In a recent SEC filing, fast-casual burger company Burger Fi said it was having a lot of money problems and expected to lose $18.4 million for the quarter ending July 1. The loss in the same quarter last year was only $6 million, so this is a huge jump. Every business has trouble with not having enough cash on hand.
Burger Fi only has $4.4 million in cash on hand as of August 14. Investors have been warned that if the company doesn’t get more money, it might have to “seek protection under applicable bankruptcy laws.”
How many restaurants could be affected by the cash shortage?
At this point, Burger Fi isn’t sure if it will be able to keep all 102 of its stores open across the country. Its other business, Anthony’s Coal-Fired Pizza, which has 60 stores and may also have to close because of money problems.
Burger Fi’s problems are part of a bigger problem in the food business. People’s budgets are tighter because of high inflation, so many avoid fast food and fast-casual eating. Less money being spent at these fast food places is hurting the economy. The following companies are also feeling the pinch:
- 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.