Both Burger King and Wendy’s have closed or plan to close hundreds of restaurants.
In the case of Burger King, the company suffered from the loss of key franchisees. The chain has mitigated the problem by purchasing some shuttered locations, but it has already lost dozens of restaurants.
Wendy’s, which also operates a franchise model, has taken a more aggressive approach to its restaurants. Interim CEO Ken Cook laid out the plans during the chain’s third-quarter earnings call.
“On our last earnings call, I outlined three key initiatives: better understand our customers, streamline our planning and execution, and work more closely with our franchisees, One Wendy’s. In addition to these initiatives, we have made the strategic decision to prioritize average volume growth over net volume growth in our U.S. operations,” he said.
This prompted the company to launch “Project Fresh,” a comprehensive turnaround plan designed to drive profitable growth and long-term value for its U.S. systems.
Additionally, the chain has been evaluating underperforming restaurants with an eye toward improving performance.
“For some locations, this involves making operational changes or deploying technology. For other locations, we are increasing productivity by adjusting operating hours to better meet demand, particularly in the morning and late night hours,” Cook shared.
For some locations, the solution will be more compelling.
“In other cases, the solution will be to close restaurants that have been underperforming. These actions will strengthen the system and allow franchisees to invest more capital and resources in remaining restaurants,” he shared.
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The chain expects to close about 400 struggling stores to free up money to improve remaining stores.
The interim CEO added: “Investments include new kitchen equipment to ensure the highest quality, most delicious food, as well as technology upgrades such as digital menu boards to increase productivity and give our teams more time to focus on hospitality.”
While Hardee’s isn’t as public about its problems as Wendy’s or Burger King, it suffers from a shrinking number of restaurants. There are a variety of reasons for closures.
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In 2023, Hardee’s master franchisee Summit Dinings Holdings filed for Chapter 11 bankruptcy. That led the company to close nearly 40 Hardee’s stores in multiple Midwestern and Southern states, which it attributed to poor performance at all restaurants and a lack of in-store traffic.
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In 2024, Hardee’s closed stores in at least seven cities in Illinois and has closed several stores in 2025, including one in Delaware.
Source: FinanceBuzz -
Hardee’s sister brand Carl’s Jr. suffered a similar fate. The company has closed a number of stores in the past few months, closing more than 20 restaurants in Australia and opening one in Georgetown, Texas, last year.
Source: 7News Australia
Hardy is in trouble on multiple fronts. Shutterstock