well financially. In the second quarter ending June 30, the sales of US restaurant Burger King jumped 8.3% year over year.
Which is the largest Burger King franchise?
The largest Burger King franchise is Carrols Restaurant Group. It is operating in more than 1,000 locations and ended 2021 with approx. $1.7 billion in sales.
Did China buy Burger King?
No, Burger King is owned by Toronto-based Restaurants Brands International. Its Chinese business, which has 1,300 outlets, is operated by Tab Food Investments.