According to the individual who created the company's forecasting model, Burger Chef closed because the split of profits between franchise owners and General Foods, which owned the company, was too disproportionate for the latter to be able to sustain the business.
Alternatively, some business analysts argue that Burger Chef's growth was too fast, which ultimately led to its collapse. Burger Chef began franchising very soon after it opened in the 1960s. In the 1970s, Burger Chef was second only to McDonald's in fast food chain locations. General Foods eventually sold Burger Chef at a loss to the same company that operates the Hardee's chain.