In a recent SEC filing, fast-casual burger chain BurgerFi disclosed significant financial struggles, revealing an anticipated loss of $18.4 million for the quarter ending July 1. This marks a stark increase from the $6 million loss reported in the same quarter last year. Lack of cash is always a great issue for any company.
As of August 14, BurgerFi has just $4.4 million in cash reserves. The company has cautioned investors that without an influx of funds, it may be compelled to “seek protection under applicable bankruptcy laws.”
How many restaurants could be affected by the cash shortage?
BurgerFi is currently uncertain about its ability to keep its 102 restaurants nationwide operational. The financial woes extend to its other venture, Anthony’s Coal-Fired Pizza, which operates 60 restaurants also facing potential closure.
BurgerFi’s struggles are part of a broader trend affecting the restaurant industry. High inflation has tightened consumers’ budgets, leading many to avoid fast food and fast-casual dining options. Less cash spent in these fast food restaurants is causing financial difficulties. Other chains feeling the pinch include:
- Boston Market
- Red Lobster
- Pizza Hut
- Buca di Beppo
- TGI Fridays
- Popeyes
- Tijuana Flats
- Cracker Barrel
- Applebee’s
As costs continue to rise, the future of many beloved dining establishments hangs in the balance.