A Once-Beloved Burger Chain Just Filed for Bankruptcy
Throughout 2024, the restaurant industry has been shaken by numerous bankruptcy filings from major chains like Red Lobster and regional spots like Melt Bar & Grilled. Now, a popular fast-casual burger chain has been added to the growing list.
On Sept. 11, BurgerFi International Inc., owner of BurgerFi and Anthony's Coal Fired Pizza & Wings, announced that it has filed for Chapter 11 bankruptcy amid ongoing financial challenges. The filing only includes the 67 corporate-owned locations between both brands, with the franchise-owned restaurants exempt from the bankruptcy proceedings. All 144 corporate-owned and franchised locations across both brands will continue to operate normally.
The filing states that BurgerFi has between $50 million and $100 million in assets and $100 million to $500 million in estimated liabilities, as reported by Restaurant Business.
BurgerFi announced its bankruptcy filing less than one month after filing a 10-Q form with the Securities and Exchange Commission. In this document, the company wrote that it couldn't report its most recent quarterly earnings by the deadline due to "significant adverse developments that occurred with respect to the company's business and liquidity." BurgerFi also noted that it may seek bankruptcy protection at that time.
In July 2023, BurgerFi named Carl Bachmann as CEO and Christopher E. Jones as chief financial officer to strengthen the company's brands. According to a press release, Bachmann and Jones "quickly developed and implemented a strategic plan to address foundational issues, including declining same-store sales, high employee turnover, and a stale menu." The company also began a "top-to-bottom evaluation of its operations," which is ongoing.
As part of its turnaround efforts, the company shared that it has closed 19 underperforming corporate-owned stores and reduced related operating costs. BurgerFi currently has 93 restaurants, while Anthony's has 51.
Last month, BurgerFi hired Jeremy Rosenthal as its chief restructuring officer.
"BurgerFi and Anthony's Coal Fired Pizza & Wings are dynamic and beloved brands, and in the face of a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs, we need to stabilize the business in a structured process," Rosenthal said in a press release. "We are confident that this process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital."
BurgerFi is just one of several restaurant chains that have filed for bankruptcy over the last few weeks, with fast-casual Mediterranean brand Roti and Italian restaurant chain Buca di Beppo recently joining the list.
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