McDonald’s, Burger King, Wendy’s rival closing more restaurants

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McDonald’s, Burger King, Wendy’s rival closing more restaurants

Both Burger King and Wendy’s have closed or plan to close hundreds of restaurants.

In the case of Burger King, the company has lost key franchise operators. That’s something the chain mitigated by buying some closed locations, but it has lost dozens of restaurants.

Wendy’s, which also uses a franchise model, has taken a more aggressive approach to its fleet of restaurants. Interim CEO Ken Cook laid out those plans during the chain’s third-quarter earnings call.

“In our last earnings call, I outlined three key initiatives: getting to know our customers better, simplifying our programming and execution, and working more closely with our franchisees as One Wendy’s. In addition to these initiatives, we have made a strategic decision to prioritize growing average unit volume over net unit growth in our U.S. business,” he said.

This led the company to launch “Project Fresh,” a comprehensive turnaround plan to drive profitable growth and long-term value in its US system.

In addition, the chain is evaluating its underperforming restaurants with a focus on improving their performance.

“For some locations, it’s about making operational changes or using technology. For others, we’re improving productivity by aligning work hours to better match early morning and late afternoon hours in particular,” shared Cook.

For some locations, the solution will be more dramatic.

“In other cases, the solution is to close consistently underperforming restaurants. These actions strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” he said.

More restaurants

The chain expects to close about 400 struggling locations to free up capital to improve remaining locations.

“Investments include new kitchen equipment to ensure the highest quality, best-tasting food and technology upgrades such as digital menu boards to increase productivity and give our teams more time to focus on hospitality,” added the interim CEO.

Although it hasn’t been as public about its problems as Wendy’s or Burger King, Hardee’s has suffered from a steadily shrinking restaurant base. Bandhas have occurred for various reasons.

  • In 2023, Summit Restaurants Holdings, Hardee’s flagship franchisee, filed for Chapter 11 bankruptcy. That led the company to close about 40 Hardee’s locations in several states in the Midwest and South, which it attributed to poor performance at all restaurants and a lack of in-store foot traffic.

  • By 2024, Hardee’s has closed locations in at least seven cities in Illinois and already has several closings in 2025, including one in Delaware.
    Source: FinanceBuzz

  • Hardee’s sister brand, Carl’s Jr. had to suffer the same fate. Over the past several months, it has closed several locations, including more than 20 restaurants in Australia last year and one in Georgetown, Texas.
    Source: 7 News Australia

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