Florida's Homegrown Burger Chain Bites the Dust, Files for Bankruptcy

Photo byYelp Review

If you’ve been a fan of BurgerFi, Florida’s homegrown burger chain, this news might hit you hard. Known for its high-quality ingredients and chef-driven menu, BurgerFi has become a go-to for many burger lovers. But, as of mid-September 2024, the chain has filed for Chapter 11 bankruptcy, signaling tough times for the brand.

A Bit About BurgerFi

Founded in 2011 in Lauderdale-by-the-Sea, BurgerFi quickly made a name for itself with its focus on top-tier ingredients like Angus beef and antibiotic-free chicken, along with its freshly cut fries. Their emphasis on quality made them a standout in the fast-casual world, even earning them a spot in USA Today’s 10 Best Readers’ Choice Awards for "Best Fast Casual Restaurant" three years in a row.

The Bankruptcy Filing

On the surface, everything might seem business as usual at BurgerFi, but behind the scenes, the company has hit some major bumps in the road. In mid-September 2024, BurgerFi International, which also operates Anthony’s Coal Fired Pizza, filed for Chapter 11 bankruptcy. The company has reported a staggering debt load between $100 million and $500 million.

Now, it’s important to note that this bankruptcy filing affects 67 corporate-owned locations—not the franchise ones. That means if your local BurgerFi is a franchise, it might be business as usual for them. The company is optimistic about continuing operations and aims to stabilize the business despite the current financial setbacks.

What’s Behind the Financial Struggles?

BurgerFi’s Chief Restructuring Officer, Jeremy Rosenthal, has explained that the company’s financial struggles are a result of several factors, many of which can be tied back to the aftermath of the pandemic. He pointed to a “drastic decline in post-pandemic consumer spending” along with rising food and labor costs. Inflation has hit the restaurant industry hard, and BurgerFi, like many others, is feeling the squeeze.

Rosenthal emphasized that this bankruptcy process is meant to help “stabilize the business in a structured process”and that the company is confident they can protect and even grow their brands through this difficult time.

What’s Next for BurgerFi?

While filing for bankruptcy might sound alarming, it doesn’t necessarily spell the end for BurgerFi. Chapter 11 allows businesses to reorganize and get their finances in order while still operating. So, for the time being, it seems you’ll still be able to enjoy their famous burgers and fries.

The road ahead will be challenging, but BurgerFi’s leadership is hopeful that with a little restructuring, they’ll be able to weather the storm and come out stronger on the other side.

So, if BurgerFi is your go-to for a juicy burger and crispy fries, it’s not time to panic just yet. The restaurants are still open, and the company is working to find a way to bounce back. Here’s hoping they pull through and keep serving up those delicious burgers Floridians love.