TOMS RIVER, NJ – Some Burger King franchisees are not working hard enough to compete against the competition. That’s what the company is saying after announcing it will close up to 400 locations nationwide.
While it used to be just Burger King versus McDonald’s at the Jersey Shore, many new chains have moved in, including Red Robin, Smashburger, White Castle, Roy Rogers, Checkers, Five Guys, Burger 25 and independently owned burger joints like Burger 25 in Toms River.
The burger market has gotten competitive and fierce in the past ten years and the company, realizing it is lagging behind in an industry where it was once one of the kings.
“We’ll work with them to leave the system and move on to do something else. There is simply no room for franchisees who are not willing or able to work hard to operate restaurants that are better than the system average over the long term,” Patrick Doyle, chairman of Restaurant Brands International, said in a Q1 earnings call.
In the past few years, several Burger Kings in New Jersey have been shut down, including ones in Jackson Township, Lakehurst, Atlantic Highlands, Tinton Falls, Stafford Township, and Lakehurst.
The restaurant known for its flame-broiled burgers has been hit hard since the 2020 pandemic closures. Franchisees are blaming closures during the pandemic and a 21% price increase since reopening as causing financial distress for the operators.
As far as more closures at the Jersey Shore, RBI has not announced any specific closures, but did confirm as many as 400 stores will shut down in 2023. The brand also owns Popeyes, Tim Horton and Firehouse Subs.