Burger King has announced that it will be discontinuing 26 restaurants in the month of April, leading to a reduction of 424 employees.
Starting from March 17th and continuing through April, the chain has been forced to shutter its doors due to “unforeseen business circumstances.”
The closures will impact stores primarily in Detroit but also reach the nearby cities of Dearborn Heights, Ecorse, Ferndale, Flint, Highland Park, Livonia, Royal Oak Southfield Walled Lake Warren, and Whitmore Lake.
Click on Detroit announced that all 26 Michigan locations will shut their doors for good by April 15th.
In an addressed dispatch to the Department of Labor and Economic Opportunity, EYM King of Michigan LLC notified that they were unable to reach a consensus with Burger King Corp.
The Detroit East 8 Mile Road location is unfortunately the hardest hit of all franchises, with 30 employees set to be laid off.
According to a poll conducted by Comparably of Burger King employees, an estimated 2,585 people revealed that 29% of them experienced anxiety over potential layoffs.
On average, staff had a moderate degree of trust in the company’s future prospects; meanwhile, customers anticipated Burger King to maintain its current status.
On the first of March, Restaurant Brands – Burger King’s parent company – ushered in a new CEO, Josh Kobza (previously COO) to succeed Jose Cil as they strive to reclaim their position as the United States’ second-largest hamburger chain.
Last year, the company experienced a positive Q4 outperforming 2021’s net of $262mn by an impressive margin with $336mn in total earnings.
Although no definitive agreement was reached, it is possible that the locations could be reopened in the future with another company at their helm. Unfortunately, these closures come as a part of an increasingly common trend of high-street stores shutting down across the country.
As Covid has taken its toll, many shops have had difficulty restoring their customer base due to the mounting cost of living.
At the onset of this month, Applebee announced that a range between 10 and 20 of their restaurants would cease operations by 2021.
After Applebee’s was looking to make a resurgence in 2017 by closing restaurants, the onset of the pandemic resulted in an unfavorable slope.
Despite the odds, President Tony Moralejo remains committed to launching more eateries in 2021 than were opened in 2022.
According to FSR magazine’s January 2023 report, the nation is predicted to experience a sharp decline of 15%, or around 100,000 restaurants – a dramatic contrast compared with its recent years of growth.
The closures resulted from costly leases, dwindling customer patronage, and increasing salary demands.
Last year, nearly 23,500 independently-owned locations had to shut down due to an 8% decrease in business. These businesses have been fighting hard ever since, trying desperately to restore their former glory.
As inflation continues to erode away consumer savings, chains will also be strongly impacted.
At the conclusion of last year, data revealed that American families could anticipate spending an additional $433 per month in comparison to 2021 as prices began to rise.
Last week, Walmart announced that it would be shuttering 12 outlets across nine states this year as a result of declining profits.
The company further revealed that it would be laying off hundreds of employees at five separate facilities.
Last Tuesday, Foot Locker announced that it would be shuttering 420 stores in the United States within a three-year period to reduce costs and introduce new store concepts. This step is expected to bring an additional $1 billion in revenue for the company.
What stores are in the process of shutting their doors?
Dearborn Heights: 20401 West Warren Avenue
Detroit: 17440 East Warren Avenue
Detroit: 20200 Grand River Avenue
Detroit: 2155 Gratiot Avenue
Detroit: 9239 Gratiot Avenue
Detroit: 18021 Kelly Road
Detroit: 16245 Livernois
Detroit: 9871 Livernois
Detroit: 12661 Mack Avenue
Detroit: 20240 Plymouth Road
Detroit: 13600 West McNichols Road
Detroit: 15500 West 7 Mile Road
Detroit: 8201 Woodward Avenue
Ecorse: 3863 West Jefferson Avenue
Ferndale: 10336 West 8 Mile Road
Flint: 3801 Clio Road
Flint: 3625 South Dort Highway
Highland Park: 13324 Woodward Avenue
Livonia: 28203 Plymouth Road
Livonia: 34835 Plymouth Avenue
Royal Oak: 31456 Woodward Avenue
Southfield: 30711 Southfield Road
Southfield: 23660 Telegraph Road
Walled Lake: 1113 East West Maple Road
Warren: 2411 East 8 Mile Road
Whitmore Lake: 9774 East M-36