Does the crisis erase Fast Food? In the USA Burger King 400 restaurants
At a news conference earlier in the week, the chief executive officer of Restaurant Brands International Inc., the parent company of Burger King, said it plans to close between 300 and 400 underperforming outlets this year to streamline the fast food brand.
“ Historically, we've closed a couple hundred units of Burger King US ,” Chief Executive Officer Joshua Kobza said in a first-quarter earnings call on Tuesday. Projected closings for this year appear to be well above average.
In the first three months, several Burger King franchisees filed for bankruptcy, including Illinois-based Toms King, Michigan-based EYM King, and Utah-based Meridian Restaurants Unlimited.
Kboza said that " traffic was modestly negative this quarter ," but noted an improvement in year-over-year traffic trends from Q4 to Q1. after all, a CEO must be optimistic.
Burger King closed a net total of 124 U.S. locations, a 1.7 percent reduction, leaving just 7,000 U.S. restaurants at the end of the quarter. The closure of 400 restaurants would triple the closures in the first quarter, bringing abandoned outlets to 5% of the total.
The brand's $400 million “Reclaim the Flame” gamble to recover market share and close underperforming restaurants could also work, as comparable sales increased 8.7% over the quarter. last year.
In addition, the brand strives to simplify its overly complex menus and operations. Though the iconic Whopper's rising costs could be a determining factor in future sales, as rival McDonald's recently found that the menu's price increase has prompted a backlash from consumers. In the USA nine dollars for a hamburger, as requested by Macdonald, is considered excessive.
The problem is that even in the USA, with inflation eating up incomes, people are looking for extreme savings, so much so that the " Dollar Tree Dinner ", a TikTok channel that teaches how to eat at very low cost with packaged products from the "Dollar tree" hard discount stores, all packaged stuff of poor nutritional quality, but with which you can eat for a few tens of dollars, perhaps to the detriment of health.
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The article Does the crisis erase Fast Food? In the USA Burger King 400 restaurants comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-crisi-cancella-il-fast-food-negli-usa-burger-king-400-ristoranti/ on Sun, 07 May 2023 08:00:32 +0000.