Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                

Burger King Case Study

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 16

1

Burger King's Operations Performance Objectives, and Management Strategies

Burger King, opened in 1954, currently stands as a powerful contender in the worldwide

fast-food sector known for its flamed burgers and creative menu items. Numbering over 18,000

locations spread across more than 100countries, the Burger King is a reflection of the long

lasting victory of operational tactics and competitive pillars. To unveil the complex operations of

Burger King, one has to look into their corporate identity, key points of distinction, and operation

characteristics. In the industry of fast-food the fierce competition and the changing customers'

preferences require Burger King's strategic positioning and operational management to be well-

developed. As emphasized by Slack et al., (2019), efficient operations management contributes

significantly to organizations to obtain enduring competitive advantage and to enhance business

performance. For Burger King, the sophistication of its operation goes beyond mere efficiency

including innovative strategies to set its products apart, engage customers and even market

expansion.

While Burger King’s principal differentiator from its rivals resides in its signature

cooking method - flame grilling. Unlike classic fast-food chains that use traditional deep-frying

methods, Burger King’s flame-grilled burgers boast a different taste, targeting customers who are

looking for an enhanced dining experience (Musonera, 2019). The product differentiation

strategy solidifies the company`s pledge to the culinary innovation and customer care, becoming

a competitive advantage in the over-crowded category. The competitive priority of Burger King

is Innovation through the delivery of value propositions, operational agility and service

excellence (Johnston & Clark, 2015). Facilitated by the concerted efforts of its strategic

marketing campaigns, menu diversification, and operational streamlining, Burger King has

cemented its position, appealing to various consumer segments and creating brand loyalty. The
2

paper aims to present a thorough account of the operations management strategies of Burger

King, comprising corporate-level objectives, branch-level operations, performance appraisal, and

strategic recommendations for continued growth and competitiveness in the fast-food industry.

Corporate-Level Analysis of Burger King

Founded in 1954 by “James McLamore and David Edgerton”, Burger King has risen to

become a global heavyweight in the fast-food sector, acclaimed for its flame-grilled burgers and

creative menu items. With an intimidating global coverage spanning over 100 countries and

operating as a brand owner of over 18,000 outlets worldwide, Burger King has reshaped fast-

food by its dedication to quality, taste, and customer satisfaction as (Rubenstein, 2017). Being

one of the first in the industry, Burger King differentiates itself from competitors through

culinary innovation, operational excellence, and a customer-centric approach to business. Hence

this examination for the case of Burger King, our analysis investigates the chain's corporate

strategies, competitive edge and the change in its competitive priority over time.

Competitive Distinctions of Burger King

Burger King is different from its fast-food competitors mainly because of its distinctive

branding of specific products and their methods of preparation. One of the important things that

set Burger King aside is their focus on grilling its burgers using flame. Unbeknownst to many of

its rivals who use traditional frying techniques, Burger King's flame-grilled burgers have a

charred smoky taste that appeals to consumers pursuing an authentic and savory dining

experience (Erickson & Rothberg, 2019). In addition, Burger King ’s menu variety becomes its

niche in the industry. Most fast food chains offer a limited assortment of items while Burger

King have a variety of options that appeals to varying customer tastes (Teoh et al., 2023).

Ranging from the traditional flame-grilled burgers to the new limited-time offerings, such as the
3

Whopper and the Impossible Whopper (a plant-based alternative), Burger King brings fresh

menu items to the market to win the customers and keep up with the competition.

Beside its variety of offerings, Burger King's marketing tactics contribute to his

competitive edges as well. The company has created successful ad campaigns which catch the

consumers’ attention and emphasize its image as a rebel, irreverent and chic brand. For instance,

slogan such as "Have it your way" and the "The king is back" have played a crucial role in

developing a strong brand identity for Burger King, and by so doing, it connects with their target

market on an emotional level (Marco, 2021). Burger King’s policies relating to value pricing and

promotions differentiate it from other competitors. The brand is known for providing value

meals, combo deals and discount promotions which are very appealing to budget-conscious

consumers yet it does not compromise on product quality and taste.. Through affordable options

but not failing to live to its promise of taste and satisfaction, Burger King attracts the market and

has a faithful customer base. Burger King’s competitiveness derives from its innovative product

line, different marketing strategies and value-oriented pricing. Through its core values of quality,

taste and affordability Burger King continues styling its own path in the fast food business which

is very competitive.

Competitive Priority and Development of Burger King

Core competency of Burger King lies in its value-driven propositions on which the

operational agility and service excellence are delivered. This strategic focus has undergone

changes through the years via blending of innovative initiatives, operational improvements as

well as customer driven strategies. Burger King, at the beginning, mainly competed on price and

speed, offering cheap meals served quickly. Nevertheless, with the fast-food industry getting

fiercely competitive, Burger King realized that a change was in need to distinguish itself more
4

than with pricing the only. As a result, the brand reoriented towards product innovation, quality

and customer experience as the main competitive priorities.

Burger King's approach to sustaining its competitive advantage is product innovation and

menu diversification. As a result of foray of signature items like the Whopper and the Big King,

as well as limited-time offerings which include seasonal sandwiches and specialty burgers,

Burger King is still relevant and attracts new customers (Harrington et al., 2017). Moreover, the

Impossible Whopper (a plant-based alternative), which was launched by Burger King is a

reflection of the branding appreciation of culinary innovation and its ability to adjust to the

changes in consumer tastes and dietary trends. Similarly, Burger King has invested in technology

and operational efficiency to position itself competitively. The introduction of digital ordering

platforms, self-service kiosks, and mobile payment options have automated the ordering process

and significantly improved service delivery speed and convenience to customers. Burger King,

through the use of technology, not only improves the quality of service to its customers but also

streamlines its processes, thereby increasing efficiency and lowering costs.

Burger King’s marketing techniques constitute the driving force of competitive

advantage. Extensive advertising campaigns with a bold and innovative twist besides several key

partnerships and sponsorships have cemented the brand’s position as a trend leader and an

industry pioneer (Alalanda & Ahmed, 2021). Burger King has implemented creative marketing

strategies which helps it engage the consumers while at the same time offering a unique offer to

differentiate the brand from other fast-food brands. Bottom line, Burger King's main focus now

is no longer just price and fast service but on multi-faceted approach including product

innovation, operational excellence and customer engagement. Through continuous adjustment to

changing market landscape and consumer demands, Burger King maintains flexibility and
5

competitive edge in a fast-food industry whilst preserving its fundamental values of quality,

taste, and affordability.

Branch-Level Operations Analysis

Branch Layout

The layout of a typical Burger King restaurant is very carefully thought out to maximize

both customer experience and operational efficiency. Patrons are welcomed by a vast and neatly

laid out dining room upon arrival to the establishment. The layout is strategically divided into

different parts for a number of dining features to be facilitated. Shall reveal as starting point is

the entrance zone will offer a cozy and welcoming environment usually with presence of

branding components and promotion materials to captivate clients (See figure 1). As the

customers advance further into the branch, they encounter the ordering counter the concourse of

the dining experience. The order counter is usually placed near the entrance to making sure easy

access for clients as they arrive.

Figure 1: “Burger King” Entrance

Source: (Montgomert, 2015)


6

Adjacent to the ordering counter, self-service kiosks are also common for the customers

who prefer a more automated ordering process. These kiosks allow customers to browse the

menu, create orders and finally transact by themselves, eliminating queues and offering

convenience. Situated behind the ordering counter, the kitchen space is deliberately placed for

efficient coordination between the front-of-house and back-of-house departments. The kitchen

layout is invisible to the customers making it carefully designed to ease the workflow and

minimize bottlenecks. Equipment and workstations are arranged ergonomically such that the

food preparation, cooking, assembly and packaging are efficient. Also, the dining area is

spacious and well-ventilated having the comfortable arrangement of seats to cater for different

sizes of groups and dining preferences (See figure 2). The tables and chairs are placed to ensure

that the seating capacity is maximized while at the same time providing enough spacing for

privacy and comfort. Also, the dining area is usually furnished with amenities like self-service

condiment stations, napkin dispensers and recycle bins to improve the overall dining experience

(See Figure 3 for the standard Burger King branch Floor Plan/Layout).

Figure 2: The Branch’s Dining Area


7

Source: (Montgomery, 2015)

Figure 3: Floor Plan for “Burger King 500 Old Greenville Hwy, Clemson, S. Carolina 29631”

Source: (James-Architect, n.d)

Customer Service Process


8

The customer service process at Burger King is a systematic procedure to guarantee

efficiency, accuracy and satisfaction in order fulfillment. This process is precisely designed to

offer a smooth and enjoyable dining encounter to customers, starting from the point they enter

the branch to the point they leave.

The customer service process starts when customers enter the branch and head to the

ordering counter or self- service kiosks and place their orders. Menu boards and digital displays

give direct and concise details about the menu items, combo meals, value deals, and special

promotions. Clients are urged to have a leisurely perusal of the menu and then decide on the dish

of their choice depending on what they like and the relevant dietary costs.

After the customers order has been placed, they proceed to the payment counter to pay

for their item. Burger King offers several payment methods which includes cash, credit/debit

cards and mobile transactions so as to meet the different needs and comfort level. The payment

process is smooth and the staff super knowledgeable to help navigate our customers through as

well as provide reasonable explanation of what is required of, how our activities operate, etc.

At the same moment, kitchen staff get order details either electronically via a smartphone

or by a printed ticket, according to the software set up in the particular branch. They immediately

start preparing the food products as specified by Burger King's standardized recipes and

procedures, adhering to the highest possible quality and safety standards. Ingredients are

handpicked, stored and handled with care to guarantee freshness and consistency in every dish.

The food is being prepared and employees connect with customers to give updates on

their orders and help them if necessary. Friendliness and care are two the most values that

customers are being served with throughout the customer interaction, where the staff is created to
9

welcome the customers kindly and to answer the inquires as well as to concerns immediately and

moreover to do it positively and as a professional.

When the food is prepared it is assembled, packed, and given to the customer at the

pickup station. The first line employees double check the order for accuracy and provide any

additional condiments or utensils as necessitated. Customers are thanked for their patronage and

are either encouraged to have their food in the spacious and comfortable dining area or they can

choose to do takeout and drive-thru service. At every phase of the guest service experience,

efficiency, precision, and hospitality are focal points at Burger King, with the unwavering goal

of exceeding customer expectations and providing unforgettable dining experiences.

Performance Evaluation of Branch Operations

Branch operations performance at Burger King can be defined and measured using a

variety of key performance indicators (KPIs) across different dimensions:One of the main

reasons is that students nowadays do not want to pursue the corporate job which is good.

 Service Speed: The target of this KPI is order processing time that is the sum of waiting

time in line, food preparation and order delivery time. A faster service speed evidences

better operational efficiency and customer satisfaction.

 Order Accuracy: This KPI determines the share of orders fulfilled correctly and without

mistakes or oversights. It mirrors how the branch manages the details, complies to

standardized procedures, and prioritizes clients' satisfaction. Greater order of accuracy

indices point to stronger quality control and executive proficiency.

 Customer Satisfaction Ratings: These ratings are gathered through different channels

such as client’s surveys, web reviews and social media interactions. They represent the

cumulative feeling of the clients towards the ambiance, food quality, service as well as
10

the cleanliness of the branch. High ratings represent positive customer experience and

loyalty whereas negative ratings indicate areas for improvement. Statista.com issued

customer satisfaction rating of Burger King 76 in 2023, which was one point higher than

previous year (ACSI: Burger King Restaurants US 2023 | Statista, 2023).

 Sales Revenue: A revenue generating KPI evaluates branch performance by the revenue

derived from its food sales. Rising sales revenue accumulatively shows business growth,

profitability, and market competitiveness.

 Employee Productivity: This KPI assesses the part of employees in carrying out their

duties, e.g. order taking, food preparation, and customer service as well as maintenance.

High productivity indicates good utilization of resources, operational excellence and

employee engagement.

Regular monitoring and evaluation of these KPIs allows Burger King benchmark and

evaluate their branch operation performance, single out shortcomings and develop relevant

interventions to improve general operations efficiency, quality and customer service.

Assessment of the Branch Operations Performance

Performance of the branch looks good across major metrics according to observations

and analysis. Great order processing rates exist with most orders delivered as scheduled.

Accuracy of orders is mostly high; however minor discrepancies may occasionally develop

during peak hours. Customer satisfaction ratings are good, by all accounts, the customers have

had good experience for the most part. Moreover, sales revenue is also stable which indicates

that the demand for Burger King’s products remains constant. Unlocking, the branch's operations

performance is in accordance with Burger King's corporate strategic priority of product


11

differentiation and customer experience. The branch consistently delivers quality food with good

service contributing to Burger King's brand loyalty and competitive advantage in the market.

Alignment with the Corporate Competitive Priority

Operations performance of the branch is in line with Burger King's corporate competitive

priority of product differentiation and customer interaction. Through sustaining high standards of

food quality, service efficiency, and cleanliness, the branch therefore strengthens Burger King's

brand image and value proposition. The focus on flame-grilled burgers, unique menu offerings,

and great customer service tallies with Burger King's strategic approach of offering value-driven

propositions to customers.

Recommendations for Performance Improvement

To further enhance operations performance, the branch could consider implementing the

following recommendations:

 Staff Training and Development: Invest in comprehensive training programs to

guarantee that staff members possess the required skills and know-how for seamless

service delivery and optimum system performance. Training should encompass skills like

customer service, food safety, menu knowledge and conflict resolution.

 Technology Integration: Look for ways technology can be used, for instance digital

ordering systems, mobile apps, as well as automatic cooking equipment, to enhance

efficiency, decrease waiting time and improve customer satisfaction. This would embrace

setting up self-service kiosks, online ordering platforms, and contactless payment

solutions among others to enable the diversity of customer preference and hence

improved convenience.
12

 Continuous Quality Improvement: Set up quality control procedures which include

regular audits to catch any issues regarding food quality, order accuracy and cleanliness.

This can be achieved by carrying out routine inspections, observing food preparation

processes, and seeking feedback from the customers to determine where to improve.

Quality assurance is the priority for Burger King which helps it to achieve consistency

and perfection in all aspects of the dining experience.

 Customer Engagement Initiatives: Build proactive tactics to interact with customers,

collect responses and meet their needs and tastes. Through listening to customers,

responding proactively and cultivating customer satisfaction and loyalty while at the

same time generating business expansion and increment in profitability is what Burger

King hopes to achieve.

 Operational Efficiency Optimization: Constantly evaluate and smooth out operational

processes to maximize efficiency, cut costs and eliminate waste. This may pertain to

streamlining kitchen workflow, standardizing the procedures, and by using data analytics

to pinpoint areas of inefficiency and suggest specific improvements. Through a culture of

continuous improvement and innovation Burger King will strengthen its competitive

position and put itself into a good competitive shape in the quick serve restaurant

industry.

Conclusion

The analysis of Burger King's operations management at the corporate and branch levels

reveals the company's strategic aims, competitive advantages, operational procedures, and

performance evaluation. At corporate level, Burger King's focus on product differentiation,

customer experience, and operational excellence underpins its success in the fast-food industry.
13

Burger King is constantly innovating, engaging in strategic marketing and using technology

investments as part of keeping a competitive advantage yet sticking to its core values. At the

branch level, Burger King's focus on layout optimization, customer service process enhancement,

and operational performance measurement achieves efficiency and customer satisfaction. Burger

King’s competitive position is enhanced through aligning branch operations with corporate

competitive priorities as well as implementing specific measures for improvement- thus making

the fast-food herd a tough nut to crack. As for the future, Burger King and follow other

suggestions made in the analysis to make the operations management better and impact on the

business performance which still makes it number one in the global fast-food industry. Resolute

to quality, innovation and customer orientations, Burger King remains in a good position in the

long run.
14

References

Alalanda, A., & Ahmed, M. (2021). Identifying And Analyzing Factors Affecting Children’s

Brand Loyalty towards a Certain Fast Food Brand–The Case of McDonalds and Burger

King in Jeddah. Palarch's Journal of Archaeology of Egypt/Egyptology, 18(16), 165-73.

https://archives.palarch.nl/index.php/jae/article/view/8172

ACSI: Burger King restaurants US 2023 | Statista. (2023, August 2). Statista.

https://www.statista.com/statistics/216692/burger-king--customer-satisfaction-in-the-us/

Erickson, S., & Rothberg, H. N. (2019). Toward a deeper understanding of competitive

knowledge assets. Electronic Journal of Knowledge Management, 17(1), pp79-88.

https://academic-publishing.org/index.php/ejkm/article/view/1132

Harrington, R. J., Ottenbacher, M. C., & Fauser, S. (2017). QSR brand value: Marketing mix

dimensions among McDonald’s, KFC, Burger King, Subway and Starbucks. International

Journal of Contemporary Hospitality Management, 29(1), 551-570.

https://www.emerald.com/insight/content/doi/10.1108/IJCHM-06-2015-0300/full/html

Johnston, R., & Clark, G. (2015). Service operations management: improving service delivery.

Pearson Education. https://books.google.com/books?

hl=en&lr=&id=CPRouMpw0GIC&oi=fnd&pg=PR9&dq=Johnston,+R.,+%26+Clark,+G.

+(2021).+Service+Operations+Management:+Improving+Service+Delivery.

+&ots=RKHLAJ03LG&sig=IDbRkGKUIbv4FPuNSBuggy4A7aM

Marco, J. (2021). Burger King Had It Their Way: Why the Single-Entity Defense Should

Properly Defeat Claims of Federal Antitrust Conspiracy Arising out of No-Poach

Agreements between Franchisors and Franchisees. Quinnipiac L. Rev., 40, 463.

https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/qlr40&section=19
15

Montgomery, A. (2015) Burger King launches new interior designs, Design Week. Available at:

https://www.designweek.co.uk/issues/12-18-october-2015/burger-king-launches-new-

interior-designs/ (Accessed: 10 February 2024).

Musonera, E. (2019). Merger of Burger King and Tim Hortons: analysis of marketing strategies

in the quick service restaurants. International Journal of Strategic Business Alliances, 6(4),

267-283. https://www.inderscienceonline.com/doi/abs/10.1504/IJSBA.2019.102650

Rubenstein, K. (2017). The Once and Future Burger King. International Journal of Business and

Economics, 16(2), 205-212.

https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.16-2/pdf/vol_16-2-13.pdf

Slack, N., Chambers, S., & Johnston, R. (2019). Operations management. Pearson education.

https://books.google.com/books?

hl=en&lr=&id=ZhLBcfUXaNwC&oi=fnd&pg=PA1&dq=Slack,+N.,+Brandon-Jones,+A.,+

%26+Johnston,+R.+(2019).+Operations+management.

+Pearson+Education+Limited.&ots=5koYzIJfpA&sig=OCdB33M_ul4orjWV6IE1gYvbNt8

Teoh, K. B., Lew, T. Y., Gupta, S., Ang, J. W., Ang, H. H., Bong, A. L. L., ... & Mohan, N.

(2023). A Study of Customers’ Satisfaction at Burger King in Asian Countries. Journal of

The Community Development in Asia, 6(3), 96-108.

http://ejournal.aibpmjournals.com/index.php/JCDA/article/view/2545

Appendix

Figure 4: Customer Satisfaction Scores of Burger king


16

(ACSI: Burger King Restaurants US 2023 | Statista, 2023)

You might also like