Mini Case Burger King Group 1

Group #1
Group members
1. Ani khujadze
2. Medea Bagatrishvili
3. Lika Toklikishvili
4. Salome Tchanturia
5. Nino Laoshvili
1.Research online on the current stance of Burger King - what has changed since
the analysis provided in the case
Burger King is a quick service restaurant chain operating restaurant worldwide with headquarters based
in Florida, United States. Much like many quick service chains, its menu has since grown to include
options such as breakfast, dessert, and signature menu items such as the "Whopper". Most recently,
Burger King has released the "Impossible Whopper", made with a plant-based patty, to appeal to those
reducing meat consumption. These days, Burger King is amongst the most valuable quick service brands
in the world with a value of over seven billion U.S dollars in 2019.
In 2019, globally famous quick service restaurant chain Burger King operated and franchised a total of
18,838 restaurants worldwide. The vast majority of those stores were franchised restaurants, only 52
remained company-operated. Burger King’s revenue was at 1.78 billion U.S. dollars during its 2019 fiscal
year. Of the total revenue, 80 thousand U.S. dollars was earned through company-operated restaurants,
while 1.7 billion U.S. dollars was from franchise and property revenue. Burger King’s restaurant sales
amounted to 76 million U.S. dollars in 2019.
In 2010, Burger King was purchased by the investment firm 3G Capital making it a privately held
company. Investment firm 3G Capital went on to purchase the Canadian coffee house chain Tim
Hortons in 2014, an indirect subsidiary of RBI merging the restaurants under the parent
company Restaurant Brands International (RBI). Both Burger King and Tim Hortons maintain separate
brands and headquarters despite Restaurant Brands International being a single publicly traded
company, which began trading in December of 2014. Additionally, on March 27, 2017, RBI purchased
Popeye’s Louisiana Kitchen (via Orange, Inc.) adding the restaurant to their subsidiaries.
Burger King uses differentiated targeting strategy so as to address the needs of the customers
accordingly. Most of the fast-food chains position themselves on the serviceability & convenience
factors and Burger King is not an exception to this.
 Burger King always reinvents and rejuvenates itself with new and highly innovative offerings. It
introduced plant-based sandwiches called Impossible Whopper, which attracted new customers
and helped the company to beat 2nd quarter profit expectations in 2019.
 Burger King recently released a repulsive ad showing a preservative-free burger deteriorating
over 34 days. This attention-grabbing ad ensures that consumers always recognize the brand for
being all-natural.
 Burger King’s earnings increased by nearly 30% after launching a healthier sandwich known as
Impossible Whopper. The company can exploit the ever-increasing demand for healthier foods
by increasing plant-based options in its menu.
 From Asia to Africa, the Middle East, and Latin America, emerging economies offer unsaturated
markets and a high potential for growth.
 During the pandemic, in an attempt to revive the restaurant industry, Burger King has sent out a
tweet asking customers to order from McDonald’s.
 Less capital intensive -90% of Burger king outlets are owned by franchisee, a strategy which
helped them in being focused towards innovating their menus rather than worrying about
finances.
 Strong Product line: Apart from offering hamburgers in different sizes, it also serves grilled
burgers, breakfast meals, beverages, desserts, sandwiches, Chicken items. It is the 2nd largest
fast food restaurant chain in the world in terms of number of restaurants & sale.
Burger King: ad spend in the U.S. 2010-2019 (Release date: July 2020)
Burger King raised its advertising spending to 372 million U.S. dollars in the U.S. in 2019. However, their
investment in advertising in the country decreased between 2017 and 2018 by 17 million dollars. In fact,
up until then, since 2016 the chain has been lowering its promotional spending in the country. At the
same time, Burger King’s parent company Restaurant Brands International saw an increase in global ad
expenditures of roughly 65 million dollars, reaching 858 million in 2019.
Sales of Burger King worldwide 2013-2019 (Release date: February 2020)
The statistic shows the restaurant sales of Burger King from 2013 to 2019. In 2019, the sales amounted
to 76 million U.S. dollars.
Supplementary notes:
 Fiscal year ended December 31 of each year.
 Includes Restaurant VIEs Burger King merged with Canadian coffee chain Tim Hortons under
parent company Restaurant Brands International in December 2014. On March 27, 2017,
Restaurant Brands International acquired Popeyes Louisiana Kitchen, Inc. and its
consolidated subsidiaries.
American customer satisfaction index scores of Burger King restaurants in the
United States from 2000 to 2020* (Release date: July 2020)
This statistic shows the American customer satisfaction index scores of Burger King restaurants in the
United States from 2000 to 2020. Burger King's American Customer Satisfaction Index (ACSI) score was
76 in 2020, which was consistent over the past three years. Comparatively, competitor McDonald’s only
scored 69 points in the 2019.
The limited-service restaurant industry was not measured in 2004 due to a change in quarterly
measurement system that was in place at that time.
2.Analyze the case provided - provide your recommendations going forward

Based on BK history and this SWOT analysis BK is still struggling first of all for stability on market as FFHR
and second of all for market penetration. There are some recommendations for BK, which might be
helpful for maintaining competitiveness and gaining bigger share of market.
1.Increasing service quality and speed is essential for BK, while there is very strong competitor
(MacDonald’s) on the fast food market with high level of competitiveness in all those aspects;
2.Product diversity is another key for BK success. Widening product mix will provide BK with new
customers, which will potentially become loyal ones;
3.Emphasizing on an environmental friendly attitude will be very ethical behavior appreciated by

existing and potential customers;
4.Offering healthier food and supporting healthy lifestyle will be profitable, because of more and
more growing demand on this kind of lifestyle by customers especially from new generations;
5.Promoting and offering different variations of product “WHOPPER”, which differentiates BK

from MacDonald’s;
6.Stabilizing management team is essential for business stabilization. Management team should
be responsible for the implementing standards, rules and procedures in all branches worldwide.
For the customers it’s very comfortable to receive the same quality of service and speed in any
branches of one restaurant chain worldwide.
BK has potential to become leader on fast food market only after working more on it business strategy.
It should concentrate on stability to implement and maintain the same standards in every restaurant,
which will be the precondition for growth horizontally as well as vertically.
3.Prepare IFAS/EFAS/SFAS/TOWS
See excel file attached.

Mini Case Burger King Group 1

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Group #1

2.Analyze the case provided - provide your recommendations going forward

3.Emphasizing on an environmental friendly attitude will be very ethical behavior appreciated by

5.Promoting and offering different variations of product “WHOPPER”, which differentiates BK

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