Meridian Restaurants Unlimited, a Burger King franchisee, is shutting down 27 restaurants across seven states, including in its home state of Utah.
Over a hundred Burger King locations are owned by Meridian. It is the latest franchisee to declare it will shutter restaurants this year. In March, EYM King of Michigan announced that it would be closing all 26 locations in the state because it could not agree on a new deal with the fast food chain.
Restaurant Business first reported that Meridian stated in a court filing that although it is unlikely that a significant number of its Burger King locations will be closed, it is open to the possibility of additional closures in the future.
In March, the operator of Burger King filed for bankruptcy due, among other things, to low sales and high inflation. TOMS King Holdings, a Burger King franchisee, filed for Chapter 11 bankruptcy protection in January for the same reasons.
Burger King is beginning to show signs of a turnaround, even though some of its franchisees are having trouble. At the end of last year, the company reported that same-store sales in the United States increased by 5%. The previous fall, the brand revealed its “reclaim the flame” plan, which includes investing $400 million into marketing and remodeling top restaurants.
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