Meridian Restaurants Unlimited and TOMS King Holdings, two large Burger King franchisees, declared bankruptcy in 2023 owing to revenue and traffic reductions.
Popeyes franchisee Premier Cajun Kings declared bankruptcy last week.
Premier Cajun Kings has 19 Southern shops, but the COVID-19 epidemic, badly performing outlets, and the sudden death of its founder in May 2022 all hurt the firm.
"This devastating loss, coupled with many macroeconomic variables, has generated great uncertainty and upheaval inside the firm," court filings from the bankruptcy application claimed.
Premier Cajun Kings began in 2018 with six Popeyes locations in Birmingham, Ala. Sidhu increased his inventory by adding 24 new outlets in Alabama, Georgia, and Tennessee between 2018 and 2019.
In 2020 and 2021, those 30 eateries generated over $30 million in revenue and employed approximately 500 workers.
In addition to Sidhu's death and pandemic pressures, inflation, high borrowing rates, and "an increasingly restricted qualified labor force" plagued the franchisee.
Premier Cajun Kings shuttered 10 Alabama and Tennessee locations to stabilize the business and avert further losses. A landlord also evicted an 11th location.
The Cajun Kings' Popeyes patrons may not have to say goodbye yet. The business hopes to operate the sites during bankruptcy court procedures.
Premier Cajun Kings and franchisor Popeyes have also agreed to initiate a sales process and seek to have the eventual buyer sign into a new franchise agreement.
Restaurant Brands International appears to be doing well, even if some franchisees are struggling.
Restaurant Brands International hired a new CEO this month after beating analyst sales projections in the fourth quarter of 2022.