Hundreds of Burger King restaurants in the United States are going to disappear in the months ahead as the company reports the bankruptcy of some of its biggest operators. A series of challenges are threatening its empire as one of the largest fast food chains in America and the world right now.
New data reveals that Burger King is falling behind major rivals, including McDonald’s, Taco Bell, and Wendy’s, as revenue shrinks and its restaurants continue to lose popularity amongst US consumers. The numbers indicate that the company’s problems are getting exponentially worse in 2023. That’s why today, we are going to expose the factors that are accelerating the demise of this popular brand.
Not one or two, but three major Burger King operators have filed for bankruptcy so far this year. The biggest franchisees in the state of Ohio, Utah, and Michigan have reported severe cash flow problems and a steep decline in foot traffic, sales volumes, and profits for years. They have been operating several stores at a loss, and about 400 of them are going to close doors for good this year. In addition, the company’s executives shuttered 124 underperforming locations between January and May, and another 63 restaurants were eliminated from its portfolio last month, according to reports released by Restaurant Dive.
In all, roughly 10% of Burger King’s 7,400 locations in America are likely to disappear in 2023, industry estimates reveal. Right now, corporate executives are pressuring collapsing franchisees to sell their stores to other operators instead of closing them, which could result in financial losses to the tune of $300 million. Last month, the company joined a filing alongside various creditors and vendors, to force a sale of the remaining units managed by struggling franchisees.
The fast food chain’s US store profitability has been declining for over a decade now. In fact, between 2010 and 2020, Burger King’s annual revenue decreased by 36%. In 2010, the brand made an average revenue of $2.5 billion, whereas that number was only $1.9 billion in 2022. Even before the COVID-19 Pandemic Burger King began to see a concerning decline in revenue. For instance, between 2012-2013 alone, the company’s revenue fell by 41.6%.
The Buy One, Get One for $1 and 2 for $6 promotions on Whoppers and chicken and fish sandwiches proved to be much less popular than the 2 for $5 deal the chain had in 2020, creating a “considerable year-over-year gap” in BK’s earnings.
Despite the strategy shifts announced by the chain, those moves didn’t seem to be enough to help effectively boost its sales. In June, Burger King’s domestic same-store sales grew by 1.1%, but this was a very disappointing gain when compared to its biggest competitor McDonald’s, which grew its sales by 15%. Not to mention, Burger King lost its spot as America’s second-largest burger chain. In 2021, Wendy’s surpassed Burger King to become the nation’s No. 2 burger chain by sales. According to Technomic data, Wendy’s system sales increased by 4.8% last year. Burger King, meanwhile, dropped by 5.4% to $9.6 billion.
It’s clear that the industry giant is not as financially healthy as we all thought and if there’s something that we learned from the retail apocalypse and the bank collapses of earlier this year is that there’s no company that’s too big to fail. A few bad quarters can bring down an empire that has been built over decades, let’s just hope that’s not the case with Burger King.
Article and Video cross-posted from Epic Economist.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
too bad. I’ve always preferred their burgers to McD’s
Good burgers if you like the taste of charcoal.
The local McDonalds has lines around the block at breakfast and lunch. The local Burger King has zero cars with 1-2 customers in the dining room around the same times of day. I’m betting this BK is a goner!
We got a brand new one here in my town. Their service is awful. They’ll close soon I expect.
A real article would have explored possible explanations and spoken to franchisees to understand the problem from their perspective. Here are my guesses: Many locations are in undesirable areas. The menu is stagnant with no innovation or new products. Food quality is mediocre. Promotion and advertising are nonexistent. Management and staff are poorly trained and unmotivated. But who knows?
How would they grift off your observation?
Most know the why already. It’s all in the grift, gotta make that cheddar.
Stopped eating at BK a few years ago when they went out of their way to insult conservatives. I forget the exact circumstances now, but they became extremely political. About the time the impossible burger came out.
I had a Whopper recently after about 15 years. It didn’t taste the same as I remembered and I threw most of it away. The char-broil flavor was totally absent and it was just bland.
How to fix BK?
1) Get rid of the creepy King in your commercials. The “Big Headed” King was somewhat cute for 1 or 2 commercials 15 years ago…..now it’s a semi-gay, creepy thing.
2) Lower the prices across the board.
3) Automate the ordering process, thereby cutting staff.
4) Keep the restaurant CLEAN. Nobody wants to eat at a place that looks or smells like a dump.
Nobody local eats @ our BK. They hire tattooed ladies, and when that arm comes out the window with your food, it churns your stomach. You drive straight to the exit and shitcan it on the way out. You leave hungry. The only people that eat there aren’t locals.
Oh no, was it the Pride Whopper that started all of this? Or was it donating to LGBTQs for every chicken sandwich it sold on Sundays with a smirk in the direction of Chick-fil-a? Other than those two things I can’t imagine why this is happening.
Politics always comes back to bite them in the arse. Just keep your pie-hole shut.
It’s beginning to look more and more like Taco Bell will be fast food king after the fast food wars are over. So far McDonalds and Burger King are the causalities. Just like Demolition Man. Electric cars, no guns just zapper sticks, instant ticket dispensers for word violations…the three sea shells are next people get ready!
They should change the closing stores to drive-thru only format, like Checkers and Rally’s. With outdoor seating. Less overhead on smaller lot sizes too.
I ceased to be a customer when Ronald McDonald and The King were kissing. The Whopper was good, better than the cardboard from McDonalds. The fries are so-so and my dog won’t eat the chicken nuggets. Drive through service was slow.Taken together the King is not the king anymore. I patronize local burger joints, not the chain stores. Much better food and no woke politics.
A year or so ago their CFO came out as woke homosexual supporting puke and took a shot at Chic Filet. I stopped going to Burger King and maybe others did too for the same reason.
Bidenomics at work!