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Burger King reconsiders expansion in Romania

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Burger King fast food restaurants chain, operated under franchise system in Romania by Atlantic Restaurant System, is currently revaluating its expanding plans for this year due to the decreasing number of customers and their purchasing power.

Between April 2008 and April 2009, the company has already exceeded its plan with three locations. That is why the company is more relaxed regarding further openings, stated Remus Tiuca, General Manager of Burger King Romania.

Tiuca stated there is a client segment, which reduced visits to fast food restaurants and another category, which remains loyal, paying regular visits to the restaurant, but allocating a lower budget, reflected in the value of transactions.

The crisis has an impact on the revenues of Burger King, but the eight existing locations will have to generate sustainable revenues for the restaurant chain, so that opening new units should not be considered for supplementary revenue.

At the end of the last year, Atlantic Restaurant System announced its plan to open 10 Burger King restaurants in 2009, following investments of approximately EUR 5 mil.

Sursa: Business Standard [09.04.2009]

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