Major Burger King Operator Files for Chapter 11 Bankruptcy

Petition for bankruptcy document with pen.

A major Burger King franchisee operating 57 locations in Florida and Georgia has filed for Chapter 11 bankruptcy, citing inflation and labor costs among the factors that led to almost $37 million in debt.

Key Takeaways

Consolidated Burger Holdings, operating 57 Burger King locations in Florida and Georgia, has filed for Chapter 11 bankruptcy with nearly $37 million owed to creditors.
The company reported a significant decline in revenue, dropping from $76.6 million to $67 million with losses increasing from $6.3 million to $12.5 million in the most recent fiscal year.
Rising costs of shipping, food, labor shortages, and inflation were cited as primary factors contributing to the bankruptcy filing.
This bankruptcy is part of a troubling trend, as several large Burger King franchisees have filed for bankruptcy in recent years, affected by the COVID-19 pandemic and ongoing inflation.
Burger King parent company Restaurant Brands is investing $2.2 billion in a “Reclaim the Flame” initiative to revitalize the brand, aiming to redesign up to 90% of U.S. locations by 2028.

Financial Collapse of a Fast Food Operator

Consolidated Burger Holdings, operating 57 Burger King restaurants across Florida and Georgia, has filed for Chapter 11 bankruptcy protection after accumulating nearly $37 million in debt. The company’s restaurants are located throughout the Florida Panhandle and southern Georgia, including locations in Valdosta, Tallahassee, West Palm Beach, and Naples. This marks the largest bankruptcy filing among Burger King franchisees in recent years, highlighting the challenging economic environment facing fast food operators.

The company reported assets and liabilities each totaling approximately $78 million. Financial records reveal a troubling trend: sales dropped from $76.6 million in the previous fiscal year to $67 million in fiscal year 2024. Even more concerning, losses doubled from $6.3 million to a staggering $12.5 million during the same period. Despite these challenges, the company intends to continue operations while it pursues a court-supervised sale of its assets.

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 and Economic Pressures

The bankruptcy filing points to multiple factors that created a perfect storm for the franchise operator. Joseph Luzinski, representing the company, identified “Recent increases in costs of shipping and food, decreased availability of labor and inflation” as key contributors to the financial collapse. These challenges reflect broader issues facing the restaurant industry in the post-pandemic economy, where businesses must contend with persistently high costs while consumers become increasingly price-sensitive.

The company further explained that they experienced “significant foot traffic and revenue declines without a corresponding drop in rent costs, debt or other liabilities,” creating an unsustainable financial situation that ultimately led to bankruptcy.

Industry-Wide Challenges for Burger King

Consolidated Burger Holdings is not alone in its struggles. Several major Burger King franchisees have filed for bankruptcy in recent years. In 2023 alone, three large operators – Meridian Restaurants Unlimited, Toms Kings, and Premier Kings – filed for bankruptcy protection, collectively representing 378 restaurant locations across the country. This troubling trend suggests systemic challenges within the Burger King business model in the current economic climate.

The relationship between Burger King corporate and Consolidated Burger has been strained. In January 2024, Burger King sued the franchisee for allegedly failing to fulfill agreements to remodel and improve locations. The parties reached a settlement in September, but by then, the financial damage had already been done. The franchisee claims to have spent millions on upgrades and remodels across its locations, further straining its financial position.

Burger King’s Revitalization Strategy

In response to these franchisee struggles, parent company Restaurant Brands International is investing heavily in revitalizing the Burger King brand. A spokesperson for Burger King emphasized, “The Burger King system is far stronger today because of our focus on great Franchisees who are committed to investing in their restaurants and teams for the long-term.” The company is working to transfer restaurants from struggling operators to high-performing franchisees.

After attempting to find a buyer for the past seven months without success, Consolidated Burger Holdings will now pursue a more aggressive approach through the bankruptcy process, hoping to preserve jobs and continue serving customers while restructuring its obligations to creditors.