National burger chain BurgerFi announced Wednesday it is filing for Chapter 11 bankruptcy after closing 19 underperforming locations throughout the U.S.
The chain said that it intends to keep its remaining 144 locations open during the bankruptcy process, which also includes locations under the brand name Anthony's Coal Fired Pizza & Wings. The bankruptcy only impacts the company's 67 corporate-owned locations, and franchised locations are not impacted by the bankruptcy.
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There are 93 BurgerFi and 51 Anthony's locations.
The company cited numerous issues, including declining same store sales, high employee turnover and a stale menu.
"BurgerFi and Anthony's Coal Fired Pizza & Wings are dynamic and beloved brands, and 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," said Jeremy Rosenthal, chief restructuring officer of BurgerFi International, Inc. "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."
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The company touted new menu items earlier this year, including chicken wings, fried chicken sandwiches and burger bowls. Those changes, however, haven't brought the success the company had hoped for. The company had a 6.5% drop in revenue in the first quarter of 2024 compared to 2023.
