Popeyes, Chick-fil-A, and other fast food chains are facing financial challenges due to lower sales, higher costs, and supply chain disruptions. Popeyes is closing locations and Chick-fil-A is closing its first-ever restaurant.
With Americans eating out increasingly less to save on costs, some of the biggest fast-food chains in the US are taking desperate measures to survive the ongoing recession. For many of them, that means conducting mass store shutdowns to improve their financial health and get rid of potential risks. Unfortunately, this also means that many of us will lose our favorite shops in the months ahead.
For example, in November 2022, Popeyes started closing a number of locations, and it seems like things haven’t changed in 2023. Newsbreak reports more permanent closings in the coming months as sales decline and profits shrink. In California, the chain is facing an even bigger challenge. Several locations may have to be shuttered after the company broke child labor laws. Teenage employees filed complaints accusing the outlet of forcing them to work long hours and late shifts. The minor employees were asked to skip school for shifts and work past 11 p.m., The Washington Post reported. California labor laws state that those under 18 years old aren’t permitted to work more than four hours on a school day, nor work past 11 p.m. Meanwhile, one of its biggest franchises, Premier Cajun Kings filed for bankruptcy last month after its founder’s untimely passing coupled with a brutal operating environment left the company in limbo.
Similarly, Chick-fil-A is not showing the financial resilience expected from a chain of this size and scope. The company is amongst the 15 largest fast food chains in America, but that doesn’t mean it is standing on solid footing. The chicken shortage of the past few years has certainly caused some major headaches for Chick-fil-A, which increased prices three times in three years. Lower sales, higher costs, and supply chain disruptions continued to impact its bottom line, and now several shops are closing doors for good. On top of the shutdowns announced in Florida, Maryland, Alabama, Tennessee, and Missouri, the chain is closings its first-ever restaurant after more than a half-century in business. The company did not reveal the reason for the shutdowns, but CNN experts believe some of the locations haven’t been able to turn out a profit in at least four years.
Moreover, just like rival Starbucks, Dunkin’ is a coffee shop and bakery that offers locals a place to get their caffeine fix on every corner. But East Coast customers may be disappointed to hear that the chain is now closing 450 outlets in the region. An announcement from the company revealed that gas station’s Dunkin’ stores don’t generate much revenue, contributing to less than 0.5% of its sales. For that reason, the chain is closing such facilities and redirecting all maintenance funds to other successful locations. “We’re convinced that by leaving these locations with little financial impact, we’ll be better positioned to serve many of these trade regions with new Dunkin’ NextGen stores that have a wider menu in the future,” said chief financial officer Kate Japson. That’s why today, we brought you an updated list of restaurants that announced store shutdowns in the months ahead.
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