From now on, German guests will no longer be able to enjoy the Better Burgers of the Austrian chain Burgerista; insolvency proceedings of the German main franchisee have been ongoing since the end of April. 12 stores remain in Austria, further growth is targeted, it is said.
"Withdrawal from the German market - temporarily!", the Austrian better burger specialist Burgerista informs the editorial office FOOD SERVICE upon request. Most recently, the gastro-company operated a total of 21 units, 12 of which were in Austria and nine in Germany. Insolvency proceedings of the German main franchiseehave been underway for the German units since the end of April, and the first locations have already been taken over by Ruff's Burger and Five Guys.
With 12 locations
, Burgerista is and will remain the market leader in the better-burger market in Austria
, says Thomas Burscheidt, CEO at Burgerista since February 2021.
The less positive side: Burgerista will temporarily withdraw from Germany (9 units)
. "Due to the permanent closures during the COVID-19 pandemic and the uncertain further perspective for the gastronomy, the franchisee will not continue to operate the restaurants in Germany," Thomas Burscheidt states.
Active in Germany for six years
In 2015, Burgerista had ventured into the German market. The German locations were most recently operated by franchisee Quality Burger GmbH,
which had transferred the franchise concept that had been successful in the Austrian market to the German market as well.
"In particular, the high rents in city locations
and the associated high receivables
proved to be too great a burden and mortgage during the shutdowns, but also for a new start after the crisis," the company says.
After no changes to these general conditions could be achieved within the framework of protective shield proceedings, Quality Burger GmbH has been undergoing insolvency proceedings since the end of April 2021
. Oliver Schartl, Müller-Heydenreich Bierbach & Kollegen, is acting as insolvency administrator.
"Due to the permanent closures during the COVID-19 pandemic and the uncertain further outlook for the restaurant industry, the franchisee will not continue to operate the restaurants in Germany," states Thomas Burscheidt, CEO at Burgerista since February.
Good prospects for Austria
"In the Austrian market
, we plan to further expand
our market leadership in the better burger segment
," emphasizes CEO Burscheidt. Burgerista continues to focus on fresh meat instead of frozen meat, regional origin and sustainability. Burgerista's growth ambitions in Austria are to be underpinned by the newly opened flagship store in the Plus City shopping centre in Linz
, as well as by a completely revised Burgerista app
, which will be launched soon, and the development of new store formats
that take account of changing consumer behaviour. Numerous new locations of franchisee-managed restaurants are currently under consideration by Burgerista, it said.
"We are confident that Burgerista will be able to regain a foothold in Germany as conditions change
. We don't want to let down the large fan base that our brand has built up with its better-burger products!" says Burscheidt, formulating the long-term plans for the German market.
Burgerista was founded in Austria in 2012 and most recently had a total of 21 stores in Austria and Germany. In Germany, system sales in 2019 were €10.1 million net, according to foodservice Top 100.
Closed units partly taken over
Meanwhile, the first German locations
been taken over by other gastro brands
. "The Ruff's Burger
chain has secured the former Burgerista locations in Nuremberg (Königstraße 55) and in the Minto shopping centre in Mönchengladbach and plans to open there before the end of the year. Five Guys
is taking over one of the two former Burgerista stores in Aachen (Markt 46)", this is reported by the trade journal Immobilien-Zeitung, a sister paper of foodservice
of the dfv Mediengruppe
. Five Guys
currently operates 25 stores
in Germany (more than 30 planned by the end of 2021), Ruffs's Bur
ger from Munich, which cooperates with Otto's Burger from Hamburg (both Gustoso Group) come to 22 units