With Burger King continuing to shut down hundreds of its restaurants yearly, one Business Insider reporter knows why.
Even though the fast-food giant generates billions of dollars in revenue, the reporter believes closing so many restaurants is necessary to prioritize quality over quantity.
Burger King Is Shutting Down 400 Outlets
In 2023, Burger King revealed its plans to shut down 400 outlets.
The fast food giant stuck to its promise, and by the end of 2023, coming into 2024, hundreds of its outlets had been shut down.
Burger King Closed 200 Restaurants in 2023
By the end of 2023, Burger King had closed around 200 restaurants.
Before this, Burger King had 8,864 restaurants across the US, with the number of Burger King units having dropped by 2.8%.
Burger King Has a ”Reclaim the Flame” Campaign
One of the reasons behind the closures is Burger King’s “reclaim the flame” campaign.
The fast food giant is investing $150 million in advertising and digital media, and $250 million in restaurant technology, food equipment, and high-quality remodels.
A Business Insider Journalist Visited Three Burger King Restaurants
A Business Insider journalist visited three different Burger King locations in New York to determine why the mass closures might happen.
She visited the Financial District store, one on the Lower East Side of Manhattan, and one in Brooklyn.
Two Burger King Restaurants Had High Standards
The Financial District and Lower East Side Manhattan Burger King restaurants had higher standards than the Brooklyn one.
The food was cooked to a good standard, there was a good level of cleanliness, and plenty of people enjoying their meals in the restaurant to prove that it should stay open.
The Brooklyn Burger King Was a Shock
Despite her good experiences at the other two restaurants, the journalist’s trip to the Brooklyn Burger King was entirely different.
The cashier and customer were separated by plexiglass. The restaurant was practically empty, and its decor looked like it hadn’t been updated since the 1980s.
The Bulk of Burger King Closures Are Over
As most of the Burger King closures happened in 2023, it is believed that the bulk of these closures are now over.
Even though more Burger King closures are set to happen in 2024, there shouldn’t be as many as in the previous year.
Burger King Is Focusing on Quality Over Quantity
A big part of Burger King closing all these restaurants is so owners can focus on quality over quantity.
As the journalist witnessed, restaurants with very few customers and not turning enough profits are pointless in keeping open. The money can be better spent on restaurants with higher foot traffic, which are more likely to generate high profits.
Burger King’s Sales Have Increased
Since closing down restaurants with low profitability and only keeping those with high profitability, Burger King’s sales have increased.
In just one quarter since losing hundreds of restaurants, Burger King saw a 12% sales increase, and this percentage is expected to rise further.
Burger King Employees Are Worried About Layoffs
With all these restaurant closures, some Burger King employees are worried about being laid off.
While the majority (67%) aren’t worried, others are concerned they could lose their job, with some even admitting to having taken a pay cut just to keep their job.
Changes to Burger King Are Happening Over the Next Few Years
These changes will continue at Burger King over the next few years, but only time will tell if they’re effective or otherwise.
Burger King Executives have said that where they want the brand to be will not happen overnight, nor will it be an instant success. However, the expected and continuing changes are set to make huge improvements to the brand, making Burger King bigger and better than before.
