Topic > Burger King Case Study - 2966

Burger King, the world's second largest hamburger chain with approximately 13,000 outlets in 86 countries, dates back to the early 1950s. Approximately 97% of all Burger King restaurants are franchised. The company accounts for approximately 12% of total fast food hamburger sales in the United States (Market Line, 2013). Headquartered in Miami, Florida, Burger King over the years of its existence has made a great effort to expand not only throughout the United States but also globally. Burger King must compete with established food service companies such as McDonald's and Wendy's go along with a number of other restaurants trying to differentiate themselves from each other to capture a niche in which they can exploit. Burger King must compete nationally and internationally based on product choice, quality, convenience, service, and location (Morning Star, 2013). Burger King had immediate success with the introduction of the "Whopper" sandwich and its campaign. However, in the years before 3G Capital acquired the company, Burger King experienced declining sales, a lack of expansion, and a bland menu. The company and its restaurants cater to a broad spectrum of consumers by offering fast food at affordable prices. Burger King offers a limited assortment of food items such as grilled burgers, chicken and other specialty sandwiches, fries, sodas and other food items. To sustain future growth, Burger King needs to make a greater effort to expand internationally. Currently, the company is highly concentrated in the United States and Canada, which exposes them to many risk factors. It will be important for future growth and profitability that Burger King successfully implements... middle of paper... these refranchisees are willing and able to take on such initiatives. Appropriate incentives should be offered to franchise companies in the form of reduced initial franchise fees and limited-term royalty rate reductions to ensure that initiatives are fulfilled. Another main strategy that Burger King should incorporate into their company is to differentiate themselves more from their competitors. . One way Burger King can differentiate itself from other companies is its menu. Offering more products, which appeal to a larger consumer base, will only result in positive sales and improve brand image. To fully achieve the goal of close to 100% franchise business model, a reduction in the cost of entry for these Burger King Franchise is required. By doing so, overhead costs will be reduced and the company will be able to grow with minimal capital expenditure.