Burger King spends $1b to buy its largest franchisee
The move is part of the company’s Reclaim the Flame plan.
Restaurant Brands International has bought all Carrols Restaurant Group, Inc. for US$1b
Carrols is the largest Burger King franchisee in the United States today, operating 1,022 Burger King restaurants in 23 states that generated approximately US$1.8b of system sales during the twelve months ended September 30, 2023. Carrols also owns and operates 60 Popeyes restaurants in six states.
According to Tom Curtis, president of Burger King US and Canada, the move is an accelerator to the brand’s Reclaim the Flame plan.
In 2022, Burger King made a US$400m investment in 2022 in remodels and improving operations by enhancing marketing and the brand's technology. This birthed the Reclaim the Flame plan which aims to accelerate sales growth and drive franchisee profitability.
Burger King expects to significantly accelerate Carrols' current rate of remodels to bring the acquired portfolio to a modern image over the next five years. To accomplish this, the team plans to invest approximately US$500m of capital, funded by Carrols' operating cash flow, to remodel approximately 600 acquired restaurants that are not currently considered modern image.