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Daily Mirror
Daily Mirror
World
Liam Buckler

Burger King to close up to 400 stores by end of year as CEO admits it's a historic high

Burger King may have to close up to 400 stores by the end of the year with the CEO warning underperforming outlets will be the first to go.

The fast-food burger chain is axing the most stores in its recent history, according to CEO Josh Kobza. as the company usually only closes a couple of hundred stores annually.

According to its earnings release, the iconic chain has already shut 124 locations in the year up to March across the US.

Although there are plans to shut 300-400 restaurants, not all of them will shut, according to Mr Kobza, who admitted there is "a fair degree of uncertainty" around the plans but admits the proposed closures are a 'historic high.'

CEO Josh Kobza announced the cuts (linkedin/joshkobza)

He admitted sales figures have fluctuated between different Burger King stores across the US but the company is seeking to find additional franchisees this year.

Chairman Patrick Doyle said: "There will always be a minority [of franchisees] who aren’t dedicated, enthusiastic operators. We’ll work with them to leave the system and move on to do something else.

"There simply is no room for franchisees who are not willing or able to work hard to operate restaurants that are better than the system average over the long term."

Despite the fast-food chain having better-than-expected sales in the first quarter, the axing of the stores is being made to "improve the overall health of the system."

Mr Kobza said: "If they can't, we have operators ready to step in and do what's required."

"We're feeling increasingly positive about the case path forward this year and into the future."

The announcement comes after two Burger King franchisees declared bankruptcy earlier in the year.

Stores across Minnesota, Montana and Utah will close (Corbis via Getty Images)

Meridian Restaurants Unlimited, and TOMS King Holdings declared bankruptcy due to a reported decline in sales and customers.

Meridian Restaurants will shut 27 locations across seven states after racking up a reported $14million debt.

The stores across Minnesota, Montana and Utah will close - with more on the way, according to reports.

The franchisee admitted it was "possible, if not likely" more stores would face the axe as the company tries to negotiate rent and shop improvements with landlords.

The chain was America's second biggest burger restaurant after McDonald's but lot its spot to Wendy's in 2020.

Top business analysts warned the company was at risk of entering a "death spiral" if they failed to change and keep up with their rivals.

Below is a list of franchise stores set to shut in 2023.

Michigan

2155 Gratiot Ave

9871 Livernois

8201 Woodward Ave

18021 Kelly Rd

20200 Grand River Ave

13600 W. McNichols Rd

15500 W. Seven Mile

20240 Plymouth Rd

12661 Mack Ave

9239 Gratiot Ave

17440 E. Warren

16245 Livernois Ave

3863 W. Jefferson Ave.

10336 W. 8 Mile Rd

3625 South Dort Hwy

3801 Clio Rd

13324 Woodward Ave

28203 Plymouth Rd

34835 Plymouth Ave

31456 Woodward Ave

23660 Telegraph Rd

30711 Southfield Rd

1113 E. West Maple Rd

2411 E. 8 Mile Rd

9774 E. M-36

Burger King is set to shut up to 400 stores by the end of 2023 (Getty Images)

Minnesota

209 Nokomis Street, Alexandria

926 Central Avenue Northeast, East Grand Forks

528 Western Ave, Fergus Falls

21 Depot Street, Litchfield

205 Lake Street, Long Prairie

586 Southwest 1st Street, Montevideo

516 East Bridge Street, Redwood Falls

100 21st Street North, Moorhead

1611 US-12, Willmar

Montana

1422 West Main Street, Lewistown

520 North 27th St, Billings

1211 9th Street West, Columbia Falls

Kansas

2201 East Kansas Ave, McPherson

Nebraska

3627 South Lincoln Avenue, York

2504 O St, Lincoln

4230 North 27th Street, Lincoln

North Dakota

3765 Gateway Drive, Grand Forks

Utah

171 East Gateway Dr, Heber

7810 South 1300 E, Sandy

10235 South State Street, Sandy

729 North Main St, Clearfield

1466 East 3500 North, Lehi

119 East Crossroads Blvd, Saratoga Springs

147 East Bangerter Highway, Draper

5390 South 1900 West, Roy

1660 West North Temple St, Salt Lake City

Wyoming

1902 Mountain View Drive, Cody

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