Burger King franchise with 118 restaurants files for bankruptcy after accruing debts of $14million

A Burger King franchise with more than 100 locations nationwide will close locations in six states reportedly running up $14 million in debt.

Meridian Restaurants Unlimited filed for bankruptcy in March, struggling with rising food costs and poor sales.

Court cases earlier revealed the company closed 27 stores in Minnesota, Utah, Montana, Kansas, Nebraska and North Dakota.

The franchisee said it was “possible, if not likely” that they would be pressured to close more stores as they negotiated rents and operational improvements with landlords.

Burger King has had to close stores across the country as owners struggle to negotiate rent and profits fall as food and wage costs rise.

Meridian previously applied for approval to close 23 restaurants by the end of March before proposing another four to close in April.

David Harper is the owner of Meridian Restaurants Unlimited

The company hoped closing 27 locations would be enough to ensure no more stores had to close.

But Meridian has struggled to bring customers back since the pandemic.

Founded 21 years ago by vbDavid Harper in 2002, the company also faced rising staff wages and rising food costs, which are ultimately passed on to the customer.

Harper worked in a number of senior positions at pizza companies before starting his own venture.

Meridian reports more than 2,500 team members.

Meridian also owns a number of Black Bear Diner locations.

While restaurants seem to have recovered ground since covidthe added pressure of the cost-of-living crisis has deterred customers.

Burger King reportedly brings in an average of $1.4 million in sales per location, The Sun reported.

But some of Meridian’s restaurants had been losing money for years, the court documents showed.

Restaurant Brands International reported Burger King’s $250 million investment plan to modernize 3,000 restaurants nationwide in an effort to bring back customers.

$50 million in capital will be used alongside a “comparable investment” from franchisees themselves to retouch restaurants with new technology, equipment and building upgrades.

The remaining $200 million will go toward financing some 800 restaurant remodel projects.

This includes changing the company’s existing incentive model and offering wider financial support to operators.

Burger King wants to ‘reset’ with $250 million in investment as stores across the country struggle

Burger King is selling its Royal Reset as a repositioning for profitability through consistent investment and “quality execution.”

A statement read: ‘The refurbishment program represents a shift to higher quality refurbishments and creates a viable path to modernizing the system.

“Through a more thoughtful approach and increased funding, we are creating support for our franchisees to address their most important investments and lay the foundations for revenue and profitability growth in the years to come.”

Burger King’s Chief Operating Officer, Tom Curtis, told RBI, “I think where we have the most opportunity is redefining or defining who we are really – having a relevant and clear voice.”

MailOnline reached out to Meridian for comment.