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Economic instability, labor pressure, and changing consumer habits are just a few of the challenges faced by U.S. restaurant chains this year. Many beloved companies struggled with rising borrowing costs and intense competition for customers, which led to some shocking bankruptcies throughout the year. In this video, we remember the biggest bankruptcies of 2023, as well as the latest filings sending shockwaves across the market right now.
One major example is Burger King. In the first half of 2023, two large operators, and a small franchisee filed for Chapter 11 protection citing rising debt and declining revenues. Meridian Restaurants, Toms King, and Restaurant Brand International also conducted store closings as a part of their restructuring plan. So far this year, more than 400 Burger King restaurants have been shut down, and even more are likely to stop operating in the next few months. That’s because eleven days ago, another big franchisee operator has gone bankrupt. Premier Kings, which managed stores in Alabama, Georgia, Tennesse, South Carolina, and Florida, also sought court protection in an attempt to save some of its 172 Burger King units. The company reported a $32 million drop in sales and a net operating loss of $27 million. More details about the proceedings are going to be shared in December, but lenders believe about one-third of the Premier King locations will eventually cease operations due to underperformance.
