Burger King has had better days.
“Home of the Whopper” used to be the obvious number two burger chain in the United States. From Pepsi to McDonald’s (MCD) – Get a free report Coke, an international restaurant brand (QSR) – Get a free report fell to third place in the US, lagging behind Wendy’s (HI BEAUTY) – Get a free report.
It’s a sad position for a company as rich in history as Burger King. On the plus side, however, Burger King has great brand recognition. Everyone knows what the company does and understands its core menu. That puts the chain in a good position for a respawn.
People may not visit Burger King right now or feel great about the chain, but they have a favorite past association with it. That’s why the fast food giant has relied on the past to bring back its classic “long” sandwich in some new varieties.
Now, Restaurant Brands International has a bold plan of change, and it’s making some important moves to support those efforts.
Burger King
Burger King rents keys (Do the Dew)
At the end of 2022, Burger King’s parent company unexpectedly hired a former Domino’s employee (DPZ) – Get a free report Chief Executive Officer Patrick Doyle as Executive Chairman. During her time in charge of the pizza giant (2010 to 2018), Doyle delivered 29 consecutive quarters same store sales increased and system-wide sales increased from $5.6 billion to $13 billion.
That’s a hefty rent for the parent company, and it will benefit Burger King because Doyle is an expert in operations. Now, RBI has hired a key person who will work directly for Burger King.
Pat O’Toole, a longtime PepsiCo (PEP) – Get a free report The most recent chief executive officer, chief marketing officer for the company’s Mountain Dew brand, will join Burger King in a similar role on February 6. O’Toole will be “responsible for leading the efforts” marketing to help drive traffic, drive sales growth, and amplify the fundamental advances the brand is making for the Guest experience — to support an existing Reclaim the Flame plan of the shared brand by 2022 — and supported by over 96% of Burger King Franchisees nationwide,” the company said in a press release.
Tom Curtis, President of Burger King North America, said: “Pat joins us at a critical time for the brand and brings the right mix of perspectives, experience and expertise to help BK achieve be successful in 2023 and beyond. “We have an incredible plan that has been formulated and validated by our franchisees. Pat will be joining this team to strengthen and build on our existing plans alongside those of the future. our franchisee, taking advantage of his impressive background and past experience.”
Burger King tries to catch up with Wendy’s, McDonald’s
“Reclaim the Flame” is Burger King admitting that the brand may have lost its way. The program was announced in September 2022 with the goal of driving traffic and sales growth while boosting franchisee profits at Burger King US.
RBI CEO Jose Cil spoke about those efforts in the chain third quarter earnings call.
“We developed this plan in partnership with a diverse representative group of BK franchisees from across the country, who all have one thing in common. They have the respect of their colleagues and tributes. dedicated to meeting the needs of customers, franchisees, team members and brands,” he said.
Marketing and advertising will be an important part of “Reclaim the Flame,” and the parent company has committed $400 million to those efforts. That started with a dense series of ads that combined the chain’s old “do it your way” tagline with a new approach.
“The launch of You Rule also marks the beginning of our historic Fuel the Flame ad co-investment,” he said.
The advertising investment will total $120 million over nine quarters. It’s just part of an effort to turn the tide of the chain.
“Another key element of the plan is our $250 million Royal Reset investment which includes two key components,” said Cil. “First, the $50 million Royal Reset Refresh capital investment in restaurant technology, kitchen appliances and a building enhanced refresh program; and second, the Royal Reset Remodel program provides the ability to access $200 million in funding for high-quality, high-margin remodeling.Together, we expect the Royal Reset and Renovate programs to reach about half of homes. across our network over the next two years.”
