Michelle ThompsonBurgerFi, the fast-casual burger chain and owner of Anthony’s Coal Fired Pizza, is running out of cash and might file for bankruptcy. The company reported having only $4.4 million as of August 14 and expects a quarterly loss of $18.4 million, up from a $6 million loss the previous year. This reflects the challenges many fast-casual chains face, as diners opt for home-cooked meals or better-value dining options. Chains like McDonald’s, Starbucks, and Wendy’s have seen reduced foot traffic and sales, turning to value meals to draw customers. Mod Pizza is also fighting bankruptcy, while Red Lobster has already filed.
BurgerFi stated that its senior lender could demand immediate repayment, which the company cannot afford. This could result in the lender taking control of its assets. The company, which operates 60 pizza stores and 102 burger restaurants, is uncertain if it can continue without additional financial support.
Store closures and rising food prices, particularly for chicken wings, along with higher wages, have contributed to the company’s financial struggles. BurgerFi has been exploring options since May, including additional financing, selling assets, or selling the entire company. On August 9, it secured $2.5 million in emergency funding, but there’s no guarantee this will cover all its debts. BurgerFi, which went public in 2020, has seen its stock drop nearly 60% this year, trading at just 33 cents as of Monday.
