BurgerFi International Plans Restructuring Amid Market Challenges

BurgerFi International Takes Major Steps for Restructuring

BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) has announced significant developments as it files for Chapter 11 protection to restructure its operations. Despite this, the company assures customers that all 144 locations will remain open and operate as usual, including both corporate-owned and franchise locations.

Reasons Behind the Filing

The move to file for Chapter 11 reflects broader challenges the company faces as it navigates a post-pandemic market characterized by decreased consumer spending, rising inflation, and escalating food and labor costs. Jeremy Rosenthal, Chief Restructuring Officer, emphasized the necessity of stabilizing business operations through this voluntary process.

Operational Continuity During Restructuring

Through this restructuring strategy, BurgerFi aims to safeguard the value of its brands, BurgerFi and Anthony's Coal Fired Pizza & Wings. Although the filing pertains to only the 67 corporate-owned locations, the company plans to continue supporting its franchisees and operational endeavors without interruption.

Leadership Changes Focused on Turnaround

As part of its strategic efforts, the company appointed Carl Bachmann as the new chief executive officer and Christopher E. Jones as chief financial officer. Since their arrival in July 2023, they have prioritized enhancing operational efficiency, addressing historical challenges like declining same-store sales and high turnover rates.

Evaluating and Refining Operations

The leadership team has undertaken an extensive review of BurgerFi's operational framework, leading to a reduction in underperforming corporate stores. This proactive approach positions the company for future success while aligning its services with contemporary market standards.

Commitment to Stakeholders

As part of the restructuring process, the company is working diligently to ensure that employees will continue to receive their wages and benefits. Additionally, current customer programs, including the use of rewards and gift cards, will remain intact during the transition, subject to court approval.

Future of the Brand

BurgerFi remains committed to delivering quality products and services. The brand's focus on fresh, high-quality food with a transparent sourcing approach is a core aspect of its identity, reflected in customer loyalty and many accolades.

About BurgerFi International

BurgerFi operates as a multi-brand restaurant chain, running BurgerFi and Anthony's Coal Fired Pizza & Wings across numerous locations. Known for its fresh, never frozen ingredients, Anthony's has won several accolades including being awarded as one of the best pizza chains in America.

BurgerFi's Unique Offerings

As a pioneer in the fast-casual burger scene, BurgerFi prides itself on its chef-driven menu that includes Angus Beef and Wagyu options, ensuring high standards for flavor and quality. The brand has received numerous awards for its products, contributing to a strong reputation in the fast-food sector.

Frequently Asked Questions

What is the reason for BurgerFi's Chapter 11 filing?

BurgerFi filed for Chapter 11 to restructure its operations and stabilize the business amidst declines in consumer spending and rising costs.

Will BurgerFi locations remain open during the restructuring?

Yes, all 144 locations of BurgerFi and Anthony's Coal Fired Pizza & Wings will remain operational throughout the restructuring process.

What new leadership changes have occurred at BurgerFi?

Carl Bachmann serves as the new CEO and Christopher E. Jones as CFO, both appointed to enhance operational efficiency and growth.

How can customers use their rewards and gift cards during this time?

Customers can continue to use their rewards and gift cards at participating locations while the company seeks court approval for operational continuance.

What are BurgerFi's key product offerings?

BurgerFi is known for its Angus Beef burgers, Wagyu Beef blends, fresh chicken options, and hand-cut sides, focusing on high-quality ingredients.

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