Syracuse, NY — The state has agreed to give the country’s largest owner of Burger King restaurants a $750,000 grant to stay in Syracuse after it is acquired by the fast-food chain’s parent company.
Under the deal, Empire State Development, New York’s economic development arm, would provide the grant to assist Carrols Corp. with renovating its building at 968 James St.
Carrols, in turn, would commit to keep its headquarters in Syracuse, while retaining the site’s 173 employees and hiring more workers.
New York would award the grant after Burger King’s corporate parent, Toronto-based Restaurant Brands International, buys Carrols as expected. RBI announced Jan. 16 that it had agreed to buy Carrols for $1 billion in cash. The deal is subject to shareholder approval. A special meeting of Carrols stockholders to vote on the proposed sale is scheduled for May 14.
After Carrols’ proposed sale was announced, RBI told state officials it was considering moving the Syracuse headquarters south, where a majority of Carrols’ restaurants are located, Kristin Devoe, a spokesperson for ESD, said in an email to syracuse.com | The Post-Standard.
“They will be required to maintain the jobs for a minimum of 5 years after the project is complete, but we anticipate, given the significant investments that will be made into their facility, that those jobs will remain for the long term,” Devoe said .
Kristen Viersen, a spokesperson for RBI, said the company cannot comment while the acquisition of Carrols is pending.
Carrols’ headquarters oversees the operations of 1,019 Burger King restaurants in 23 states — approximately 14% of all Burger Kings in the country. In addition, it oversees 62 Popeyes restaurants in seven states.
If shareholders approve the sale, Carrols will become a subsidiary of RBI and its stock will be delisted from the NASDAQ.
RBI has said it plans to invest $500 million, funded by Carrols’ operating cash flow, to remodel approximately 600 of the acquired Burger Kings over five years — a much faster remodeling plan than the one Carrols had adopted.
After the remodels, RBI plans to sell all but about 200 of the restaurants to small franchise operators who live in the communities where the restaurants are located. The 200 Burger Kings it will retain will be used for training and research and development purposes, it said.
The plan means RBI will need Carrols’ Syracuse staff to oversee the more than 1,000 restaurants it is acquiring for at least the five years it will take to complete the remodels. And longer term, it will need Carrols’ staff to operate the approximately 200 Burger Kings it plans to retain.
Planned improvements at the two-story headquarters include new energy efficient HVAC systems, basic office renovations, new bathrooms and electrical upgrades.
Govt. Kathy Hochul’s office announced the grants as part of the latest round of the state’s Regional Economic Development Council initiative.
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Rick Moriarty covers business news and consumer issues. Got a tip, comment or story idea? Contact him anytime: E-mail | X | Facebook | 315-470-3148
