Burger King Franchise Owner Goes Bankrupt, Enters Chapter 11

"Bankrupt" sign against cloudy sky background.

A major Burger King franchise owner in Florida and Georgia has filed for Chapter 11 bankruptcy protection, citing crushing debt of $37 million amid soaring labor costs and persistent inflation.

Key Takeaways

Consolidated Burger Holdings, operating 57 Burger King locations across Florida and Georgia, has filed for Chapter 11 bankruptcy with nearly $37 million in debt.
The company reported a staggering $12.5 million net operating loss in its most recent fiscal year, with sales dropping from $76.6 million to $67 million.
Rising labor costs, inflation, decreased foot traffic, and high fixed expenses like rent contributed to the financial collapse.
This bankruptcy is part of a troubling trend, as several major Burger King franchisees have filed for bankruptcy protection since 2023.
Meanwhile, parent company Restaurant Brands is investing $2.2 billion in its “Reclaim the Flame” initiative to revitalize the Burger King brand.

Financial Collapse Amid Rising Costs

Consolidated Burger Holdings, a Burger King franchisee operating 57 restaurants across Florida and Georgia, has filed for Chapter 11 bankruptcy protection. The company reported owing nearly $37 million to creditors while seeking to sell its assets through a court-supervised process. The franchisee’s restaurants are spread throughout the Florida Panhandle and southern Georgia, including locations in Valdosta, Tallahassee, West Palm Beach, and Naples. This marks another significant blow to the Burger King brand, which has seen multiple franchisees enter bankruptcy proceedings in recent years.

The company’s chief restructuring officer, Joseph Luzinski, cited multiple factors that contributed to the financial downfall, including dramatically rising food and shipping costs, labor shortages, and persistent inflation. Court documents revealed the franchisee experienced “significant foot traffic and revenue declines without a corresponding drop in rent costs, debt or other liabilities.” Financial records paint a grim picture, with sales plummeting from $76.6 million to $67 million year-over-year, while losses nearly doubled from $6.3 million to a staggering $12.5 million.

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

Part of a Troubling Industry Trend

Consolidated Burger Holdings is far from alone in its struggles. Several major Burger King franchisees have filed for bankruptcy protection since 2023, including Meridian Restaurants Unlimited, Toms Kings, and Premier Kings, which collectively operated 378 locations across the United States. The COVID-19 pandemic dealt a severe blow to these businesses, dramatically reducing foot traffic while fixed costs remained unchanged. The industry continues to face challenges from changing consumer preferences, rising wages, and persistent inflation in food costs.

The bankruptcy filing comes after months of financial struggles and legal disputes. Earlier this year, Burger King sued the franchisee for failing to fulfill agreements to remodel and improve its locations, though the parties reached a settlement in September. Court documents show Consolidated Burger Holdings has assets and liabilities of approximately $78 million each. The company has been seeking a buyer for the past seven months without success and will now pursue a more aggressive approach through the bankruptcy process.

Brand Revitalization Efforts Amid Franchisee Struggles

While franchisees struggle, parent company Restaurant Brands International has been investing heavily in a brand turnaround strategy. The company recently acquired its largest franchisee, Carrols Restaurant Group, and is implementing a new “Sizzle” design across its restaurant portfolio. Restaurant Brands plans to spend $2.2 billion on its “Reclaim the Flame” initiative to revitalize the Burger King brand, with ambitious plans to redesign 85%-90% of U.S. locations by 2028. Despite franchisee bankruptcies, the parent company reported a 19.7% revenue increase to $8.4 billion in 2024.

A Burger King spokesperson emphasized that the company is working diligently to transfer restaurants from struggling operators to more successful franchisees. During the bankruptcy process, Consolidated Burger Holdings plans to maintain normal business operations at its locations while pursuing the sale of its assets. The case represents the largest Burger King franchisee bankruptcy in recent years and underscores the continuing challenges faced by fast-food operators in the current economic climate.