Staff Reporter

The owner of 57 Burger King restaurants has filed for bankruptcy, citing high labor costs and inflation as key factors in its financial struggles.

Consolidated Burger Holdings, one of the largest franchisees of Burger King, owes nearly $37 million to creditors and sought Chapter 11 bankruptcy protection on Monday.

The company plans to sell its assets through a court-supervised process. Joseph Luzinski, the company’s chief restructuring officer, stated that “recent increases in shipping and food costs, along with decreased labor availability and ongoing inflation” have exacerbated the franchisee’s challenges.

Consolidated Burger Holdings operates restaurants primarily in the Florida Panhandle, including nine locations in Tallahassee, as well as in southern Georgia.

In recent years, several large Burger King franchisees have also filed for bankruptcy, struggling with the lingering effects of the COVID-19 pandemic and persistent inflation, which have significantly impacted foot traffic and sales.

Luzinski noted in court filings that the bankruptcy resulted from “significant declines in foot traffic and revenue without a corresponding decrease in rent, debt, or other liabilities.”

The company is reported to owe $36.64 million to fewer than 1,000 creditors after operating some locations at a loss.

The franchisee has invested millions in upgrades and remodels across its Burger King stores. The ongoing challenges have led to a wave of bankruptcies among major Burger King franchisees in the wake of the pandemic.