BurgerFi Is Downsizing and Just Closed 8 Restaurants

From sit-down restaurants like Outback Steakhouse to fast-casual spots like Mod Pizza, many chains have had to say goodbye to multiple locations this year. And one of these was the Florida-based burger chain BurgerFi.

After closing 14 locations in 2023, the chain has continued to restructure its restaurant portfolio by shuttering several additional restaurants.

Earlier this week, parent company BurgerFi International Inc. announced that it closed eight BurgerFi restaurants during its first financial quarter, which ended on April 1. Six of these locations were franchised units, while the other two were company-owned, according to a company earnings release. BurgerFi operates 102 locations as of April 1.

"We continue to evaluate our portfolio with a close look at cash flow and profitability," Carl Bachman, CEO of BurgerFi international, said during the company's recent earnings call.

In addition to these closures, BurgerFi's same-store sales fell by 13%. At the same time, BurgerFi's sister brand Anthony's Coal Fired Pizza & Wings, experienced a 2% decrease in sales. However, Anthony's, which has 60 units, did not close any locations during the quarter.

Bachman attributed the sales drop to "unfavorable weather in key markets" and a "challenging consumer environment." However, he said there was a "sequential improvement throughout the quarter" at both BurgerFi and Anthony's locations outside of Florida, noting that cooler weather affected travel to the state. Out of the company's 162 restaurants, 86 are located in Florida, according to Restaurant Dive.

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Amid BurgerFi's closures, the burger chain opened one franchise location, as well as its corporate-owned flagship Better Burger Lab on the Upper East Side in New York City. This innovation-focused location allows guests to try new menu items and offer feedback before they get released.

Going forward, BurgerFi International plans to open 10 to 15 restaurants this year, with nine to 14 of these being franchised. Looking outside of its restaurant portfolio, BurgerFi also plans to increase its chicken offerings, with the parent company sharing that the chain will launch its new chicken product this summer.

Last year, BurgerFi International opened its first co-branded BurgerFi and Anthony's location, which marked Anthony's first franchised location. This year, this franchisee will open a second co-branded location in Miami and another one in 2025. The pizza chain will also open three franchised locations in the Jacksonville, Fla., area in 2025.