Grand Forks Burger King on Gateway Drive closes
Apr. 14—GRAND FORKS — A Burger King franchisee seeking Chapter 11 protection has closed 23 restaurants in seven states, including a Grand Forks location.
The Burger King at 3765 Gateway Drive in Grand Forks closed on Monday, April 10, according to signs posted on its front door and drive-thru window.
"We apologize for the inconvenience and look forward to serving you at one of our other locations," the sign reads.
By Friday, April 14, "Burger King" signs on the outside of the building, in the parking lot and in the drive-thru had been removed. Inside, a small crew of workers was cleaning the kitchen, but could not comment on the store's closure.
The restaurant was operated by Meridian Restaurants Unlimited, a company based in South Ogden, Utah. Meridian filed for voluntary Chapter 11 bankruptcy on March 2. The franchisee operated 118 Burger King restaurants in nine states, making it one of the largest Burger King franchisees.
In a declaration by James Winder, Meridian chairman, he wrote the bankruptcy filing came as the cost of labor, shipping and food has increased in the last few years, and the availability of labor has decreased. According to court documents, the average wage for a worker within the franchisee's Burger King restaurants is 33% higher today than it was in April 2020.
Through the COVID-19 pandemic, Burger King restaurants have experienced less foot traffic, resulting in declining revenue, wrote Winder, while still having to fulfill rental and debt obligations. He said many of the restaurant locations were underperforming when acquired by Meridian, and the smaller profit margins in stores owned by the company have made the restaurants more sensitive to the rising costs of operation.
The 23 Burger King locations closed were identified to be operating at a loss. According to court documents, the restaurants chosen to be closed contributed, on average, losses of around $300,000 each month.
Further store closings are possible, say court documents, but most restaurants operated by Meridian will not be affected.
"For the avoidance of doubt, however, the Debtors do not anticipate closing all or even a substantial portion of their Restaurants, and at this time, only the Restaurants specifically addressed in this motion have been identified for closure," read court documents.
Of the 23 stores closed, the Gateway Drive location is the only one in North Dakota. Five locations in Minnesota were closed, including the
Burger King in north Moorhead.
Meridian also owned the
East Grand Forks Burger King
near the intersection of U.S. Highway 2 and Minnesota Highway 220, which closed in January 2021.
According to Meridian's website, it operates the Burger King locations on Washington Street and 32nd Avenue in Grand Forks. It also operates the Burger King restaurants in Hillsboro and Devils Lake.
