AUSTRALIA- Japanese fast food chain MOS Burger has announced it will close all three of its Australian outlets by August 31.
All of the affected outlets are located in Queensland- Sunnybank, Southport, and Upper Mount Gravatt after 13 years in the country. The Sunnybank outlet was launched in April 2011.
The company announced the closure via an Instagram post, “After much consideration, we have made the difficult decision to close all MOS Burger locations in Australia. Our last day of trading will be August 31, 2024.”
The QSR chain has not revealed the reasons behind the three outlets’ closures. However, the QSR sector has faced significant challenges in the past year.
High inflation has caused the cost of inputs and ingredients to increase, which has been translated to higher prices to customers. Inflation has also reduced customers’ disposable income, reducing their propensity to eat out and stifling demand.
Customers have also become weary about prices and value deals, which has made the sector more competitive.
High inflation has also made access to capital more expensive because of higher interest rates.
All of these factors have resulted in dwindling sales and margins for many QSR chains, albeit in the wake of rising operational costs.
Competitor McDonald’s reported its first global sales decline since the COVID-19 pandemic in the first half of 2024, an indication of the current market challenges.
Chris Kempczinski, McDonald’s CEO, commented on the announcement by saying, “Lower-income families are in many cases’ dropping out of the market, eating at home and finding other ways to economise.”
“MOS Burger to close all Australian outlets by the end of August does not come as a surprise.”
MOS Burger has also not revealed its plans following the closure.
The QSR chain was established in 1972 and has since established itself as a major player in the sector in Japan and the Pacific region, competing with big time chains like McDonald’s and bento chain Hotto Motto, with over 1,300 restaurants in Japan.
The chain also boasts a strong presence in Asia, with approximately 400 locations across Singapore, Taiwan, Hong Kong, Thailand, South Korea, and the Philippines.
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