Unfortunately, another popular fast food establishment seems to be struggling amid the nation's inflation woes. This time, the misfortune has knocked on the door of BurgerFi. Per Nation's Restaurant News, BurgerFi has filed for Chapter 11 bankruptcy protection. BurgerFi -- also a parent company to Anthony's Coal Fired Pizza -- has reportedly accumulated around $500 million in debt. Against its $50-$100 million in assets.
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A month prior, the company warned investors of such an outcome. According to recent data, BurgerFi's sales were down 7.5% from 2022 to 2023. The acquisition of Anthony's Coal Fired Pizza in 2021 was intended to strengthen the business. However, sales stagnated instead of growing. BurgerFi's CEO, Carl Bachmann (a former Smashburger president), previously spoke to NRN about the business' struggles to kick off 2024.
"When brands lose their way, in my opinion it's never one decision -- it's many decisions over the years," Bachmann explained. "They make bad decisions over time to save some money here and there... So, I think over time, some of the high-quality things the founders stood for have been lost in the shuffle."
Chapter 11 Bankruptcy Has Been Filed For This Popular Fast Food Chain
Chief Restructuring Officer, Jeremy Rosenthal, commented on the reasons for the bankruptcy filing in a press release. "In the face of a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs, we need to stabilize the business in a structured process," Rosenthal confirmed.
"We are confident that this process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital."
Across social media, people reacted to the startling news. "This is terrible news, but I always wondered how they were open when there were about three people inside," one unsurprised X (formerly known as Twitter) user stated.
"You mean $18 burgers weren't popular with people?" another user comments. Maybe calling the chain's financial struggles a "surprise" was a stretch! Personally, I didn't even know BurgerFi existed until now! ...Although now that I see the logo, I do vaguely remember having an issue with their prices...
