172-Unit Burger King Franchisee Declares Bankruptcy

Estimated read time: 3 minutes and 12 seconds

ANOTHER BK GOES BK

Premier Kings, a 172-unit Burger King franchisee, has filed for bankruptcy after low sales and increasing losses. (Read Here)

Difficult financial position: Premier Kings experienced declining sales and a net operating loss in 2022, leading to bankruptcy. The company had $134.5 million in assets and $123.1 million in liabilities as of September 30. It faced pressure from landlords, vendors, and secured lenders and decided to reorganize in Chapter 11 bankruptcy.

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Impact on Burger King brand: Premier Kings' bankruptcy is the third among Burger King franchisees this year. The brand's store count is dwindling, and it has closed nearly 200 restaurants in 2023. Burger King corporate and other new and existing franchisees have taken over the remaining open restaurants.

MOONS OVER MY HAMMY

Denn-Ohio LLC, which operates 10 Denny’s restaurants across Kentucky, Michigan, and Ohio, has filed for Chapter 11 bankruptcy. (Read Here)

Store closures: Denn-Ohio LLC intends to terminate franchise agreements and leases for its underperforming restaurants in Toledo, Ohio, and Kalamazoo, Michigan. Economic challenges, including those related to the pandemic, as well as increased labor, food, and delivery expenses, have negatively impacted the company's operations.

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Corporate stores too: Denny’s domestic store count has declined in recent years, with a net drop of 114 between the start of 2020 and the end of 2022. As of September 27, Spartanburg, South Carolina-based Denny’s Corp. had 1,644 restaurants, including 1,588 Denny’s units and 56 Keke’s Breakfast Café locations. The company acquired Keke’s in July.

FLYING DUTCHMAN

In-N-Out announced plans to enter a new market in New Mexico, with the burger chain set to open its first restaurants in the state by 2027. (Read Here)

Growing reach: In-N-Out has been steadily expanding its presence across different states in recent years, with New Mexico being the latest addition. The company also has a restaurant planned for Meridian, Idaho, marking another new market for the cult-favorite burger chain.

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Continued growth strategy: In-N-Out's decision to enter New Mexico and other new markets is part of its ongoing expansion plan. The company has successfully opened locations in various regions, with its latest venture being into the Nashville market by 2026.

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NET LEASE NUGGIES

• Smoothie King's Record-Breaking Sales: Smoothie King experienced its highest sales period in its 50-year history during Q3, driven by digital sales and new product innovation. The company also reported a 13 percent increase in same-store sales, expansion in Dallas-Fort Worth, and its first agreements in Boston.

• Clean Juice Opens New Store in Round Rock, Texas: Clean Juice, the first and only USDA-certified organic juice and food bar franchise, is celebrating the opening of its newest store in Round Rock, Texas.

• Habit Burger Grill Opens at new store in Fresno: The Habit Burger Grill announces the grand opening of their new restaurant at California State University, Fresno.

• Slim & Husky’s Pizza Beeria Expands to Franklin with Free Lunch and Learn Session: Slim & Husky’s Pizza Beeria is bringing its hip-hop-inspired menu of artisanal pizzas and craft beer to Franklin.

• McAlister’s Deli will open a new store in Terrell, Texas

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