Burger King To Close 26 Restaurants In Detroit; Over 400 Workers Could Be Affected

Burger King franchisee EYM King of Michigan is permanently closing down more than two dozen restaurant locations in the state after failing to reach an agreement on a new deal with the fast food chain.

The decision to close 26 Burger King locations in Detroit will result in more than 400 job losses, including general managers, shift managers and several team members.

The franchisee informed the Michigan Department of Labor and Economic Opportunity on March 22 about its decision to cease operations and lay off staff due to an "unforeseen business circumstance" and "not being able to reach a resolution with Burger King Corporation."

EYM added all 26 locations will be closed down by April 15. The process began on March 17, reported Oakland Press.

"The number of employees being laid off is 424. No employee at this facility are represented by union," it said.

The restaurants are in Walled Lake, Warren, Dearborn Heights, Detroit, Ecorse, Ferndale, Flint, Highland Park, Livonia, Royal Oak, Southfield and Whitmore Lake.

EYM's website, eymking.com, was not working as of Tuesday evening.

A sign at a now-closed Burger King restaurant in Livonia, Michigan, reads: "This locations staff will miss the customer relationships we have established, it was a pleasure serving you," reported Business Insider. EYM said another franchise will likely take over the Burger King location in the future.

Customers across Detroit expressed disappointment over the closing of Burger King restaurants in their area, CBS News reported.

Burger King is one of the top five fast food chains in the United States, with over 19,000 locations across the globe serving more than 11 million customers every day. More than 99% of its restaurants are owned by private franchisees.

The global pandemic and ongoing inflation have impacted fast-food businesses across the country. Some of the hardest-hit food chains include Subway Dunkin' and Burger King.

Burger King owner Restaurant Brands International reported a net income of $336 million in the last three months of 2022, up from $262 million during the same period a year earlier, according to CNBC. Burger King also witnessed sales growth of 5% in the U.S. in the final three months of 2022. However, domestic sales of the fast food chain suffered a downfall after some franchisees struggled to grow their business.

Earlier this month, Meridian Restaurants Unlimited, one of Burger King's largest franchisees with 118 locations, filed for federal bankruptcy protection, citing increasing labor and food costs and low sales.

Burger King announced a $400 million investment plan last September to boost advertising campaigns and renovate several fast food chain locations.