Are These Popular California Fast Food Restaurants Next to Close?

Ever been to a Popeyes fast food restaurant? There are 268 of them located in California, and only 3 in the state of Idaho.

However, following some recent news about a 17-unit Popeyes franchisee in Georgia declaring bankruptcy, many are wondering about this underperforming fast food restaurant, and whether or not their Idaho and California locations will be the next to permanently close?

Will More Popeyes Be Closing?

According to QSR Magazine, RRG, Inc., owned by Mark and Jane Rinna, cited significant losses from three establishments that have now forced the company into bankruptcy. This development raises concerns about the stability of Popeyes franchises, especially for Californians, where there are a staggering 268 Popeyes locations.

As the news of the bankruptcy unfolds, Californians are left wondering if their beloved Popeyes could be the next to face financial stresses, potentially resulting in store closures.

The bankruptcy wave isn't totally isolated to RBI, with Wendy's, Denny's, and Hardee's all experiencing sizable franchisee bankruptcies in the last year. Additionally, RBI, the parent company of Popeyes, has seen multiple Burger King operators and another Popeyes franchisee succumb to financial pressures in the past year, according to QSR Magazine.

Despite the industry challenges, Popeyes U.S. reported positive figures in the fourth quarter of 2023, and they aim to increase franchisee profitability to $300,000 per unit by 2025, a significant leap from the $245,000 achieved in the previous year.

As people in California wonder about what will happen to their neighborhood Popeyes restaurant, they're also thinking about how other franchise owners are facing challenges. This makes us consider how well fast-food businesses can handle the current and upcoming economic uncertainties.