As several area fast-food restaurants closed in recent months, an industry expert painted a bleak picture for the future of burger joints.
A Burger King restaurant in Fairview Twp., Luzerne County, closed Feb. 11 and another in the Eynon section of Archbald — a staple in the Midvalley for five decades — followed suit less than a week later. Signs on the doors of both buildings informed customers about the permanent closures, thanked patrons for their support and referred them to other locations in the region.
A note informs cusotmers of the closing of the Burger King on the Scranton Carbondale Highway in the Eynon section of Archbald. The restaurant permanently closed Feb. 17. (CHAD SEBRING/STAFF PHOTO)
Burt Flickinger III, managing director of Strategic Resource Group, a New York-based retail and consumer goods consulting firm, anticipates more closures could be on the horizon.
“There is the biggest contraction in the industry in 70 years,” Flickinger said. “People can’t afford to go to Burger King anymore. Historically, the cost of food has been marked up about 300% and now it’s marked up 800% to 900%, and the cost of beverages marked up 1,500% to 2,000%. A family of five going to a McDonald’s drive-thru would be paying $60, which is essentially half to three-quarters of a grocery bill. Fast food is unaffordable.”
A Taco Bell restaurant in Wilkes-Barre Twp. closed in late January. Flickinger feels that closure may be more of an anomaly as he noted the chain is mitigating the factors impacting the industry by offering high-quality food and better value pricing.
“Taco Bell will weather the storm as will Popeyes and Buffalo Wild Wings and very few other companies, especially the burger-based companies,” he said.
The Taco Bell on Route 309 in Wilkes-Barre Twp. abruptly closed in January. (FILE PHOTO)
Christina Mueller-Curran, an owner/operator of Clarks Summit-based Mueller Family McDonald’s, which has 21 locations throughout the state — including restaurants in Mountain Top, Hanover Twp., Wyoming, Shavertown, Old Forge, Scranton, Dickson City, South Abington Twp., Archbald and Carbondale — feels optimistic about the future of the fast-food chain.
“The industry is projected to be down a little bit this year, and the economy in general,” she said. “It was a really hard winter and maybe people just don’t have the discretionary money to spend at the moment. From an industry standpoint, there is a little bit of shrinking and heating bills went up, and maybe it’s some uncertainty with the economy. It’s projected to recover in the second half of the year. It’s just sort of a rough start.”
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Mueller-Curran doesn’t believe the local Burger King closures necessarily reflect the state of the current fast-food landscape.
The signage has been removed from the Burger King on the Scranton Carbondale Highway in the Eynon section of Archbald. The restaurant permanently closed Feb. 17.(CHAD SEBRING/STAFF PHOTO)
“I think those locations that closed had underperformed for quite some time,” she said. “I don’t think that was new news.”
Mueller-Curran described the current situation surrounding her family’s restaurants as “financially stable” and expects better times ahead.
“We just have to get through this uncertain first-quarter period and we should be bouncing back,” she said. “I think our industry has also offered fast, affordable, quality food and I don’t think that’s going to go away anytime soon. I think people’s disposable income is down because of other expenses, but I think there is always going to be a place for us in the market. I just think people are pulling back because they don’t have the money.”
While McDonald’s has been insulated from the rapidly rising egg prices due to a hedging process to lock in set rates, Mueller-Curran stated other elevated costs have created challenges.
“Insurance costs and operating costs have increased substantially since COVID,” she said. “And the inflationary pressures are affecting our business just like they are at someone’s house.”
Mueller-Curran said McDonald’s will be adding crispy snack wraps back to the menu in June and new chicken strips in May.
The cost of dining out, in general, has increased significantly in recent years as average menu prices at restaurants rose 27.2% between February 2020 and June 2024, according to data from the Bureau of Labor Statistics (BLS).
The signage has been removed from the Burger King on the Scranton Carbondale Highway in the Eynon section of Archbald. The restaurant permanently closed Feb. 17. (CHAD SEBRING/STAFF PHOTO)
Additionally, the Consumer Price Index for limited service meals — encompassing fast-food chains — increased 3.3% over the year, as of January, according to the latest BLS report.
With several other retail sectors having been impacted by mass closures in recent years, Flickinger sees a similar outlook for quick-service restaurants.
“The next major wave for the retail ice age is going from chain drugstores to chain dollar stores, and fast-food chains will be the next leading the casualty count,” he said. “Everybody is hoping for the best for fast food, but it looks like it will be the worst economically, financially and tragically for the workers and vendors, and the people who are counting on these stores to survive to pay property taxes and school taxes.”
