Burger King's Massive Store Closure 2023

Burger King had a busy year. The franchise has rebranded and reentered the turbulent fast-food market with renewed vigor.

Menu revisions, a snappy new ad campaign, and hundreds of millions of dollars in modernization have completed attempts to compete with U.S. fast-food options. The corporation faces new closures as it fights its competitors.

BK lost 124 units in 2023. In March, Burger King's parent company Restaurant Brands International ended its franchise relationship with EYM King, resulting in 26 closures throughout Michigan.

This year, Toms King and Meridian Restaurants Unlimited went bankrupt. As the company evaluates its situation, closures may continue.

Restaurant Brands International's CEO predicted that the franchise could close 400 restaurants by year's end in a discussion about first-quarter profits.

Though he indicated that he was uncertain about the final count, this already marks a departure from BK's usual 200 closures per year (2019 and 2020 saw under 350).

Burger King's $400 million "Reclaim the Flame" rebranding initiative targets a younger, more varied consumer. Marketing and modernization dominated.

"You Rule" replaced "Have it Your Way" last year. The franchise's 5% sales increase at year's end was attributed to the money and energy injection.

Fans shouldn't worry about BK's closures and profit problems with a new jingle and bright, new restaurants with three-lane drive-thrus.

The number of shops closing may hide America's third-favorite burger joint's long-term destiny. In Q1 2023, BK increased same-store U.S. sales by 8.7% and overall sales by 8.1%.

The closings may also mask Burger King's smart business strategy to grow and improve in a sustainable way. The franchise wants to grow.

Burger King is restricting franchisee expansion eligibility. Only its two highest-profit franchisees can build or buy new restaurants. Burger King's resurgence will determine its numbers.

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