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Burger King warns British job search

 


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British Prime Minister Burger King UK warned that the economic damage caused by the coronavirus epidemic could permanently close fast food chain stores up to 10% of restaurants.

Alasdair Murdoch said the closure could cause more than 1,600 jobs to disappear.

He said the restaurant industry wasn’t enough to overcome the combination of fixed costs and lost sales.

“I don’t think you can overcome this problem,” he said.

Burger King reopened about 370 of the 530 restaurants in the UK, Murdoch told the BBC’s newscast

Wednesday, Minister Rish Sunak said the government will subsidize the cost of up to 10 restaurants per person in August to boost consumer spending.

Murdoch predicted that this is an “innovative approach” and that Burger King will participate.

However, despite the plan and other government support, he said the chain could close 5-10% of its stores due to rent and “absolutely no money” costs.

The closure would lead to job losses between 800 and 1,600, he said. The chain has more than 16,500 UK employees, he said.

“If we can avoid it, we will,” he said.

“We don’t want to lose anything. We try not to try, but between 5% and 10% of restaurants may not survive,” he told a BBC newscast.

“It’s not just us. I think it applies to everyone in our industry,” he said.

The company is promoting renegotiation of rent, but said “some of the high-rise roads will never come again.”

Murdoch, who had already mentioned that Burger King would withhold payments, called the rent a “decisive issue”. He said he hopes the government will consider more active support on this issue.

He added that the government’s start-up system and the reduction of VAT on restaurants are already aimed at avoiding job losses.

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