Burger King UK expands despite cost pressures with £60m funding boost – London Business News | Londonlovesbusiness.com

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Burger King UK has unveiled plans to accelerate its expansion across Britain and Ireland, committing to open more than 30 new restaurants this year despite ongoing pressure on household finances and rising operating costs in the hospitality sector.

The fast-food chain, which currently runs 574 outlets in the UK, said it has secured a £60 million financing package from lenders including Metro Bank and OakNorth to support its next phase of growth.

The funding will be used to open over 30 new restaurants in 2026, with the majority of new sites expected to be company-owned, while the remainder will operate under franchise agreements.

More than 60 existing restaurants are also scheduled for refurbishment as part of the upgrade programme.

The expansion follows a year of steady growth for the group, which opened seven new restaurants in 2025 and completed 31 refurbishments. It also received £30 million in backing from long-standing investor Bridgepoint last year.

Despite acknowledging that “the macroeconomic environment remains challenging”, the company said some inflationary pressures had begun to ease. However, it warned that higher labour costs continue to weigh on the sector, even as wage growth shows signs of stabilisation.

Burger King said it has taken steps to shield itself from some cost volatility, including hedging against fluctuations in energy, food and foreign exchange markets.

The group has nonetheless continued to deliver a strong trading performance. In 2025, UK revenues rose 10 per cent to £448.7 million, while like-for-like sales increased by 6.8 per cent, driven in part by growing demand for home delivery. Underlying earnings also climbed 7 per cent to £28 million.

The expansion comes at a time when many hospitality operators are reassessing growth strategies amid subdued consumer spending, but Burger King said it remains confident in long-term UK demand.

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