Burger King

BURGER KING PRESENTED BY :- INTRODUCTION  Burger King's first restaurant, originally called Insta Burger King, was opened on December 4, 1954 in a suburb of Miami, Florida, USA by James McLamore and David Edgerton, who were both alumni of the Cornell University School of Hotel Administration. McLamore had visited the hamburger stand belonging to Dick and Mac McDonald in San Bernardino, California; being able to sense potential in their innovative assembly line-based production system, he decided to create a version of his own.  In 1967, Burger King was bought by Pillsbury, which was bought by Grand Metropolitan PLC of Britain in 1988. INTRODUCTION CONTD…  Second largest fast food hamburger chain in the world.  Fourth largest Fast Food Restaurant Chain.  BURGER KING® brand launched the “HAVE IT YOUR WAY®” marketing campaign in 1974.  Budapest is home to the largest BURGER KING® restaurant worldwide.  On May 18, 2006, BK became a publicly traded company listed on the New York Stock Exchange under the symbol "BKC".  Largest Selling Product, The Whopper. EVOLUTION OF LOGOS  1957 – 1968 1969 – 1994 1994 – 1999 1999 – present MILESTONES  1954: James McLamore and David Edgerton establish Burger King Corporation.  1957: The Whopper is launched.  1958: BK releases its first TV advertisement.  1959: The company begins to expand through franchising.  1967: Burger King is sold to Pillsbury.  1977: Donald N. Smith is hired to restructure the firm's franchise system. MILESTONES CONTD…  1982: Burger King claims its burgers taste better than its competitor's [McDonald's and Wendy's] fried burgers.  1989: Grand Metropolitan plc acquires Pillsbury.  1997: The firm launches a $70 million French fry advertising campaign; Grand Metropolitan merges with Guinness to form Diego plc.  2002: A group of investors led by Texas Pacific Group acquire Burger King.  2006: BKC, with the same stock symbol, goes public in an IPO. MISSION  "We will prepare and sell quick service food to fulfill our guest's needs more accurately, quickly, courteously, and in a cleaner environment than our competitors. We will conduct all our business affairs ethically, and with the best employees in the midsouth. We will continue to grow profitably and responsibly, and provide career advancement opportunities for every willing member of our organization." VISION  They proudly serve the best burgers in the business, plus a variety of real, authentic foods - all freshly prepared - just the way you want it! BURGER KING ® Corporation operates more than 11,000 restaurants in all 50 states and in 60 countries around the world. 90% of the BURGER KING ® restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. STRATEGIES  Opened prototype for future restaurants in Reno, NV in April, ’99. Includes new color scheme (blue instead of tan & brick), different style interior, open kitchen to show off flame-broiled cooking, and added “virtual fun centers” to play areas that provides electronic interactive games. STRATEGIES CONTD…  Menu would remain the same, but new cooking units would provide opportunity to add new items, including thicker patties.  Heated cabinets would replace heat lamps, microwaves, and holding chutes.  Company expects that stores would boost average unit sales to $1.6 million (annual) from the current $1.15 million (and above McDonald’s current of $1.5 million) COMPETITORS      MC DONALDS WENDY SONIC SUB – WAY TACO BELL INTERBRAND BRAND VALUE COMPARISON COMPARISON CHART Main Food items McDonalds -Big Mac Happy Meals -Breakfast Menu -Whopper -Whopper Jr. -Breakfast cinni Mini Baked Potato Chili -first to have salad options -Breakfast all day Slushes and drinks Selling message -I’m loving it -fun Specialties Other -Wi-fi -Playground -Charities include Ronald McDonald House Burger King Wendy's -Have it your way -Playground -quality -Different sides such as bake potato or Chili -Slushes -Car hops -charities include Dave Thomas foundation for adoption Sonic -America’s Drive in MARKET SHARE 2002 vs 2007 MKT. SHARE McDonald’s 7.8% Burger King 3.6% 2002 2007 McDonald’s MKT. SHARE 7.3% Burger King 3.0% Wendy’s Subway Taco Bell 2.4% 1.9% 1.9% Wendy’s Pizza Hut Taco Bell 2.1% 2.1% 2.2% SIX SIGMA (6σ)      BILLING. BURGER SIZE. TIME SPAN. SAME TASTE. CONSISITENTLY SHARPENING UP THE SKILLS OF ITS EMPLOYEES. QUALITY ASPECTS  Burger King's chicken supplier – TYSON.  Uses CAK (Controlled Atmosphere Killing) In the preparation of its poultry products.  Uses Crate free pigs for its pork products.  It is the member of the Council of better business bureaus.  Has got certification to EFSIS OR BRC OPERATIONS  During lunch hour, demand increases from 40 to 800 hamburgers/hour.  Limited in ability to used inventory .  Facilities are designed for flexible capacity.  During off peak times drive through staffed by one worker . OPERATIONS CONTD…  During lunch hour drive through staffed by up to five workers who divide up the duties  Second window are used for customer with special orders  Average transaction time reduces from 45 to 30 seconds  Sales during peak periods increases by 50% BK Restaurant Operation Mgmt.  The key Design parameters of burger King are: PRODUCT PROCESS TECHNOLOGY FACILITY CONTD…  The key planning tasks of Burger King are: SUPPLY DEMAND CAPACITY / WORKLOAD CONTD…  The key control processes of Burger King are: PRODUCTION CONTROL QUALITY CONTROL PROCESS CONTROL CONTD…  The key Improvement processes of Burger King are: QUALITY IMPROVEMENT PRODUCTIVITY IMPROVEMENT SYSTEMS IMPROVEMENT FLOW DIAGRAM FINISHED BURGERS RAW BUNS BEEF MATE BUNS STEAMER BURGER ASSEMBLY MICRO WAVE CHEESE CONDIMENTS TOMATOES ORDER DELIVERY SUCCESS  BK-50 restaurant is 35% smaller and costs 27% less to build, but can handle 40% more sales with less labor  Long Term Image / Goodwill  Menu Variety  Customer Loyalty FAILURES  Burger King unable to gain ground in 90’s: 1993 total sales were $23.6 billion for McDonald’s versus $6.7 billion for Burger King (roughly 28% of McDonald’s).  1998 total sales were $36 billion for McDonald’s versus $10.3 billion for Burger King (still roughly 28% of McDonald’s)  Burger King also unable to open as many restaurants (2,700 restaurants in the period between ’93 and ’98 as opposed to the 10,600 new restaurants opened by McDonald’s during the same period) THREATS  Fast-food industry as a whole is losing market share to other restaurants, including the “fast casual” restaurants, which offer higher quality food without table service.  Currently, Subway has to be considered the biggest mover in the fast-food industry. They are the fastest growing (now with more restaurants than McDonald’s), and with great increases in same store sales over the past couple of years. MENU LOCATIONS LOCATIONS (CURRENTLY OPERATING) CONTD…  UNITED STATES (San Juan, Puerto Rico)  CANADA  EUROPE (MADRID AND SPAIN)  EAST ASIA (JAPAN, TAIWAN, SINGAPORE, KOREA)  CENTRAL & S. AMERICA (MEXICO), ETC. YET TO COME      EASTERN EUROPE BRAZIL MIDDLE EAST AFRICA ASIA (MACAO) RECOMMENDATIONS  Initiation of the Central Control.  Creation of Brand Character.  Try to provide low calorie food.  Expansion of its business. THANK YOU