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Birmingham Post
Birmingham Post
Business
Coreena Ford

Burger King could be forced to close 10% of UK restaurants

Burger King UK's CEO has warned that up to 1,600 jobs could be lost as a result of the coronavirus pandemic.

Only about 370 of the restaurant chain's 530 UK stores have reopened since the nation went into lockdown.

Chief executive Alasdair Murdoch told the BBC's Newscast the economic damage stemming from the crisis could ultimately force the company to permanently close up to 10% of its stores.

He told Newscast: "We don't want to lose any (jobs). We try very hard not to, but one's got to assume somewhere between 5% and 10% of the restaurants might not be able to survive.

"It's not just us - I think this applies to everyone out there in our industry."

Yesterday Chancellor Rishi Sunak unveiled a £30bn support package to help boost the nation's economic recovery, which included plans to subsidise restaurant bills throughout August to encourage people to dine out.

However Mr Murdoch added that Government schemes do not do enough to compensate restaurants for the combination of fixed costs and lost sales throughout the pandemic, telling Newscast: "I don't think you can ever get over the top of this problem."

The casual dining sector had been struggling before the pandemic but the enforced closure during lockdown has hugely impacted a number of businesses.

Last week it emerged that almost 2,000 jobs will be lost after Casual Dining Group, the owner Bella Italia, Cafe Rouge and Las Iguanas, called in the administrators, saying it would close 91 of its 250 restaurants.

Meanwhile Upper Crust and Ritazza owner SSP, known for serving transport hubs around the UK and overseas, announced plans to shed up to around 5,000 jobs - almost half its workforce - as a result of plunging passengers numbers at train stations and airports due to the coronavirus pandemic.

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