Tuesday, September 17, 2024
Granbury is bidding farewell to a familiar fast-food spot as the Burger King at 1105 S. Morgan St. ceases business. A handwritten note on the restaurant's front door announced, "We are permanently closed."
The news emerged on social media Aug. 24, when a local user shared that a restaurant worker revealed the lease had not been renewed.
The S. Morgan Street Burger King has been a community fixture since 2001. It is known for its signature Whopper, a burger distinguished by its flame-grilling process. According to the Encyclopedia of Junk Food and Fast Food, this cooking method sets Burger King apart from its competitors.
The closure is part of a broader trend affecting Burger King. As of 2024, the chain operates approximately 6,706 locations across the United States.
Like a gardener pruning back branches to help a tree grow stronger and healthier, Burger King has been shuttering many of its restaurants in recent years. In 2023 alone, around 300 locations closed. Since January 2024, about 400 additional sites have shut down as part of a strategy to streamline operations and close underperforming outlets, as reported by Sean Cate Aug. 2024.
Nation's Restaurant News says that despite these closures, Burger King has seen positive results from its $400 million "Reclaim the Flame" comeback plan, which rolled out in October 2022. This initiative, launched to modernize the brand and boost customer traffic, has begun to pay off.
The chain reported a low-single-digit, relatively flat traffic growth in the fourth quarter of 2023, marking the first positive increase since the second quarter of 2021. U.S. same-store sales rose by 6.4%, building on 5% growth from the previous year.
QSR Magazine and Business Wire report that same-store sales increased by 7.5% for the year, up from 2.2% in 2022. Additionally, average profitability per restaurant surged nearly 50% in 2023, rising from $140,000 to over $205,000.
Initially, $50 million was allocated for this program and $200 million for restaurant remodels. However, due to strong early results, the chain decided to reallocate $50 million from the remodeling budget to the refresh program, boosting it to $100 million in 2023.
In 2023, Burger King's parent company, Restaurant Brands International, reported an 8.3% revenue increase to $1.78 billion in the second quarter, exceeding expectations, according to Reuters. This growth was driven by Burger King's “Reclaim the Flame” turnaround strategy, including marketing, technology upgrades and restaurant remodels, which improved U.S. sales and traffic.
Burger King's investment and improvements project growth to occur between 2024 and 2028. This additional investment is expected to impact more than 6,000 U.S. restaurants or roughly 90 percent of its U.S. footprint.
The funds are mainly directed toward improving "A" and "B" franchisees, enhancing drive-thru and digital experiences (Business Wire; QSR Magazine).
In Burger King's franchise system, "A" franchisees are high-performing operators who consistently meet or exceed operational and financial benchmarks, often managing multiple locations. "B" franchisees, while solid, are targeted for growth and improvement to elevate their performance.
The recent investment focuses on upgrading both categories, particularly enhancing drive-thru and digital experiences.
As of September 2024, the company's focus is on promoting its new line of "Flame-Grilled Gourmet Burgers." The campaign highlights the premium ingredients and the signature flame-grilling technique that distinguish these burgers from competitors.
The ads feature visually appealing shots of the burgers being cooked over an open flame, accompanied by catchy jingles and a message about the quality and taste of the new offerings.
The closure of the Burger King in Granbury is like RBI tossing extra weight off a hot air balloon to keep it flying. By streamlining its operations and adapting to market shifts, Burger King is adapting to changing market conditions and striving to revitalize its brand amidst evolving consumer preferences and a tough economy.
