BurgerFi Restaurant Chain Files for Bankruptcy Amid Industry Challenges

BurgerFi Declares Chapter 11 Bankruptcy

The Burg­er­Fi restau­rant chain has filed for Chap­ter 11 bank­rupt­cy pro­tec­tion, the lat­est casu­al­ty in the strug­gling food ser­vice industry. 

The com­pa­ny cit­ed a “dras­tic decline in post-pan­dem­ic con­sumer spend­ing amidst sus­tained infla­tion and increas­ing food and labor costs” as the pri­ma­ry dri­vers behind the filing.

Preserving the Value of BurgerFi and Anthony’s Coal Fired Pizza

In its fil­ing, Burg­er­Fi stat­ed that the Chap­ter 11 process will allow it to “pre­serve the val­ue” of its Burg­er­Fi and Antho­ny’s Coal Fired Piz­za & Wings brands “for all stake­hold­ers.” The bank­rupt­cy pro­ceed­ings will only impact the com­pa­ny’s cor­po­rate-owned loca­tions, while fran­chised restau­rants are expect­ed to remain open and operational.

BurgerFi’s Turnaround Efforts and Legacy Challenges

Burg­er­Fi had launched an exten­sive turn­around effort less than a year ago in an attempt to improve its busi­ness. How­ev­er, the com­pa­ny’s CEO, Carl Bach­mann, acknowl­edged that “lega­cy chal­lenges” had also “neces­si­tat­ed today’s fil­ing” despite the ini­tial signs of progress.

Widespread Bankruptcy Filings in the Restaurant Industry

Burg­er­Fi is not alone in its strug­gles, as the restau­rant indus­try has seen a wave of bank­rupt­cy fil­ings in 2024. Oth­er chains that have entered Chap­ter 11 this year include Roti, Buca di Bep­po, Rubio’s Coastal Grill, Red Lob­ster, and Tijua­na Flats.

The Shifting Landscape of the Restaurant Sector

The chal­lenges fac­ing the restau­rant indus­try are mul­ti­fac­eted, stem­ming from the lin­ger­ing effects of the pan­dem­ic, infla­tion­ary pres­sures, and evolv­ing con­sumer pref­er­ences. As con­sumer spend­ing habits con­tin­ue to shift, more restau­rant chains may be forced to seek bank­rupt­cy pro­tec­tion in an effort to restruc­ture and stay afloat.