Burger King to shut down 400 outlets across the country in 2020.

Burger King to Close Up to 400 Locations Across the US

In the heat of a tightening market, Burger King is set to close up to 400 locations across the United States this year as concerns of recession persist. The iconic fast food chain has already closed 124 locations this year up to March. There are 6,964 other U.S. locations still open.

Cracking Down on Underperforming Franchisees

The move to shut down these locations comes as Burger King CEO Joshua Kobza, who claimed between 300 and 400 restaurants would be closed, stated that the company is cracking down on underperforming franchisees, according to the Daily Mail. “There will always be a minority [of franchisees] who aren’t dedicated, enthusiastic operators. We’ll work with them to leave the system and move on to do something else,” Chairman Patrick Doyle said. “There simply is no room for franchisees who are not willing or able to work hard to operate restaurants that are better than the system average over the long term.”

Bankruptcy and Competition

The announcement of the closures across the U.S. comes after Meridian Restaurants Unlimited, a Burger King franchise with over 100 locations, filed for bankruptcy in March. Prior to the filing, the franchise had already shuttered 27 stores in Minnesota, Utah, Montana, Kansas, Nebraska, and North Dakota. Despite its name, Burger King is only the third largest fast food chain in the U.S. It’s outpaced by both McDonald’s and Wendy’s.

Concerns of Recession

Burger King’s expected closures for 2023 come as many in the U.S. face concerns of recession. The number of job openings in the country went down to just 9.59 million for March, making it the lowest level in about two years, according to the Bureau of Labor Statistics Job Openings and Labor Turnover Survey updated Tuesday.

Criticism of Biden Administration

On Wednesday, Sen. J.D. Vance (R-OH) criticized the Biden administration for refusing to negotiate on the current state of the debt plan, saying the president is playing “Russian roulette with the country’s finances.” The White House issued on the same day a report titled “The Potential Economic Impacts of Various Debt Ceiling Scenarios,” which warned that failing to raise or suspend the debt limit could lead to a recession, potentially putting the country in worse shape than in 2008.

• Burger King is set to close up to 400 locations across the United States this year as concerns of recession persist.
• The move to shut down these locations comes as Burger King CEO Joshua Kobza stated that the company is cracking down on underperforming franchisees.
• Burger King’s expected closures for 2023 come as many in the U.S. face concerns of recession.

Despite its name, Burger King is only the third largest fast food chain in the U.S. It’s outpaced by both McDonald’s and Wendy’s.

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