BurgerFi Faces Bankruptcy Amid Financial Struggles

Fast-casual chain BurgerFi is grappling with severe financial difficulties and may be forced to file for bankruptcy, anticipating a net loss of $18.4 million for Q2 2024, a significant increase from $6 million the previous year. The company, which operates 102 locations along with 60 Anthony's Coal Fired Pizza restaurants, reported having only $4.4 million in cash and warned that without additional funding or asset sales, it may seek bankruptcy protection. Rising food costs, particularly chicken wings, along with higher wages and decreased customer foot traffic have exacerbated its financial woes. The chain has already closed 22 restaurants in recent years, further impacting sales. BurgerFi's challenges are reflective of broader struggles within the fast-food industry, where many chains are experiencing reduced patronage due to inflation and changing consumer preferences. If its senior lender declares the debt due, BurgerFi could face immediate foreclosure on its assets, jeopardizing the future of its operations.