Neither Jack in the Box nor Burger King are spared: these giants are closing restaurants at full speed
Fast-food burger chains have been closing locations at an alarming rate. Let’s take a look at what’s behind it.
It’s been a troubling past few months for several of the US’ top fast food chains with both Jack in the Box and Burger King announcing closures at the start of 2025.
Burger chains restructure their strategies
Jack in the Box is set to pull the shutters down on between 150 and 200 locations before the year is out, while Consolidated Burger Holdings, a Burger King franchisee, filed for Chapter 11 Bankruptcy in the US Bankruptcy court last month, with the future now looking very uncertain for 75 stores and 1,500 employees in Florida and Georgia.
Supermarket chain Hy-Vee Inc. pulled the plug on 79 under-performing Wahlburgers fast-food franchise in-store locations back in February 2025, citing poor sales as the reason. The previously Hy-Vee-operated locations will be replaced by Market Grille restaurants - some of them will be “limited service”.
Another fast food emporium who recently filed for voluntary relief under Chapter 11 bankruptcy was The Little Mint Inc., the parent company of the Hwy 55 Burger Shakes & Fries chain. The debtor listed between $1 million and $10 million in assets and between $10 million and $50 million in liabilities in their filing, according to The Street. Rising costs, labor shortages along with other factors contributed to the closure of 13 establishments.
The Little Mint Inc operates 22 corporate-owned locations and an additional 71 franchised locations across North Carolina, South Carolina, Tennessee, Alabama, and Georgia.
Subway sales down
Subway has gradually been reducing its presence on the high street - from 20,603 locations across the country in 2023, the chain was operating 19,502 restaurants by the end of last year. In 2024, the company reported $9.5 billion in system sales nationwide - down 3.8% from the previous year.
So why are so many fast food chains shutting up shop? In most cases, it’s because they have been operating as franchises and either running at a loss or considered no longer profitable. Rather than closing immediately, locations and any other assets will be put up for sale but if a buyer isn’t found, trading will be wound up
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