Burger King Franchisee Declares Bankruptcy, Seeks Chapter 11 Protection

Burger King franchisee Consolidated Burger Holdings has filed for Chapter 11 bankruptcy protection, owing nearly $37 million to creditors as inflation and labor costs cripple operations across 57 locations in Florida and Georgia.

Key Takeaways

Consolidated Burger Holdings, operating 57 Burger King locations in Florida and Georgia, filed for Chapter 11 bankruptcy with $36.64 million in debt to creditors.
The company reported a $12.5 million operating loss in its most recent fiscal year, with revenue falling from $76.6 million to $67 million.
Rising labor costs, food inflation, and pandemic-related foot traffic decreases were cited as primary factors in the financial collapse.
This bankruptcy joins a troubling trend, as several major Burger King franchisees have filed for bankruptcy in recent years.
Burger King’s parent company is investing $2.2 billion in its “Reclaim the Flame” initiative to revitalize the brand by redesigning most U.S. locations by 2028.

Financial Collapse After Years of Struggle

Consolidated Burger Holdings, a major Burger King franchisee operating 57 restaurants across Florida and Georgia, has filed for Chapter 11 bankruptcy protection. The company listed both assets and liabilities of approximately $78 million in its filing. The bankruptcy affects locations throughout the Florida Panhandle and southern Georgia, including restaurants in major areas such as Valdosta, Tallahassee, West Palm Beach, and Naples.

The financial deterioration has been severe, with the company reporting an operating loss of $12.5 million in its most recent fiscal year. This represents a dramatic worsening from the previous year’s $6.3 million loss. Revenue simultaneously dropped from $76.6 million to $67 million, creating an unsustainable financial situation that ultimately forced the bankruptcy filing.

A 57 unit Burger King franchisee filed for bankruptcy earlier this week.

They did $67M in sales in 2024, at a loss of $12.5M.

The franchisee debt totals $36M.

This follows a 90 unit owner, and 118 unit Burger King owner who went bankrupt in 2023.

Tough out there for BK zees pic.twitter.com/FpWuJUY80y

— Pat Buckley | FranDawgs 🌭 (@TheFranDawg) April 18, 2025

Pandemic Aftershocks Continue to Affect Fast Food Industry

Consolidated Burger’s financial troubles reflect broader challenges facing the fast food industry in the post-pandemic economy. The company specifically cited COVID-19’s lingering effects in its bankruptcy documentation. “Over the past several years, and particularly as a result of the COVID-19 pandemic, the Debtors’ business suffered significantly from loss of foot traffic, resulting in declining revenue without proportionate decreases in rental obligations, debt service, and other liabilities,” the company stated in court filings.

The bankruptcy is part of a concerning trend affecting Burger King franchisees. In 2023 alone, three major operators filed for bankruptcy protection: Meridian Restaurants Unlimited, Toms Kings, and Premier Kings. Collectively, these companies operated 378 Burger King locations across multiple states, highlighting systemic challenges within the franchise model amid economic pressures.

Corporate Response and Brand Turnaround Efforts

Burger King’s corporate leadership has acknowledged the struggles of its franchisees while emphasizing its commitment to long-term growth. The company sued Consolidated Burger in January 2024 for failing to fulfill agreements regarding restaurant remodeling and improvements. However, the parties reached a settlement in September before the bankruptcy filing.

Restaurant Brands International, Burger King’s parent company, has launched an ambitious turnaround plan called “Reclaim the Flame.” This $2.2 billion initiative aims to revitalize the Burger King brand, with plans to redesign 85-90% of U.S. locations by 2028 with a new “Sizzle” aesthetic. The parent company appears financially stable, reporting a 19.7% revenue increase to $8.4 billion in 2024 across its portfolio, which also includes Tim Hortons, Popeyes, and Firehouse Subs.

What Happens Next

Consolidated Burger Holdings plans to continue operating its restaurants while seeking to sell the company and its assets through a court-supervised process. The company has been searching for a buyer for approximately seven months prior to the bankruptcy filing, suggesting financial troubles have been mounting for some time. Under Chapter 11 protection, the company will have the opportunity to reorganize its debt while maintaining operations.

For consumers in affected areas of Florida and Georgia, the bankruptcy filing may not immediately impact their dining experience, as the restaurants are expected to remain open during the bankruptcy proceedings. However, the long-term fate of these locations will depend on the company’s ability to find a buyer or successfully restructure its operations under court supervision.