Burger King's Franchisee Is Filing For Bankruptcy

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The restaurant business has been harmed by the COVID-19 pandemic and the high inflation of 2022. Burger King, too, has feeling the economic pressure.

TOMS King Holdings, a major Burger King franchisee, filed for Chapter 11 bankruptcy earlier this week.

TOMS King is to sell all 90 of its Burger King locations in Pennsylvania, Virginia, Ohio, and Illinois.

According to the franchisee's bankruptcy filing, the pandemic, inflation, rising supplier costs, and labour shortages all harmed recent profitability.

TOMS King employs 2,087 hourly employees and 90 salaried employees. The franchisee is requesting permission to pay those employees.

TOMS King abruptly closed six Burger King locations in Ohio two months ago, indicating financial difficulties.

The company began evaluating its finances in July of last year. Following that evaluation, the franchisee concluded bankruptcy was the best option.

TOMS King isn't the only BK franchisee in trouble. Several Burger King locations were downgraded due to inflation during the summer.

The epidemic hurt Burger King's brand. The Whopper's home was the second-largest US burger chain after McDonald's for decades.

Wendy's surpassed BK in 2020. Burger King's earnings are recovering slowly after the outbreak. BK's third-quarter 2018 same-store sales rose 4% in the US and 10% globally.

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