Burger King plans to close hundreds of restaurants before the end of 2023.
The CEO of Restaurant Brands International Inc., which owns Burger King, said this week that they are preparing to close between 300 and 400 locations, Today reported.
In a call announcing Q1 earnings results, Joshua Kobza said the company plans to focus on working with smaller franchisees to "improve the overall health" of the company's franchise system, per Today.
To accomplish that goal, the company will "historically" close "a couple hundred" underperforming restaurants per year. Kobza added that there is a "fair degree of uncertainty regarding exact numbers" of the future closures as the company has already begun to see some recovery, according to Today.
The company did not elaborate on which locations would face closure or present a timeline.
According to multiple reports, 124 Burger King restaurants have already shut down since January, leaving less than 7,000 locations nationwide.
The news comes on the heels of several large BK franchisees recently filing for bankruptcy. The filings led to 26 locations closing in Michigan, along with the closure of 27 locations spanning Wyoming, Utah, North Dakota, Nebraska, Kansas, Montana, and Minnesota, according to the Daily Meal. Illinois-based Toms King also filed for bankruptcy but was able to sell the majority of its 90 stores, per the report.
In September 2022, Burger King shared the details of its $400 million "Reclaim the Flame" plan to accelerate sales growth and drive franchisee profitability. The two-year plan includes $150 million in advertising and digital investments ("Fuel the Flame") and $250 million in high-quality remodels and relocations, restaurant technology, kitchen equipment, and building enhancements ("Royal Reset").
Jose Cil, CEO of Restaurant Brands International, said the plan creates an opportunity for the "iconic brand to 'Reclaim the Flame' and be the first choice for a high-quality meal, an exceptional experience, and a great value."
Tom Curtis, President of Burger King North America, added that the plan is all about "pursuing a better experience" for diners.
"Our plan is focused on a few important priorities — operational excellence, refreshed image, and enhanced marketing — that when put together, provide a superior experience for our guests," he said.
Part of refreshing the company's image includes "modernizing its brand, adding meaning and relevance to historical brand anchors like 'Flame Grilling' and 'Have it Your Way'," as well as broadening "its attraction for a younger and more diverse base of guests."
The plan also includes developing a new menu with "innovative products" including burgers, breakfast, beverages, snacking, and plant-based products. BK has already launched one of those products, the Royal Crispy Chicken -- a premium chicken sandwich with unique flavor variations.
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