Burger King bankruptcies 2023: List of outlets closing and all you need to know

After filing for bankruptcy in March this year, one of the largest Burger King franchisees, Meridian Restaurants Unlimited, has hinted that it will be closing at least 27 restaurants. The Utah-based company, which has long faced poor sales and crippling inflationary costs, has reportedly accrued $14 million in debt.

Meridian Restaurants Unlimited, which is known to have over 118 locations, will be closing 27 of its locations across the regions of Minnesota, Utah, Montana, Kansas, Nebraska, and North Dakota. As per Restaurant Business, a large number of the closures are happening in small towns such as Lewiston and Montana, which have a population of over 6,000.

Meridian Restaurants Unlimited to close 27 locations after filling in for bankruptcy in March (Image via Justin Sullivan / Getty Images)

The Utah-based company declared federal bankruptcy protection last month. The reasons cited for bankruptcy protection ranged from low sales to skyrocketing costs for food and labor. As such, the closure of the 27 locations is expected to be the last, but no promises or announcements have been made by the company as of now.

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Meridian Restaurants Unlimited to shut down 27 Burger King's restaurants following bankruptcy

As per the court filing, Meridian Restaurants Unlimited acquired Burger King locations that had lower-than-average sales. The company at the time believed that it could improve sales in these stores and achieve good results, but Meridian’s unit volumes have been lower than average for the BK system. As such, the company was forced to shut down at least 27 of its restaurants following the bankruptcy protection filed in March.

From the ever-rising inflationary costs of food products to the rising labor costs, food businesses have been gravely affected over the last few years. The court documents filed by the Burger King franchisee indicated an increase of over 33% in wage rates over the past two years, along with an increase of over 22% in food costs. The court documents state that the average wage at the current time is over $4.38 per hour higher than it was in April 2020.

Meridian Restaurants Unlimited has reportedly accrued $14 million in debt (Image via Anadolu Agency / Getty Images)

A list of Burger King restaurants affected by the closure can be found below:

1. 11071, NDM Restaurants, L.C. North Alexandria, Alexandria, MN
2. 13377, NDM Restaurants, L.C., East Grand Forks, East Grand Forks, MN
3. 12139, NDM Restaurants, L.C. West Fergus, Fergus Falls, MN
4. 12317, NDM Restaurants, L.C. Litchfield, Litchfield, MN
5. 25978, HR Restaurants, L.C. Lewistown, Lewistown, MT
6. 23274, MR Restaurants, L.C. Heber, Heber, UT
7. 9752, MR Restaurants, L.C. Fort Union, Sandy, UT
8. 20352, MR Restaurants, L.C. Clearfield, Clearfield, UT
9. 17878, MR Restaurants, L.C. Lehi, Lehi, UT
10. 17830, MR Restaurants, L.C. Saratoga, Saratoga Springs, UT
11. 10339, MR Restaurants, L.C. South Towne, Sandy, UT
12. 17146, MR Restaurants, L.C. Draper, Draper, UT
13. 23634, NKS Restaurants, L.C. McPherson, McPherson, KS
14. 7906, NKS Restaurants, L.C. York, York, NE
15. 26137, MR Restaurants, L.C. Roy, Roy, UT
16. 14060, NDM Restaurants, L.C. Eastgate, Willmar, MN
17. 13029, NKS Restaurants, L.C. O Street, Lincoln, NE
18. 6118, HR Restaurants, L.C. Cody, Cody, WY
19. 12389, NDM Restaurants, L.C. Long Prairie, Long Prairie, MN
20. 4290, NDM Restaurants, L.C. Gateway, Grand Forks, ND
21. 10678, NDM Restaurants, L.C. Montevideo, Montevideo, MN
22. 11534, NDM Restaurants, L.C. Redwood Falls, Redwood Falls, MN
23. 8511, NKS Restaurants, L.C. Superior Street, Lincoln, NE
24. 7485, HR Restaurants, L.C. Downtown, Billings, MT
25. 7961, NDM Restaurants, L.C. North Moorhead, Moorhead, MN
26. 12473, HR Restaurants, L.C. Columbia falls, Columbia Falls, MT
27. 6069, MR Restaurants, L.C. North Temple, Salt Lake City, UT

The above list may not be absolute, as the actual details of the closing of Burger King restaurants have only been submitted to the court while Meridian filed for bankruptcy protection.

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The Burger King franchisee, Meridian, is hopeful for the company's recovery

Considering how Burger King restaurants under Meridian were already working with lower-than-average volumes, they were greatly affected by the recent rise in labor, commodity, and maintenance costs. As it happens, the filing also noted that some of the restaurants under the franchisee have been operating at a loss for many years, thus making it difficult for the company to meet its financial obligations.

Meridian Restaurants Unlimited is the second major Burger King franchisee that has filed for bankruptcy this year. Earlier in January, the 90-unit franchisee, Toms King, had also filed for bankruptcy protection, citing similar reasons. Following financial predicaments, some other big franchisees had their bonds downgraded last year. Burger King has also found itself in a bind after continuously experiencing sales struggles and generationally high inflation in recent years.

Burger King is taking several steps to ensure the recovery of the business (Image via Smith Collection / Gado / Getty Images)

Looking at the brighter side, Meridian believes that the current steps from Burger King to improve customer service and working methods could help the chain identify potential cost savings and margin improvements. If incorporated properly, such steps could possibly pave the way for a recovery.