The company handled 57 premises of the fast food chain in the US and had accumulated a debt of creditors exceeding 37 million dollars.
One of the largest franchises of the Burger King chain in the United States He threw in the towel. It’s about Consolidated Burger Holdingsa firm that operated 57 stores, mainly in northern Florida and southern Georgia. After accumulating almost 37 million dollars in debtssubmitted a bankruptcy under Chapter 11. The decision, according to judicial documents, was the result of a complicated combination: falling consumption, constant rise of costs and premises that worked at a loss.
The company came with the water around the neck for a long time. During his last fiscal year, he reported income for 67 million dollars, but closed with a 12.5 million operational deficit. In 2023, the situation had not been better: losses reached 6.3 million. All this while fixed expenses – like rent and debts – remained at levels impossible to sustain.
Burguer King
Gentileness: Burguer King.
The pressures did not arrive only from the market. In January, the own Burger King a trial began for not complying with the remodeling agreements of the premises. Although later they reached an agreement, the relationship was already worn. From the company they affirmed that they are restructuring the franchise system and that the premises that do not invest or do not yield will go to the hands of operators with better results.
But The fall of consolidated was not an isolated case. Other large franchises such as Meridian Restaurants Unlimited, Toms Kings and Premier Kings – which together they handled 378 branches – also broke. All dragged a similar panorama: lower customer flow after pandemic, inflation that does not take an increasingly tight breath and margins. In this context, sustaining the operation became a real act of balance.
The case of Friday´s in Argentina
While some franchises of Burger King in the US They are leaving the system, another traditional brand also wobbles. TGI Friday’sfamous for its American aesthetics and its hamburgers with their own identity, He closed 50 stores between the United States and Colombia. Like other competitors in the field, the strongest blow came after the pandemic, when consumer behavior changed and the cost of maintaining large locals became almost prohibitive.
The company also accepted chapter 11 that raises the bankruptcy with the objective was to reorganize its finances and avoid a total closure. The news generated concern among the followers of the chain, especially in Latin America, where its presence is less but symbolic. In the case of Argentina, however, the situation is different.
TGI Fridays-2.jpg
The Two stores that Friday’s has in Buenos Airesone in Puerto Madero and another in Recoleta, They continue to function normally. The reason is simple: they operate under an independent licenses scheme of the US parent company. Thus, for the moment, There are no changes in sight For the brand in the country.
The global scenario for these franchises is uncertain. In a market that asks for fast food but also affordable prices, the challenge goes through finding models that adapt to new habits while being profitable. Some brands resist. Others, as in this case, They have already entered intensive care.
Source: Ambito
