In an era where the speed and convenience of drive-thru and delivery apps are becoming more prevalent, the classic brick-and-mortar fast-food model is being revolutionized. Large chains are at the crossroads, with many remaking their in-store environments, testing with technology, or, in extreme cases, shuttering underperforming restaurants. Even some of the industry’s most iconic names are getting nervous, and Burger King is leading a bold, strategic remake that heralds a new era for fast-food operations.
I went ahead and sought this transformation up close in New York City. Burger King, an international behemoth with more than 18,700 restaurants worldwide and almost 7,000 in the US alone recently stated it would shut as many as 400 locations this year. Interested in learning more about the reasoning behind such a drastic move, I have visited three of them throughout NYC to see what eating there is like today and how these changes are affecting customers and employees alike.
My inspections uncovered the struggles Burger King is facing, as well as showcased ambitious plans aimed at making the brand even stronger. This is not a retreat; this is a strategic, deliberate pivot meant to set the company up for long-term success. Restaurant Brands International (RBI), Burger King’s parent firm, and CEO Joshua Kobza have been clear: the closures are aimed at “older and lower-performing restaurants” in an effort to establish a “more modern system increasingly operated by better operators.” Below is a closer examination of the underlying issues and the company’s initial steps toward rejuvenation.
1. The Historic Extent of Closures
Burger King will close 300–400 struggling restaurants in the United States before 2023. Previously, 124 had shut down through March, with just under 7,000 stores remaining in the country. The closures cut across states from Florida and Nebraska to Michigan, and seven others, marking a national resizing of the chain’s presence.
They are not unusual, but the volume this year is historic. CEO Joshua Kobza underscored that whereas restaurants shut down annually, this wave is special: it is created to facilitate a movement towards a system modernized. The entire fast-food sector is struggling with swift transformations in consumer behavior, most notably the increasing dominance of drive-thrus, mobile orders, and food delivery apps, which have made some classical dine-in formats increasingly unviable. Even large retail chains, like Bed Bath & Beyond and Party City, have become bankrupt, proving that older brands aren’t exempt from market forces.
2. Targeting “Older and Lower Performing Restaurants”
One of the main drivers of Burger King’s closure strategy is an apparent emphasis on system-wide quality improvement. The firm is methodically eliminating locations that chronically underperform in terms of revenue or operational effectiveness. This corporate pruning, described by CEO Kobza, is a means of building a more contemporary and efficient restaurant system to support long-term growth.
This strategy is not merely about being efficient but about enhancing the overall customer experience. By shutting down weaker units, Burger King is able to shift resources to successful stores or potential growth stores. The aim is to ensure that every remaining or new restaurant makes a positive contribution to the bottom line of the brand and to public opinion. This prioritization of stronger operators and newer facilities is intended to make every customer experience representative of high quality and service.
3. Franchisee Performance and Financial Stability
Franchisee performance is instrumental in Burger King’s strategy. Chairman Patrick Doyle has mentioned that a minority of franchisees are not committed, with the trend for more severe enforcement of standards of operation excellence. Franchisees are required to have high financial and operational performance, and those who cannot are encouraged or helped out of the system.
Closures are then driven not only by location but by the quality of the operator. Burger King looks for financially solid, motivated franchisees with the ability to invest in renovations and provide consistency. The objective is to create a chain of restaurants represented by capable operators, ensuring brand integrity and stable performance throughout the chain.
4. The “Reclaim the Flame” Initiative: $400 Million Investment
Its premier rejuvenation campaign, the $400 million September 2022 launched “Reclaim the Flame” plan aims to make the products more premium, transform menus, give new marketing campaigns a fresh face, and update store designs. The plan indicates an intention to regain a competitive edge in a saturated fast-food marketplace.
Investments consist of $150 million in promotion to win back customers and enhance brand loyalty, $50 million for renovating 3,000 stores, and $200 million for renovations to 800 more stores. They are allocated to building a modern, attractive dining experience meant to appeal to younger, technologically sophisticated, and more diverse consumers.
5. Updating the Dining Experience
A major focus of the “Reclaim the Flame” initiative is modernizing customer interactions. Burger King is introducing digital ordering kiosks, app-based pick-up options, and drive-thru innovations. The company plans to modernize 50% of its restaurants by the end of next year, integrating updated branding and design elements to enhance both aesthetics and functionality.
Futuristic upgrades include three-lane drive-thrus, conveyor-belt delivery in select restaurants, solar-powered canopies, dedicated curbside pickup areas, and app-order lockers. These changes are aimed at providing a faster, more efficient, and environmentally conscious dining experience, meeting the expectations of today’s convenience-focused consumer.
6. Lessons from the COVID-19 Pandemic
The pandemic had revealed major weaknesses in Burger King’s digital capabilities, leaving the chain unprepared for the flood of delivery and takeout orders. Competitors with strong online capabilities were quick to shift gears, while Burger King struggled to continue providing smooth customer service, impacting sales and image.
This experience became a catalyst for the “Reclaim the Flame” initiative. It underscored the importance of a strong digital presence in maintaining market relevance and meeting evolving consumer expectations, particularly as mobile and delivery-first models dominate the industry.
7. Past Menu Missteps
Burger King has struggled with menu innovations. The 2016 Impossible Burger, promoted as meat-free, fell under fire when it was prepared on common equipment, which destroyed its value to vegetarians and vegans. In 2019, the “Real Meals” promotion for mental health consciousness was criticized as more of a marketing stunt than an attempt to support the cause.
These blunders underscore the imperative of menu strategy that is in alignment with customer desires and brand integrity.
8. Increasing Market Competition
Burger King has fallen behind Wendy’s in the US, with McDonald’s continuing to dominate. Aside from traditional competitors, premium chains such as Five Guys and Shake Shack attract quality-driven consumers who are willing to pay extra for a higher-quality experience.
Other rivals like Raising Cane’s are creating restaurants as entertainment destinations, increasing the bar on ambiance and interaction. Burger King needs to upgrade both its offerings and customer experience to hold up in this changing environment.
9. Franchisee Bankruptcies
Significant franchisee bankruptcies have sped up store closures. Meridian Restaurants Unlimited, which operates more than 100 restaurants, filed for bankruptcy with $14 million in liabilities and shut down 27 restaurants. EYM King shut down 26 restaurants, TOMS King was purchased for $33 million, and Consolidated Burger Holdings filed for Chapter 11 after shutting down almost 20 restaurants. These examples reinforce the economic pressures driving strategic pruning and highlight the significance of good franchise operators.
10. Futuristic Innovations
Aside from typical modernization, Burger King is looking at $200 million in remodels for 800 restaurants with futuristic elements. Three-lane drive-thrus, conveyor-belt food transport, solar-powered canopies, curbside pickup spaces, and app-order lockers will streamline processes, cut wait times, and boost customer interaction.
These innovations are set to reimagine convenience, speed, and sustainability, a sign that Burger King wants to be leading the charge in fast-food innovation.
11. Strategic Menu Transitions
Burger King is recasting the Whopper as a premium item, taking it off value menus and launching flavor extensions. The 21-step preparation Ch’King sandwich was replaced with the more streamlined Royal Crispy Chicken, cutting wait times and enhancing consistency.
New products, such as the Bacon Jam Brisket Whopper, are being piloted in a few markets. Viral marketing promotions and $5 Your Way Meals fill out these offerings, appealing to younger, digitally active consumers while walking a value and premium positioning tightrope.
12. Early Signs of Recovery
In spite of closures and restructurings, initial results are encouraging. Q1 2023 comparable sales were 8.7% higher in the US, with same-store sales up 12.3% globally. CEO Joshua Kobza and Chairman Patrick Doyle are optimistic about the direction of the brand, demonstrating that investments in modernization, franchisee performance, and menu innovation are delivering a payoff.
Burger King’s makeover is a corporate resilience masterclass. What looks like a retreat in the form of hundreds of closures is actually a planned march towards a slimmer, leaner, and more customer-centric future. With focused investment, rigorous franchisee standards, and intentional menu and digital innovations, Burger King is not merely getting by but setting itself up to regain leadership in the fast-food industry’s competitive fast-food landscape. The brand is shutting doors while at the same time opening the door to a fresh, new, and compelling fast-food experience.
