A well-known burger chain is getting much smaller. BurgerFi says more than 300 locations are expected to shut down as the company restructures, with Ohio among the hardest-hit states.
The move follows months of financial trouble at BurgerFi International, the owner of BurgerFi and Anthony’s Coal Fired Pizza & Wings. For customers and workers, it means fewer restaurants, job uncertainty, and another sign of how tough the restaurant business has become.
Bankruptcy set the stage for a major reset
BurgerFi International filed for Chapter 11 bankruptcy protection in September 2024 after reporting ongoing cash pressure, weaker sales, and rising operating costs. The company said at the time that it needed court protection to keep operating while it worked on a sale process and broader restructuring plan. According to court filings and company statements, the goal was to preserve the brands while cutting unprofitable operations.
The company had expanded quickly over the years through a mix of corporate and franchised stores. That strategy left BurgerFi with a large footprint, but also exposed it to higher labor, food, rent, and interest costs as the economy shifted. Executives said inflation and softer consumer spending had made it harder for many locations to remain viable.
The closure plan affects both BurgerFi and some affiliated restaurants tied to the broader restructuring. While exact timing varies by market, the total reduction has been described as more than 300 locations across the system. That makes it one of the bigger restaurant pullbacks tied to the recent wave of financial distress in the fast-casual sector.
Ohio is expected to feel the impact sharply
Ohio stands out because it has a concentration of affected restaurants tied to franchise operators in the BurgerFi system. In several markets, underperforming stores have already closed or are preparing to close as leases expire or operators wind down business. For local communities, that means empty storefronts in shopping centers and more uncertainty for hourly employees.
The impact is especially notable in suburban retail corridors where burger chains depend on steady traffic and repeat family spending. When that traffic weakens, restaurants with higher menu prices or slimmer margins can run into trouble quickly. Industry analysts say chains in the premium burger segment have been squeezed between lower-cost fast food rivals and full-service casual dining promotions.
The Ohio closures also matter because restaurant jobs often turn over into other local service work, but not always right away. Workers can face gaps in income, and nearby businesses can lose shared foot traffic. Landlords, meanwhile, may struggle to refill restaurant spaces that were built around highly specific kitchen layouts and drive-thru patterns.
Why BurgerFi and similar chains are under pressure
BurgerFi built its reputation around antibiotic-free beef, made-to-order burgers, and a more upscale fast-casual experience. That pitch worked well when consumers were trading up and dining rooms were busy. But in the last two years, many restaurant companies have said guests are pulling back, ordering less often, or trading down to cheaper meals.
At the same time, operators have faced stubborn costs across nearly every part of the business. Beef prices, insurance, rent, utilities, and wages all remain elevated compared with pre-pandemic levels. Even when sales rise modestly, profit can still disappear if discounts become necessary to keep customers coming in.
Restaurant finance experts have said chains with debt and inconsistent store-level performance are especially vulnerable. Bankruptcy does not always mean liquidation, but it often brings a hard review of every location. Stores that cannot generate enough cash after food, labor, and occupancy costs are usually the first to go, no matter how well known the brand may be.
What customers and communities should expect next
For customers, the most immediate change will be simple: fewer BurgerFi locations and possible changes to gift cards, loyalty programs, and store hours during the restructuring process. Companies in Chapter 11 often continue operating while they sort out sales, leases, and creditor agreements. Still, closures can happen quickly once a store is identified as unsustainable.
For employees, the outlook depends on whether individual restaurants are corporate-run or franchised. Some workers may be absorbed by nearby locations or other restaurant employers, while others may lose shifts with little notice. State labor agencies and local workforce offices often become key resources when restaurant closures happen in clusters.
The bigger picture is that BurgerFi’s downsizing reflects a harsh reality across the food business in 2024. Consumers remain price-conscious, and chains that expanded during better times are now having to shrink to survive. Ohio’s losses make that national trend feel especially local, as another recognizable restaurant brand retreats from communities that once looked like solid growth markets.
