I wouldn't normally do this, but I can't subject anyone to this horrific formatting. Full story:
Two major fast food chains are pulling the plug on dozens of locations across the U.S. as tough economic conditions and industry-wide challenges take their toll.
Burger King and Jack in the Box are shutting down underperforming restaurants in key regions, with some areas set to lose all local branches.
In Florida and Georgia, a major Burger King franchisee has filed for Chapter 11 bankruptcy and already closed 18 locations ahead of the filing. Consolidated Burger Holdings, based in Destin, Florida, now operates 57 Burger King restaurants after making the closures. The company cited significant financial hardship brought on by the COVID-19 pandemic, falling customer numbers, and increasing operating costs.
“Over the past several years, and particularly as a result of the COVID-19 pandemic, the Debtors’ business suffered significantly from loss of foot traffic,” Consolidated Burger said in its court filings.
The franchisee reported a dramatic drop in revenue, with sales falling from $76.6 million in 2023 to $67 million last year. Operating losses also widened, going from $6.3 million to $12.5 million in the same period.
The business is hoping to remain operational throughout the bankruptcy proceedings and is actively looking for a buyer. It listed its assets at $78 million, according to documents filed with the U.S. Bankruptcy Court for the Northern District of Florida.
While Burger King’s overall brand is faring better, as same-store sales rose 1.5% in the final quarter of last year, franchisees like Consolidated Burger are facing mounting pressure.
Parent company Restaurant Brands International is investing heavily in remodeling thousands of Burger King outlets across the US and Canada, aiming to upgrade 85-90% of stores by 2028.
Meanwhile, Jack in the Box has announced plans to close between 150 and 200 underperforming stores across its 22-state network.
Around 80 to 120 of these locations are expected to close before the end of the year, with the remainder shuttering later, depending on individual franchise agreements.
Jack in the Box CEO Lance Tucker said the closures are part of an aggressive strategy called “JACK on Track,” aimed at cutting debt and accelerating cash flow.
The company is targeting $300 million in debt reduction over the next two years and expects the store closures to lead to “consistent, net positive unit growth” moving forward.
Tucker also revealed the company is weighing “strategic alternatives” for Del Taco, the Mexican-inspired fast food chain it acquired for $585 million in 2022. Options could include selling off the brand or closing more locations, though no specific details have been confirmed.
Full lists of which Burger King and Jack in the Box locations are closing have not yet been released.
Well, yeah, when you start charging $3.89 for a fountain drink, the value proposition tends to fade. I can get a double cheeseburger from a local place for under $5, and they bake their own buns around much juicier patties.
The closest fast food to me is Jack in the Box, but after getting hit with the soda costing 11 cents less than the two breakfast items I came in for, along with a long wait at the counter to even be acknowledged ... if you're not fast and cheap, what's your target demo?
Getting rid of BK’s shitty whoppers is probably a net good in the region
Maybe it's just having a more refined palette as I age, but back in the 99-cent Whopper days, they seemed way better. Not that I've at this point had one in years given the (lack of) value proposition, but in general, microwaved, desiccated meat isn't something I seek out.
Their quality decreased as they found more and more ways to cut costs while producing something that appears to be the same. It started with McDonald's, then burger king, now finally Wendy's. All of them reduced quality and increased prices. 5 guys kept the quality the same, but it costs about $25 per person. At that rate, I can buy my own grill and fryer and do it my own damn self for cheaper.
Yeah, if I'm going to spend that much, I'll just go to Red Robin, have a full-service meal and include an overpriced beer. More likely, I'll just go to a local joint with even better food than that.
For sure. Full service is a must at prices like that
I last went to Five Guys in 2018, and it's really good, but not $25 good. I can get five slightly less good but still top-tier double cheeseburgers at a local chain for that price. Not exactly like you're paying for the ambience and personal touch.
This is my experience too. Growing up, Whoppers were good. They tasted like actual burgers, they were a good size, and they were a good price. The last time I had one was years ago now, but it's been so long because at some point they lost all of the flavor. Somehow the patty just tastes like nothing now? I don't really get how they did that to be honest.
I don't think they used to precook batches of patties and then microwave as needed for 20 seconds when someone ordered. I distinctly remember smelling smoke before entering and then watching the flames coming from the grill that a cook was working every time I went in all the way through the mid-2000s. Not really since on the smoke or fire.
Maybe next they'll start microwaving the fries.
Don’t forget the gallon of mayo included in every sandwich! The only edible whopper for a while was the Impossible, but they’ve since started drenching that in mayo too so I just avoid it all.
Decent breakfast sandwiches though, especially if you like tots
I forgot about the Croissan'wich ... I've had my fair share of those over the years. Invariably, the croissant was soggy, but two of those and I was set until dinner for like $3.
I'm sure they've since found a way to fuck that up further, especially with the egg-price rollercoaster.