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Burger Restaurant Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Are you about starting a burger restaurant? If YES, here’s a complete sample burger restaurant business plan template & feasibility report you can use for FREE to get started .

Okay, so we have considered all the requirements for starting a burger restaurant. We have analyzed and drafted a sample burger restaurant marketing plan backed up by actionable guerrilla marketing ideas for burger restaurants. So let’s proceed to the business planning section.

Why Start a Burger Restaurant Business?

Generally, burger restaurants are chain and franchised restaurants that mainly sell burgers but may also sell alcoholic and other beverages. Burger restaurant formats range from fast-food to full-service. Right from the beginning, burgers have been a staple American snack.

Burger restaurants don’t need to make anything other than really good burgers and really good fries. They are quite easy to make and don’t take much time to get ready. All you need is meat, buns, and fresh ingredients and you can make a wonderful burger in minutes, while other restaurants may need several minutes to prepare and serve their dishes.

Within the years, burger restaurants have improved. The days of simple cheeseburger with lettuce, tomato, and ketchup has long gone.

The industry is currently relishing an era of gourmet burgers and endless flavour profiles. So, just because you’re running a burger restaurant doesn’t mean that your food should be plain or simple. Most burger places today offer special sauces, gourmet toppings, and unexpected combinations.

This is indeed a business you should consider if you’re looking to venture into the food industry. With a burger business, you don’t have to worry about limiting your market to only meat lovers as there are many excellent veggie patties hitting menus everywhere that will please any veggie-lover out there.

In this modern age, it is very common to see lamb burgers, pork burgers, and even bison burgers. People who don’t eat beef can try a juicy chicken burger; if you’re pescatarian, you’ll love a salmon burger. Irrespective of your dietary restriction, there is a burger that comfortably suits your appeal. Read on as we put together a sample business plan for a burger restaurant.

A Sample Burger Restaurant Business Plan Template

1. industry overview.

The burger industry of this modern era is nothing near the industry some two decades back. Hamburger franchises have spread across the united states and have continued to explore innovative ways to turn their customers into loyal burger-fanatics.

But when it comes to a good hamburger, Americans are known to be very careful and selective. A report has it that 75% of burger-lovers rank the quality of the meat as the first or second most important attribute to their burger. Second in line were toppings, ranked either first or second place by 42% of consumers.

Although the price and affordability of the burger is considered, high-quality ingredients are still very important in producing a successful burger business. Americans to a very large extent live on burgers and are known to go for the best.

Statistics show that nearly 80% of consumers eat at fast food restaurants at least once a month, and 34% of kids in the US eat fast food every day – and that’s not including the massive number of people eating at fast casual restaurants.

Burger in the United States is now seen a food that represents patriotism and festivity. They are always present at large family gatherings, particularly Fourth of July and Memorial Day celebrations. Given the timelessness of this All-American classic, it’s no wonder that the hamburger stands as one of the few “recession-proof” foods in the United States.

But note that with America’s fight against obesity, e-coli concerns, mad cow disease, and the recent go-green campaign, the burger industry has its own share of challenges and threats. Yet statistics has it that Americans tastes are becoming more diverse and varied.

Burger has always remained top in the minds of Americans, and the reason for this longevity is most times attributed to its widespread appeal. Burgers are affordable, portable, and customizable and they can be served gourmet-style or as a rustic yet classic go-to food.

2. Executive Summary

Star Burger will offer the people of San Diego an exciting menu of burgers, sandwiches, salads, desserts and coffee beverages. We plan to make use of a system that is entirely new to the industry to provide excellent services and products in a convenient and time-efficient way.

Star Burger will provide its customers with the opportunity to drive up and place their order of well-prepared burgers and sandwiches of different flavours and toppings. We also plan to offer our clients well blended lemonade, coffees, teas, and other custom drinks to go down with our unique burger and sandwiches. We will also offer soft drinks, fresh-baked pastries and other confections.

We at Star Burger plan to reach our targeted audience by deploying Drive-through facilities and Mobile Restaurants to satisfy the various urge of the people of San Diego, California. We believe that these facilities will be designed to manage the two-sided traffic and dispense customer-designed, specially ordered burgers and sandwiches in less time than when they visit other businesses.

Star Burger hopes to provide the people of San Diego with quality products and an extensive menu of delicious items, to make sure we get our customers’ loyalty, as well as good publicity coverage and media support.

We decided to become a Drive-through cafe between the mountains, attracting several million dollars through an initial public or private offering that would allow Star Burger to open fifteen to twenty facilities per year in all metropolitan communities in the North, Midwest, and South.

Star Burger will be registered as a Limited Liability Corporation, but all membership shares for now will be owned by Sampson and Nicky Shepard, and we also plan to leverage a portion of the shares to raise capital. Our plan at Star Burger is to sell 100 membership units to family members, friends, and angel investors.

Each membership unit at Star Burger is priced at $3,087 with a minimum of five units per membership certificate, or a minimum investment of $61,740 per investor. We have plans to ensure that irrespective of the amount of share units bought, Sampson and Nicky Shepard will maintain ownership of no less than 51% of Star Burger.

3. Our Products and Services

Star Burger is a San Diego burger and assorted sandwich restaurant serving during lunch time hour as well as early evening. We would operate weekdays from 9-7 pm. Our bread is chosen for several reasons: it is unique, healthy, and versatile.

We have prepared a menu that will give each customer the choice to enjoy our burgers and never get tired. We will attract 35% new customers a year after the second year and will reach profitability by the end of year two. Below are the products we plan to offer to our customers:

• Classic Gourmet Burgers: Cheese, Lettuce, Tomato, and Onion
• BBQ Bacon Burgers: BBQ Sauce, Bacon, Cheese, and Grilled or Fried Onions
• California Burgers: All the Classic Toppings and Avocado
• Hawaiian-Inspired Burgers: Lettuce, Tomato, Pineapple, and Sautéed Mushrooms
• Savoury Veggie Burgers: Veggie Patty, Lettuce, Tomato, Grilled Onions, & Sautéed Mushrooms
• Super Spicy Burgers: Spicy Beef, Spicy Mayo, Jalapeños, and Your Choice of Cheese
• Salmon Burgers
• Sandwiches with filling options: tofu pate, falafel, hummus, baba ganouj, tabouli, turkey, ham, chicken, pesto, assorted vegetables and assorted cheeses Drinks: lemonade, coffees, blended teas, and soft drinks

4. Our Mission and Vision Statement

• Star Burger’s vision is to establish a restaurant that will provide unique and assorted services to the people of San Diego and the State of California.
• Our mission at Star Burger is to provide the finest, healthiest and best tasting burgers and sandwiches in San Diego. Star Burger will offer the finest customer service; no customer will leave dissatisfied.

Our Business Structure

We at Star Burger plan to establish a business structure that is transparent and simple, since most of our personnel will be involved in production and there will be a relatively low headcount in management. We plan to establish three functioning units within Star Burger: Production, Sales and Marketing, and General and Administrative.

Star Burger Production unit will involve our Customer Service Specialists, who will be taking care of our Drive-through and Mobile Restaurants and attending to the needs of our customers. Our Sales and Marketing will take care of the promotion and scheduling of the Mobile Restaurant, as well as the promotion of the Drive-through and the Community Contribution program.

General and Administrative will take care of the facilities, equipment, inventory, payroll, and other basic, operational processes. Due to our goal to establish a unique burger restaurant in the United States, we took our time to lay out the various roles of our employees and what we need, and they include;

Chief Executive Officer

• Chief operating officer
• Chief financial officer
• Chief information officer
• Director of marketing
• District and facilities managers

Customer Service Specialists

5. Job Roles and Responsibilities

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Tasked with fixing prices and signing business deals
• Tasked with providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Tasked with signing checks and documents on behalf of Star Burger
• Evaluates the success of the organization

Chief Operating officer

• Tasked with overseeing the smooth running of the business
• Part of the team that determines the quantity of products that are to be produced daily
• Make lists and budget for all supplies
• Oversee the entire business process
• Map out strategy that will lead to efficiency amongst workers
• Tasked with training, evaluation and assessment of the workforce
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the bakery meets the expected safety and health standard at all times.

Chief Financial officer

• Tasked with preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Tasked with financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Tasked with developing and managing financial systems and policies
• Tasked with administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Chief Information officer

• Provide technological guidance within an organization.
• Supervise information system and communications network.
• Develop and implement a customer service platform to serve the organization in every aspect.
• Design, establish, and maintain a network infrastructure for local and wide area connectivity and remote access.
• Participate in vendor contract negotiations for all new computer equipment and software purchased for the corporation.
• Create a cost-benefit analysis as well as supporting a detailed definition of data requirements and departmental workflows.
• Oversee Internet and computer operations.
• Takes care of the day-to-day operations of the information technology department including directing staff, who support administrative computing, networking, user services, telecommunications and other information technology functions.
• Propose hardware/software solutions to accomplish Star Burger’s business objectives.

Director of sales and marketing

• Takes care of external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyse the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Develops, executes and evaluates new plans for increasing sales
• Represents the Star Burger in strategic meetings
• Helps increase sales and growth for Star Burger

District and facilities manager

• Monitor the P&L reports for each store and develop effective ways to fill in any gaps between actual performance and Star Burger projections
• Prioritize store performance issues to make certain that the issues most directly affecting profitability are addressed first
• Immediately address any lapses in compliance with corporate policies or local, state and federal laws
• Act as a coach to the store managers and as a resource to each store employee to help inspire success
• Ensures that all contacts with customer (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the Star Burger ’s products
• Takes care of administrative duties assigned by the store manager in an effective and timely manner
• Consistently stays abreast of any new information on Star Burger, promotional campaigns etc. to make sure accurate and helpful information is supplied to customers when they make enquiries.
• Tasked with cleaning the stand at all times
• Makes sure that toiletries and supplies don’t run out of stock
• Any other duty as assigned by the CEO.

6. SWOT Analysis

Our goal at Star Burger is to create a unique restaurant that sees to the need of the people. We also decided to get our SWOT Analysis, which brings to light our strengths and threats in the industry. We at Star Burger hired a business consultant to do this analysis for us because we believe an external firm will not compromise the information and chances of Star Burger in the Industry.

We were able to note our business strengths, weakness, opportunities and also the threats that we are likely going to be exposed to in the industry and our business location. Clearly summarized below is the result of our SWOT Analysis;

Our detailed SWOT analysis has identified three keys that will be instrumental to our success at Star Burger. First and foremost, our design and implementation of strict financial controls, which will be very crucial, since the restaurant industry is quite competitive.

Secondly, we will be offering high-quality fresh and healthy food to clearly stand out from our competition in San Diego. We have already put in place effective, targeted marketing campaigns to support the opening of the restaurant.

Our weakness according to the SWOT analysis will be the time it will take the people of San Diego to know where we are and what we offer.

People go about their daily activities and most times tend not to discover the new business in town unless the business establishes a direct marketing Plan. We at Star Burger plan to start advertising even before we open up our shops, at least to make sure that our brand is known.

• Opportunities

Indeed the opportunities available to Star Burger are limitless. The food and restaurant industry is a recession-proof industry that will always keep growing because people will always want food as it helps keep us alive and sane. People may no always have the time to cook due to their schedule, and will always decide to grab a burger and a cup of lemonade or coffee on their way to work.

Our threat at Star Burger is the fact that we are competing with already established restaurants in San Diego, California, and also there are other entrepreneurs who are likely going to launch similar business within the location of our business.

But with our unique workforce and plans, we have all it takes to dominate the industry and take up enough market share.

7. MARKET ANALYSIS

• Market Trend

Burgers in this new age are indulgent and upscale with a variety of toppings, including goat cheese, truffle oil, foie gras, aolis, marmalades, sautéed spinach, havarti, candied bacon and other healthy and exotic toppings. Burger blends are all the rage extending beyond traditional chuck, to include short rib, brisket, oxtail, rib eye, flank and much more.

A report has it that 2018 is the year for everything from giant, premium burgers to sliders and mini-portions, from bold Mexican and Asian flavours to Korean, Greek, Cajun, and more. International flavours are hot and growing, and the burger is the perfect vehicle to test drive and transport many flavours.

Report also has it that restaurants are beefing up menu language to highlight protein grams and adding protein topper boosters such as pastrami, bacon and pepperoni, as well as including lettuce wrapped options to increase the protein to carb ratio.

In line with the trend for more protein, eggs are topping off many burgers for 2018. Also the largest age segment of the American population is driving burger trends now and certainly into the future with their desire for global flavours, snack-sized portions (sliders), and healthy options and toppings.

From emphasizing and bolstering “protein” on menus, consumer geared messaging is also focused on other health oriented topics and features, including grass fed, organic, natural, gluten free, naked (no bun), and more.

We at Star Burger plan to always work with customers on additional blends, which can include anything. Burger epitomizes the perfect vehicle to adapt to new trends and international flavours. As a business’s that wants to become a market leader in the United States, we will focus our energy at working with customers to develop new blends and visions

8. Our Target Market

Our plan at Star Burger is to focus on two different market audiences: Commuters and Captive Consumers. We have taken our time to strategically design our business to access both of these markets. Commuters are defined as any one or more individuals in a motorized vehicle traveling from point “A” to point “B.”

Star Burger’s greatest concentration will be on commuters heading to or from work, or those out on their lunch break. While our Captive Consumers market audience would include those who are tethered to a campus environment, or in a restricted entry environment that does not give the right to free movement.

This will include high school and college campuses, where there is limited time between classes, and corporate campuses where the same time constraints are involved like special events–such as carnivals, fairs or festivals–where there is an admission price to enter the gate, but exiting would mean another admission fee, or where refreshments are an integral part of the festivities.

Our target market at Star Burger will also be the mobile individual who has more money than time, and excellent taste in choice of food, but no time to prepare them.

Our competitive advantage

Our competitions at Star Burger exist in many forms. They include fast food that takes the form of the traditional restaurants like McDonald’s, Burger King, and Wendy’s, as well as healthier alternatives like Subway . There are also three different delis located in San Diego that serve deli style sandwiches. These delis serve very basic, standard deli fare; generally sliced deli meats.

But we at Star Burger know that with the unique offerings we bring, we can dominate the market especially with a business that can provide a substantial value proposition where a customer does not have to find a parking place, exit the vehicle, stand in line to order, wait for the burger to be produced, pay a premium price for average product, find a place to sit, clean up the previous customer’s mess, then enjoy their lemonade or coffee… That’s if they have much time to spend.

Star Burger business concept is to establish a restaurant that gives a customer the opportunity to drive up, place the order, receive a high quality product at a competitive price, and drive away, without spending much time and energy. We at Star Burger plan to provide an important community value for patronizing our business.

For every purchase a customer makes from us, we plan to donate up to 6% of the sale to the local charity selected by the customer.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Star Burger is a new restaurant with a unique plan to achieve success and become an industry leader. That is why we will be providing our products in the most convenient and efficient way available–either at one of our two-sided Drive-through shops, or at one of our Mobile Restaurant.

This will give us an advantage over our competitors because customers won’t need to find a parking place, wait in a long line, jockey for a seat, and clean up the mess left by a previous patron. Our goal at Star Burger is to provide enough income to be able to run our business and still move on with our charity aspect. We plan to generate income by offering the following products to the people of San Diego:

10. Sales Forecast

Star Burger will open its doors for business by having two Drive-through locations in operation. We plan to open our first location in the second month of this plan and be fully operational beginning on the 1st day of November, and our second Drive-through will open six months later.

We will also add two more Drive-through locations in our second year and, and an additional seven Drive-through facilities in our third year. We at Star Burger plan to deploy one mobile unit in the fourth quarter of the first fiscal year. Deploy a second and a third mobile unit within our second fiscal year.

Using our detailed research and analysis, we expect to boost revenue from the commerce portion of our website, where it will sell Star Burger t-shirts, sweatshirts, insulated lemonade mugs, pre-packaged coffee beans, and other premium items. Although we are not expecting this to be a significant profit centre immediately, but it is a major part of the marketing plan.

We at Star Burger estimate that our total first year sales should reach $399,678. Our second year will see sales increase to $1,085,430. The third year, with the addition of such a significant number of outlets, we will see sales increase to $3,765,215.

• Marketing Strategy and Sales Strategy

With so many burger franchises and independent restaurants already open, marketing is one of the most important aspects of opening a burger restaurant. We at Star Burger understand this, which is why we will be placing our Drive-through stands in business locations of very high visibility and great ease of access.

Our Restaurants and stands will be located on high traffic commuter routes and close to shopping facilities so as to attract customers going to or from work, or while they are out for lunch, or on a shopping expedition. Our Drive-through will be very simple, astounding, and eye-catching.

We also plan to implement a low cost advertising/promotion campaign which could involve drive-time radio, but not much more. Star Burger will also establish good business relationships with schools, charities and corporations to provide significant free publicity because of our community support program.

We believe that if we give out charitable contributions to these institutions, they will get the word out to their students/faculty/employees/partners about Star Burger.

We also plan to leverage the use of word of mouth advertising method, which is the greatest advertising program any business organisation can use. The media in San Diego will be more than willing to promote the charitable parts of Star Burger and give us the opportunity for more exposure each moment Star Burger contributes to charity.

The internet is a powerful marketing tool we at Star Burger cannot afford to overlook. We plan to create an optimized website to capture local searches and also establish a strong social media presence to easily boost sales. When we first open, we plan to create a local press release, run grand opening specials to draw in potential customers, and even invite local food bloggers to come try a free meal in exchange for a review.

11. Publicity and Advertising Strategy

Our plan at Star Burger is to gather enough brand awareness to leverage the product line into other regions and gain inquiries from potential inventors. To achieve this goal, we plan to do the following;

• Star Burger will spend $1,200 per month on public relations services for the next year. We intended to build awareness and carry out product information insertions, reviews, etc. We believe that a school fundraising program or our other charity programs will generate a fair amount of publicity on its own and will, perhaps, minimize–or even eliminate–the need for a publicist.
• Star Burger will also spend $800 per month concentrating on drive time Radio advertising. We plan to experiment with different stations, keeping careful track of results. As with the school fundraising program, we expect the stand and signage to be a substantial portion of our advertising.
• List our business on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

12. Our Pricing Strategy

We haven’t gone back on our promise to leave no stone unturned in our quest to achieve our business goal. We at Star Burger have put plans in place to boost our income, which may include posting specials on high-profit items at the drive-up window.

We also plan to give out free burger coupons to those who have purchased a certain number of burgers or something similar.

Our management have been able to develop window sales techniques such as our sellers asking if the customer would like a new flavour or toppings with any drink of their choice. We believe that our pricing will be comparable to the competition in the market, but with the value-added feature of immediate, drive-through service and convenience.

• Payment Options

Our payment options at Star Burger will be all inclusive and acceptable because we understand that different people prefer different payment options. Here are the payment options that we will make available to our clients;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

We have also chosen banking platforms that will help us achieve our plans with little or no issues. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our service.

13. Startup Expenditure (Budget)

First and foremost, many factors in our modern America will decide the amount we will need to successfully launch Star Burger. These factors may include our location, the size of the business we want to start i.e. the number of outlets/stands et al, and of course the state of the economy as at when we intend starting the business.

We at Star Burger have conducted an extensive research and have come up with how we intend to spend our startup capital, and they include;

• The Fee for registering the business in the United States – $750
• The budget for legal fees, insurance, permits and license – $30, 000
• The amount needed to build a two standard shop and renovation of the facility inclusive – $60,000
• The Cost for the purchase of kitchen / production equipment and gadgets (industrial ovens, fridges, smoke detector, TVs, microwave oven, mugs, Foils, Sound System, tables and chairs et al) – $25,000
• The Cost for supply of bread and other inventories for a month – $120,000
• The Cost of Launching a Website – $600
• The cost opening party – $5,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $100,000

Going by the report from our research and feasibility studies, we will need an average of $350,000 to start Star Burger.

• Generating Startup Capital for Star Burger

Star Burger will be established as a Limited Liability Company with Sampson and Nicky Shepard as its owners. This couple has a combined 25 years’ experience in the food and burger industry, and they hope to build a successful business. We hope to raise our startup fund through the following ways;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Generate fund from Angel Investors

Note : We have been able to raise $200,000 from the personal savings of our founders and we are almost at the verge of completing the money needed as capital from a reliable Angel investor with an eye for startup businesses.

14. Sustainability and Expansion Strategy

We at Star Burger believe that as time and seasons change, we will be offering products that will enhance sales and satisfy our customers’ desires. We also plan that during summer months, we will subsidize frozen drinks like lemonade, as well as soft drinks, and other cold beverages.

We at Star Burger have taken our time to research our local regulatory agencies and what licenses we need. These requirements we believe will vary by location, but we have a strong relationship through Mr. Sampson Shepard with the state chamber of commerce and health department and we plan to stay on the right side of the law.

We have put plans in place to get our business license, which legally allows us to make sales and collect sales tax, and a food handling certification, which we have acquired. We have also obtained the needed permits for construction and we are also expecting an inspection from the health department.

We at Star Burger also understand the importance of insurance for our business. We have contracted an insurance lawyer to help us get property insurance, which will help protect our building and surrounding property, providing coverage for fire, hail, or accidental damage.

We expect this type of policy to cover expensive commercial kitchen equipment , so we will be able to replace pieces damaged under covered circumstances.

We also plan to obtain liability insurance, as it covers legal fees and any damages that may be awarded as a result of a legal action against our business from any accidents or injuries. We will also offer worker’s compensation insurance to provide peace of mind to both the management and our employees, as it helps cover medical bills that may arise from employee injuries.

Our Drive-through stands will be manufactured by Lintel Construction. Our Mobile Restaurant and equipment will be supplied by Guarantee Savage.  Star Burger computer equipment and Internet connectivity will be provided by Nicklaus Communications.

Checklist/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the startup capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging and Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress

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• How Much Does It Cost to Start a Burger Restaurant?

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Burger King’s Business Model

Burger King runs a heavily franchised business model, where most restaurants are franchising operations, compared to the company-owned restaurants. For instance, in 2020, most of the revenue came from franchising operations.

Table of Contents

Value Proposition:

• Flame-Grilled Taste: Burger King’s signature flame-grilled cooking method sets it apart, offering a unique and savory taste that appeals to customers who enjoy the smoky flavor of grilled burgers.
• Customization: Burger King’s “Have It Your Way” slogan emphasizes customization. Customers can often personalize their orders by choosing ingredients, toppings, and condiments to suit their preferences.
• Affordability: Burger King positions itself as a fast-food restaurant that offers value for money. It often promotes value menus and deals to attract budget-conscious customers.

Customer Segments:

• Fast Food Lovers: Burger King primarily targets consumers who enjoy fast-food dining experiences and are looking for quick, convenient, and satisfying meals.
• Families: It also caters to families seeking affordable meal options that can accommodate both adult and child preferences.
• Young Adults: Burger King’s marketing often appeals to young adults and millennials who are looking for customizable, on-the-go food options.

Distribution Strategy:

• Franchising: As you mentioned, Burger King heavily relies on a franchising business model . The majority of its restaurants are owned and operated by franchisees. This strategy allows Burger King to expand rapidly while reducing the burden of owning and operating individual locations.
• Company-Owned Restaurants: While franchising is dominant, Burger King maintains some company-owned restaurants, often serving as flagship or high-profile locations.
• Global Presence: Burger King’s distribution strategy includes a global presence with restaurants in various countries worldwide. It adapts its menu to suit local tastes in different regions.

Marketing Strategy:

• Iconic Menu Items: Burger King markets its iconic menu items, such as the Whopper, as core offerings. Advertising campaigns often focus on the unique taste and features of these items.
• Advertising and Promotion: The brand engages in advertising and promotional efforts, including television commercials, digital marketing , and social media campaigns, to reach a broad audience.
• Competitive Pricing: Burger King occasionally promotes competitive pricing strategies, offering discounts and deals to attract cost -conscious consumers.
• Innovation: The brand invests in menu innovation by introducing new products and limited-time offerings. This keeps the menu fresh and entices customers to try new items.
• Social Responsibility: Burger King may incorporate social responsibility initiatives into its marketing strategy , addressing issues like sustainability, animal welfare, and community engagement.
• Digital Presence: Like many fast-food chains, Burger King maintains a strong digital presence, offering mobile apps for convenient ordering, loyalty programs, and digital coupons.

Key Highlights

• Franchised Business Model : Burger King heavily relies on franchising operations, with the majority of its revenue coming from franchisees.
• Flame-Grilled Taste : Unique smoky flavor from the signature flame-grilled cooking method.
• Customization : Emphasizes “Have It Your Way” for personalized orders.
• Affordability : Offers value for money with value menus and deals.
• Fast Food Lovers : Targets those seeking quick and convenient fast-food options.
• Families : Offers affordable meal options for both adults and children.
• Young Adults : Appeals to millennials with customizable on-the-go food.
• Franchising : Majority of restaurants are owned and operated by franchisees.
• Company-Owned Restaurants : Maintains company-owned locations for flagship and high-profile outlets.
• Global Presence : Expands worldwide, adapting menus to suit local tastes.
• Iconic Menu Items : Focuses on core offerings like the Whopper in advertising campaigns.
• Advertising and Promotion : Engages in various marketing channels, including TV, digital , and social media.
• Competitive Pricing : Offers discounts and deals to attract cost -conscious consumers.
• Innovation : Introduces new products and limited-time offerings to keep the menu fresh.
• Social Responsibility : May incorporate initiatives related to sustainability, animal welfare, and community engagement.
• Digital Presence : Offers mobile apps, loyalty programs, and digital coupons for convenience in ordering.

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Burger king plots its strategy to regain its momentum.

This summer, Burger King launched its upgraded Ch’King chicken sandwich, which quickly sold twice as many as its previous version. “The great-tasting chicken sandwich continues to show healthy volumes in restaurants around the country,” Jose Cil, CEO of Burger King parent company Restaurant Brands International, said on Friday.

That didn’t keep Cil from expressing disappointment in Burger King’s results. The Miami-based chain’s same-store sales rose 13% last quarter, or about 2% on a two-year basis. While that was a recovery from pre-pandemic levels, it remains low in context: Rival McDonald’s, for instance, boasted 15% two-year results.

In fact, the result continued a trend between two of the Big Three burger chains: McDonald’s has been outpacing its rival for nearly six years now, despite having twice the average unit volumes. Burger King’s recent results—it has also closed about 200 net units over the past year—has left it looking up at the third of those three, Wendy’s.

“We’re not performing at the level that we expect ourselves or aspire to,” Cil said. “We understand our biggest areas for breakthrough opportunity. Our underlying issue has really been focus and pace. We haven’t put enough focus on the few priorities that will have the biggest impact. And we haven’t moved fast enough on these priorities to accelerate the business performance to the level we know we’re capable of.”

It was a typically honest assessment from Cil, who had previously made one for RBI’s Tim Hortons brand, which had struggled in 2019 and was at the outset of a turnaround when the pandemic hit. Yet Cil grew up with Burger King, having started with the brand more than 20 years ago and having led it before he took over the top job at RBI. “I know the Burger King business well,” he said. “I know what we’re capable of. Our franchisees, they know what we’re capable of.”

One thing Cil wants is menu development similar to the Ch’King, which he said is a “new platform” that could be a “driver of sustainable growth for year to come.”

Cil doesn’t believe the company should abandon value, either—something that Burger King had emphasized considerably in recent years. He noted the $1 Your Way menu that debuted earlier this year and other value platforms.

“We’re at our best when we have a balanced approach with a strong focus on core with premium items that drive check, but having a balanced approach on value,” he said.

Another strategy Cil discussed was remodels and, specifically, speeding them. “We’re dedicated to working together to accelerate our image transformation into the Burger King system over the next few years,” Cil said.

“We’re moving at a good pace,” he added. “I think we’ve made some good progress on that. But I think we can go faster.” Cil said the company is working with operators on remodels that provide a higher return on investment, such as restaurants with double drive-thrus.

The company also believes that operations need to improve. Cil said the company invested in field teams to work with the franchisees who operate the chain’s 7,095 locations on training and execution.

Burger King is also “committed to becoming an industry leader in fully integrating digital into the restaurant and online ordering experience,” Cil said, noting that Tim Hortons is getting a benefit from its digital strategies. The company recently rolled out its loyalty program, called “Royal Perks.”

Cil also mentioned marketing, noting that it “can translate our global advertising creativity into even greater brand loyalty that drives long-term traffic and sales momentum in our home market.”

“We’ve been a bit mixed in terms of our execution on-brand communications,” Cil said. “We spend a lot of time on price-driven communication, and I think we have a lot more work to do on cut-through brand and high-quality messaging around the quality of our products.”

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Burger King: Developing a Marketing Mix for Growth

By: Fabrizio Di Muro

In 2015, Burger King, one of America's oldest fast-food chains, continues to face fierce competition from McDonald's, Wendy's and the emerging fast-casual restaurant chains. As a result, Burger King…

• Length: 12 page(s)
• Publication Date: Dec 11, 2015
• Discipline: International Business
• Product #: W15569-PDF-ENG

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In 2015, Burger King, one of America's oldest fast-food chains, continues to face fierce competition from McDonald's, Wendy's and the emerging fast-casual restaurant chains. As a result, Burger King needs to develop a marketing mix that will distance it from its competitors and narrow the gap with McDonald's, the industry leader. The marketing mix will also influence Burger King's allocation of resources between domestic and international markets.

Fabrizio Di Muro is affiliated with University of Winnipeg.

Learning Objectives

The case is intentionally conceptual in nature to provide insight into the fast-food industry in general and the fast-food giant Burger King in particular. This case is appropriate for undergraduate or MBA courses, such as an introduction to marketing or international marketing. The case can be used to accomplish a variety of different teaching objectives: To provide students with an opportunity to develop a successful marketing mix for future growth. To illustrate how the elements of the marketing mix are interrelated. To discuss the process of selecting and entering new markets. To determine how to allocate resources between domestic and international markets.

Dec 11, 2015 (Revised: Dec 11, 2015)

Discipline:

International Business

Geographies:

United States

Industries:

Food industry

Ivey Publishing

W15569-PDF-ENG

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Burger King's secret to becoming the most successful fast food chain

Burger King is outperforming McDonald's and Wendy's. 

The fast food chain is posting US sales gains at a time when its competitors are falling or stagnant. 

Burger King owes its success to one thing: simplicity, according to a recent report by Citi Research. 

"Burger King has debuted  successful new limited time offers without adding back-of-the-house complexity," Citi analysts write. "The brand has  highlighted simplicity effectively — adding sauces, cheese, or when in doubt,  bacon— and continues to benefit from successful promotions (2 for $5  sandwiches)."

By creating new menu items from existing ingredients, like the new ultimate bacon cheeseburger, Burger King can entice customers without overwhelming its workers and slowing down service.

For instance, the ultimate bacon cheeseburger is similar to the classic. It contains burger patties, bacon, and American cheese, and is topped with A1 sauce. 

"N early all of these items  were already present in other menu items but the unique combination creates a  marketable new item," Citi writes. 

Related stories

McDonald's drive-thru wait times have gotten longer, a problem that experts blame on an increasingly complex menu. 

Burger King is also promoting the items already on the menu. 

Cash-strapped Americans are increasingly unwilling to shell out for fast food. 

Burger King has lured in customers with promotions like the two for $5 sandwich deal,  Businessweek writes . The brand also sold 10 chicken nuggets for $1.49. 

To help offset the discounts, Burger King raised the prices of some items. 

While McDonald's offered a promotion on free coffee, the higher price of burgers is a turnoff for consumers. 

A  Double Quarter Pounder with cheese, fries, and a drink now totals about $7.50 at some Chicago locations,  Bloomberg reports .

That's too expensive for many customers,  Leslie Patton at Bloomberg writes .

Watch: We Went To McDonald's To See If The 'Secret Menu' Is Real

• Main content

Burger King Branding Strategy and Marketing Case Study

Analysis and examples of burger king’s identity, positioning, key messages, tone of voice, brand archetypes, customer benefits, competitors, and marketing content..

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Brand Overview

• Food Service

Business Type

Physical Products

https://www.bk.com

Target Customer

Classic Fast Food Consumers

Primary Need ( Job To Be Done )

Eat some traditional, fast comfort food

Brand Visual Identity & Content

Primary brand colors, brand typefaces, hero content.

Hero Content Type

Content features people, brand messaging, key messages, benefit or feature focus, tone of voice, brand archetypes.

( Learn More About Brand Archetypes )

Everyperson

Brand Positioning ( Elements of Value )

( Learn More About The Elements of Value )

Aspirational

Affiliation / Belonging

Sensory Appeal

Reduces Cost

Brand Benefits

Access a food option that I can get quickly and that’s consistent no matter where I am

Enjoy classic comfort food that I’ve eaten my whole life

Avoid spending too much money for a quick meal

Competition

Key competitors.

McDonald’s , Wendy’s, Jack In The Box, Carl’s Jr., Chipotle , Arby’s, KFC, In-N-Out, Five Guys, The Habit, Taco Bell, Subway

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Burger King Franchise Financial Model

Fully editable financial model template in Excel format specifically built for Burger King franchises with the latest Franchise Disclosure Document

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CUSTOMISED FOR Burger King FRANCHISES

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You don’t have to do anything. We built your financial model template with the latest available financial data from the  Franchise Disclosure Document

What's inside

This financial model template include everything you need for your business plan.

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• Cash flow statement
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• Break even analysis
• Sources and uses
• Return on investment (ROI)

The financial model shown here is an example.

Naturally, the

is customised for your franchise instead.

CUSTOMIZE 100+ ASSUMPTIONS

The financial model is fully editable and can be easily modified to fit your franchise. Easily change more than 100+ assumptions:

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Burger King - Branding & Marketing strategy [Case Study]

Burger King is a very familiar name to Indians and even the whole world. This chain of hamburger fast food restaurants that operates in many countries have their headquarters in Florida. Burger King was launched in 1953 as Insta – Burger King. It was a Jacksonville, Florida-based restaurant chain. After the business ran into financial problems two of their Miami-based franchisees James McLamore and David Edgerton bought the company in 1954 and renamed it as "Burger King”.

From then on Burger King has had four different owners till the next 50 years. During this bumpy ride it has had its own highs and lows where in the 1970s were known as the golden age as far as the Burger King was concerned.

The growth of Burger King is something that all of us should closely study. From offering a basic menu of burgers, sodas, milkshakes and French fries, today it has an extremely elaborate menu with the Whopper being the first major addition in 1957.

Since then they have continued to incorporate more and more dishes into the menu, some of them being successful and others not. Today they have 11 million guests every day across the world. It has become the world's second-largest fast-food hamburger chain. They have an estimated 13,000 outlets in more than 79 countries across the globe. Out of these 66% of the outlets are situated in the US with nearly 99% of them being owned and operated privately.

Their commitment to providing the best recipes, premium ingredients and cordial dining experience is what they claim to be the secret of their success in the last 50 years. This article will look at their branding and marketing strategy which is keeping them at the top throughout thick and thin.

Rebranding of Burger King Burger King Campaigns that Changed the Game Burger King's Advertisement Strategy Burger King's Concern for Humanity FAQ

Rebranding of Burger King

Burger King as mentioned earlier was and still is one of the most famous fast-food chains in the world. It was rebranded after 20 years in 2020 with the revamped logo, unique uniforms and innovative packaging which were designed by Johns Knowles Ritchie - a creative agency. The one thing that they have done differently here is that they were constantly going back to their roots.

With regard to the change in the logo as well they were in fact paying homage to the heritage of the brand. And they hope that this redefined design will be indicative of the confident, funny and simple firm that they are.

Their simple rebranding techniques like the new logo, packaging that has the item names written onto it , the font of their text are well thought and researched decisions.

They are aware that nobody is in fact looking forward to anybody's campaigns and what they have to do is to pitch in their product amidst the things that people are doing. For this creativity is a very important factor and Burger King emphasises this like nobody else.

Burger King Campaigns that Changed the Game

If you have noticed all of their campaigns the one thing that they try to project is the credibility of the firm. They try to put it across to people that Burger King cares about its customers . For example, their award-winning advertisement in 2020 which was the “ Moldy Whopper ” campaign garnered a lot of attention across the globe.

The idea was to prove to its customers that their food does not contain any preservatives. In this case, they took advantage of the very popular secret which accuses McDonald's of their eternal burgers.

Burger King really knows how to make use of the competition in the industry for their advantage. For example, there was another campaign titled ‘ Whopper Detour ’ that gave its customers their signature “Whopper” for one cent when they reach within 600 feet of any McDonald's location.

The campaign was such a hit that there were over 4 million downloads within October and December 2019. Exactly what they wanted. They not only took advantage of their competition but were also very quick to adapt to any kind of challenges, even the pandemic.

When Covid 19 struck all industries , Burger King did not wait even a minute to launch their touchless technology in its restaurants.

Another was a very daring step where they released an open request to McDonald's asking for a collaboration of both of their dishes. As expected McDonald's turned down their offer. But Burger King had nothing to lose and everything went as planned. As the news spread the sale of the company increased manifold times during that time.

Burger King's Advertisement Strategy

Burger King is not just concerned about the kind of advertisements and campaigns that they launch, they are also very careful about where these advertisements go. They concentrate immensely on local advertising such as roadside ads, hoardings, billboards etc.

They make sure that each and every initiative that they plan for the customers are out there in public right in front of them. This is a brilliant way to encourage local customers to visit Burger King without even them realising that.

They also ensure that the menu and all other possible details are appropriated to fit into the local desires and likings of the people. They have a highly differentiated targeting strategy to address the locally specific needs of the company.

Burger King's Concern for Humanity

Burger King has also contributed towards improving the plight of people who are not privileged. They have launched various campaigns in this regard which have also led to their popularity.

"Have it your way foundation “ is one such campaign that mainly focuses on preventing diseases and eradicating hunger from every household. Their utmost care for people around them was widely appreciated.

Along with it came the "McLamore Foundation” which gives scholarships to students who are interested and are also deserving. These campaigns have definitely added to the human side of the company which has also immensely helped in maintaining and even escalating its brand image.

There is no doubt about the increasing competition in the fast-food market at national and international levels. Despite that Burger King has successfully placed itself at the top of the market by being the second largest. Careful product placement, efficient advertisement, excellent customer relations and explicit humanitarian concerns are the main reasons why Burger King has been able to maintain its position in the last 50 years.

If there is one thing that we can learn from Burger King’s marketing and branding strategy, it would be creativity and consistency.

Who is the CMO of Burger King?

Ellie Doty is the Chief Marketing Officer of Burger King.

What is Burger King's new slogan?

The new slogan unveiled by Burger King is “Be Your Way”.

Who is the founder of Burger King?

Burger King was founded by James McLamore, David Edgerton in 1954.

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Franchise Business Plan – Burger King

Burger King is the world’s fifth-largest fast-food chain, with over 15,000 restaurants worldwide . As 11 million people visit Burger King worldwide every day, the company cares intensely about customer experience and public respect for the brand. According to IBIS World, Burger King primarily franchises restaurants, with about 90.0% of its stores operating under franchise agreements. About 44.0% of the company’s restaurants are based in the U.S. Burger King’s U.S. industry-specific sales will reach $9.2 billion in 2018. Joorney Franchise Business Plans has extensive experience in collaborating with investors looking to open a Burger King restaurant.

To provide the highest quality Franchise Business Plans , Joorney Business Plan Writers address the key issues, such as:

Advertising

Burger King requires franchisees to pay an advertising monthly contribution equal to 4 percent of gross sales. Burger King uses the advertising contributions to pay for various types of expenses related to advertising and promotion such as market research, development, and production of advertisements, sales promotions, public relations, media costs, and administrative expenses. Joorney Business Plans helps in writing advertising and marketing strategies and developing budgets in line with the franchise agreement.

One of the key points of Burger King’s success is a thorough and intensive training program that covers a broad range of technical and managerial skills. Franchisees must attend two weeks of franchise orientation and complete a 440-hour, on-site training in an existing Burger King restaurant. The franchisor also makes available and sometimes requires periodic workshops and seminars for managers, which include management courses and updating of operational skills. For certain training courses, franchisees must pay a course or materials fee to the franchisor or third parties. Joorney Business Plan Writers have experience describing and developing employee long-term plans and linking the proposed individuals’ skills and training to their designated roles.

Territory Granted

Franchisees are granted the right to operate a Burger King restaurant at a specific location only. However, the franchise agreement does not grant or imply any type of area or territory, exclusive or protected, or protected customer base. Joorney Business Plan writers develop in-depth local market analyses as well as competition analyses helping franchisees estimate their growth potential in a specific territory.

Initial Investment

The franchise fee is a flat $50,000, and the total initial investment could be as low as $300,000 making Burger King one of the more affordable franchising options in its class. Burger King earns 4.5 percent royalties on sales as opposed to the more traditional 6% fast food industry royalty fee. Burger King also offers special incentive programs by being a MinorityFran participant. Joorney Business Plan writers have experience in creating long-term financial projections for Burger King restaurants and understand the specifics pertaining to the initial investment requirements.

By running a Burger King restaurant, you can profit from the expertise that a successful multi-national fast-food corporation provides. Burger King experts have more than 60 years of experience and achievements in the fast-food industry and customer satisfaction.

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Marketing Plan of Burger King

by kasi | Marketing Plan

Burger King is one of the largest American fast food chains. It was launched in 1953 and now owns 90 plus branches worldwide. Burger King has attained a stable name in the industry it operates in and has been among top few names in terms of excellent marketing strategies and brand awareness on global level.

Segmentation & Target Market

Segmentation.

Segmentation for Burger King really means menu and its contents that differs among demographical segments. Thus Burger King has divided its customers among children, women and teenagers and therefore they have launched complete set of advertisements just for kids along with special kiddy menus as well. While for teenagers and women the focus is more on key menu i.e. Chicken Burgers, Sandwiches and Salads and variation in spices and choice of each item from a category represents each segment very well.

Target Market

For Burger King the target market initially was youth but later they realized it’s a narrow target market and thus they expanded their choice and now they are approaching each age group and gender via different branding and marketing campaigns. Target market for Burger King now includes women, children and youth majorly. Moreover, it has been focusing over worldwide expansion through opening new branches geographically as well. This has been successful in raising the overall sales of the company.

Competitors & Competitive Analysis

Competitors.

Among several small and large competitors in the fast food industry, the key competitor for Burger King is McDonalds. KFC, Subway and Pizza Hut.

• SWOT Analysis

• Burger King has very strong brand awareness globally with around 90 branches worldwide and still expanding. • It offers a diversified product line which helps attract diversified customers. • Moreover, its increasing popularity among middle class customers is raising the number of loyal customers and repeated visitors. 

• The key weakness of the company is advertising unhealthy lifestyle and menu items that create obesity or other diseases. This in general is raised as concern of many which sometimes affects the business. • The network of Burger King is expanding at a slower pace due to lack of Franchise business preference.

Opportunities

• A very obvious opportunity for Burger King is more expansion, working on ventures or franchising business to cover major fast food markets in the world. • The other opportunity is introducing a healthy food line like salads, more can be added like cholesterol control items that attract a lot of obese segment. This will immensely increase the sales.

• Stern competition in this industry is quite a threat for Burger King. Because one good product launch of a competitor can hit the business in one go. In order to compete this, company has to think ahead of time and introduce strategies and products accordingly. • High food items cost is directly reflective on prices of the company especially in inflation season. Thus this can also serve as a threat for the company. 

Marketing Strategy 

Marketing strategy of Burger has been highly built on media ads and word of mouth in past. While it changed over time with addition of product launch events, and now it is focusing on social media marketing a lot like company website, food based websites, Facebook, YouTube, Instagram and other channels to reach out to its customers.

Customer Analysis

Customers of Burger King are loyal customers as the company is offering its key products to appeal and retain its customers. Few products like “Satisfries (The low calories fries)” have contributed in same way, only this product has gathered a lot of loyal customers of this product in North America for Burger King.

Core Competency

Burger King has a very strong parent company (Restaurant Brand International) which serves as its competitive edge.

• Marketing Mix

Burger King has placed its fast food products through franchising business globally. It targets places with high fast food consumption scope and it also earns via franchising business fees as well. It also works in lending the property for franchising business which adds on to the revenue. 

Burger King’s pricing strategy is somehow unique. It prices its products with psychological customer behaviors. Like the products that sells the most is usually maintained at a good price while discounted rates are launched for new or less selling products. 

The product line of Burger King started with Burgers and Fries and later in tailored the products with the customer input. Now Burger King offers burger, fries, salads, breakfast menu, beverages like coffee and shakes, sweet items as well like cookies, ice cream and pastries.

Burger King has been focusing on advertising majorly for promotions while now it has been a part of bigger digital marketing campaigns and targeting the malls, events and other customer gathering places as well. But digital marketing is among the key promotional tools now.

Current Marketing Strategy

Burger King as mentioned previously has been into many types of marketing strategies but now social media marketing has gained the edge. Globally the digital market is true marketing strategy now days. Same is the case with Burger King; it is majorly focusing on digital market channels to serve its customers as much as possible. Experience of customers with online presence and ordering channels is true marketing face of Burger King. In additional usual media advertisement never fails to make the lead part in marketing strategy of Burger King.

Recommendation for Strategy Revamp  

Burger King is an establish brand name already, the only add on it can focus at is its franchising strategy. The more franchises it would have, the more business will be bought to the company. Secondly in few markets because the competitors have already established a good name, so for Burger King to hit the ground, few unique locally devised menu items would be a plus.

Bartelby, (2018). Accessed: 27th Feb 2018. Website: https://www.bartleby.com/essay/MARKETING-SEGMENTATION-TARGETING-AND-POSITIONING-OF-BURGER-FKCV9X4KVJ Adage, (2018). Accessed: 27th Feb 2018. Website: http://adage.com/article/news/burger-king-s-broadened-audience-target-pays-sales-growth/238033/ Marketing81, (2018). Accessed: 27th Feb 2018. Website: https://www.marketing91.com/marketing-strategy-burger-king/

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Burger King’s Marketing Mix (4Ps) Analysis

Burger King uses its marketing mix (4Ps) as a response to the dynamic and saturated condition of the global quick-service restaurant industry. The marketing mix is a combination of strategies and tactics for effectively implementing a marketing plan. In this case, Burger King’s marketing mix aims to maximize competitiveness against a variety of players. For instance, the restaurant chain competes with other large firms, including McDonald’s , Wendy’s , KFC, Arby’s, Subway , and Dunkin’, as well as Starbucks and Tim Hortons. Considering this competitive environment, the marketing mix supports Burger King’s mission statement and vision statement , and the long-term goal of achieving the top position in the international fast-food restaurant market.

Burger King’s marketing mix (4Ps) facilitates business competitiveness. The corresponding strategies and tactics enable the foodservice company to address issues related to aggressive competition. Thus, this marketing mix and the corresponding marketing strategy strengthen the business against competitive pressure, which is noted in the Five Forces analysis of Burger King . The company’s marketing plan is seen as a response to the marketing strategies of competing quick-service restaurant businesses. Moreover, the external factors in the PESTEL/PESTLE analysis of Burger King indicate opportunities and threats that determine strategic decisions in the company’s 4P. This marketing mix is a reflection of the industry condition, the marketing opportunities available to Burger King in its target markets, and the company’s foodservice business capabilities to grow and improve based on such opportunities.

Burger King’s Products

Burger King operates as a quick-service restaurant business focusing on burgers as its main product, although other products are also significant in generating sales revenues. This component of the marketing mix presents the organizational outputs offered to target customers, who are diners or consumers of the company’s food and beverage products. In this product mix, the following are Burger King’s products:

• Chicken and fish
• Sweets/Desserts

The availability of these foods and drinks depends on the Burger King location. Burger products, such as Whopper sandwiches, are the main product line. The company also offers chicken and fish as alternatives. The sides include fries, nuggets, and onion rings. The beverages include soda, shakes, water, iced tea, fruit juices, coffee, and milk. The company’s desserts and sweets include pies and soft-serve ice cream. In this component of the marketing mix, Burger King has a limited approach, as manifested in its limited product mix. Nonetheless, this product mix aligns with Burger King’s generic competitive strategy and intensive growth strategies through the competitive advantage of the economies of scale derived from the large-scale production of a limited variety of product lines.

Place (Distribution) in the Marketing Mix

Burger King’s products are available at its restaurants worldwide. This component of the marketing mix refers to the venues or locations that the firm uses to transact with target customers. The following are the places Burger King uses to distribute its products:

• Restaurants (company-owned and franchised)
• Burger King mobile app
• Burger King websites

Burger King restaurants are the company’s main channel for directly distributing products to customers. The locations of many of these restaurants have high pedestrian traffic, which is desirable for maximizing market reach and brand exposure. Aside from restaurants, customers can use the company’s mobile app to access coupons for special offers and freebies. Customers can also use the company’s websites to place orders for home deliveries. In this component of its marketing mix, the company relies mainly on the physical presence and accessibility of its restaurants. To support such a distribution strategy in this marketing mix, Burger King’s operations management maintains a supply chain that matches the needs of the company’s locations around the world. Also, the place component and distribution strategy applied in this marketing mix influence the development of the divisions, groups, and teams in Burger King’s business structure (corporate structure) , which is designed to support multinational business operations and effective fast-food restaurant marketing strategy.

Burger King’s Promotion

Burger King employs various tactics to promote its products. This component of the marketing mix covers the tactics used to communicate with the target market about the firm’s offers. Burger King uses the following promotion or marketing communications tactics:

• Advertising
• Sales promotions
• Personal selling
• Public relations

This marketing-mix component depends on the effective use of the business strengths noted in the SWOT analysis of Burger King , such as the company’s brand. The quick-service restaurant chain relies mainly on advertising to promote its products. The company advertises on the Internet, on TV, and in print media. Also, Burger King’s promotional mix uses sales promotions in the form of coupons and other offers through the company’s websites and mobile app. The firm’s restaurant personnel also typically use personal selling to encourage customers to buy more products from the menu, such as desserts. Considering the human resource aspect of personal selling, Burger King’s work culture (organizational culture) is a significant factor in achieving effective promotion in this marketing mix. In applying public relations, the Burger King Foundation gives scholarships and financial assistance for educational programs, thereby also effectively promoting and strengthening the company’s brand. In this component of the marketing mix, the various promotion tactics satisfy market communications objectives, attract consumers to the fast-food business, and strengthen the company’s brand.

Prices and Pricing Strategies in Burger King’s 4P

Burger King’s pricing strategies are based mainly on the company’s generic strategy and its emphasis on minimizing costs and prices. In this component of the marketing mix, appropriate pricing of products is considered. Burger King’s pricing strategies are as follows:

• Market-oriented pricing strategy
• Bundle pricing strategy

Burger King uses a market-oriented pricing strategy as its primary approach to pricing. This pricing strategy involves setting price ranges and price points based on prevailing market conditions and factors, like supply availability, demand levels, and the prices of competing fast-food firms. The market-oriented pricing strategy ensures that the company’s prices are competitive. On the other hand, Burger King’s secondary pricing approach is the bundle pricing strategy. For example, customers can buy value meals, family bundles, and Kids meals at bundle prices that are more affordable than buying menu items separately. Bundle pricing attracts diners, especially those who come in groups, such as families. This component of Burger King’s marketing mix shows that the fast-food restaurant chain considers market conditions for determining its prices.

• Burger King – Locations .
• Burger King – Royal Perks .
• Burger King Foundation .
• Kingsnorth, S. (2022). Digital Marketing Strategy: An Integrated Approach to Online Marketing . Kogan Page Publishers.
• Kucuk, S. U. (2023). Marketing Mix Modeling and Coordination. In Visualizing Marketing: From Abstract to Intuitive (pp. 103-115). Cham: Springer International Publishing.
• Restaurant Brands International Inc. – Form 10-K .
• U.S. Department of Agriculture – Economic Research Service – Food Service Industry Market Segments .
• Winata, E. (2023). The effect of service quality, facilities and location on customer satisfaction: A case study in the food industry. International Journal of Law Policy and Governance, 2 (1), 1-2.
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Burger King Plans to Invest $300 Million to Redesign Around 1,100 of Its Restaurants in the U.S.

I n a sweeping bid to rejuvenate its brand and boost sales, Burger King, the global fast-food giant known for its signature Whoppers, is rolling out an ambitious $300 million renovation plan for about 1,100 of its U.S. locations. This move is a continuation of a strategic makeover spearheaded by its parent company, Restaurant Brands International, which aims to modernize the fast-food chain and enhance its competitive edge in the industry.

A Multi-Million Dollar Revamp Strategy

The investment plan, which was announced earlier this week, marks another significant financial commitment by Restaurant Brands International, pushing its total spend on revitalizing Burger King’s U.S. operations to an eye- watering $2.2 billion.

“It was the first time in a long time that RBI had invested a significant amount of capital back into the business to co-invest with franchisees,”

said the company’s U.S. President, Tom Curtis.

This latest financial infusion follows a series of strategic moves, including last January’s acquisition of Carrols Restaurant Group, Burger King’s largest U.S. franchisee, for $1 billion. This acquisition is set to accelerate the remodeling efforts, with an additional $500 million earmarked for updating 600 of Carrols’ locations.

Burger King’s “Sizzle” Design: Revolutionizing Customer Experience

Burger King’s new remodeling blueprint, dubbed the “Sizzle” design, aims to revolutionize the customer experience. Features like drive-thru pickups for mobile orders and self-order kiosks are at the forefront of this design, promising a more efficient and user-friendly service model. These enhancements are expected not just to attract more customers but also to encourage them to spend more per visit.

The “Sizzle” design is already showing promising results. According to Curtis, about 100 locations sporting the new design have reported a significant uptick in sales post-renovation. This early success appears to validate the company’s strategy and could serve as a catalyst for more franchisees to join the remodeling effort.

Challenges and Incentives in the Remodeling Effort

Despite the enthusiasm surrounding the new designs and technological upgrades, the remodeling process is not without its challenges. High costs and potential temporary closures during renovations pose significant hurdles. To mitigate these, Burger King has had to incentivize franchisees with cash payouts upon completion of the renovations and offers on royalty discounts.

As Curtis embarks on a U.S. roadshow to pitch this ambitious remodeling strategy to franchisees, the company hopes to rally its operators around the transformative potential of these investments. Starting this initiative amidst fluctuating economic conditions, especially with high interest rates, underscores the risks Restaurant Brands is willing to take to secure a leading edge in the competitive fast-food market.

Market Response and Future Outlook

Despite these bold moves, Restaurant Brands experienced a flat response in premarket trading following a report of weaker-than-expected earnings, though its quarterly revenue did exceed Wall Street estimates. With Burger King’s same-store sales experiencing modest growth, the full impact of this extensive remodeling strategy remains to be seen. By 2028, the company aims to have 85% to 90% of its roughly 7,000 U.S. outlets reflect this new, modern design, setting a substantial benchmark for the future of the chain.

Burger King’s extensive investment in revamping its U.S. locations reflects a strong commitment to staying relevant and competitive in a rapidly evolving market. As the fast-food landscape continues to shift towards more digitally integrated and customer-centric models, Burger King’s current strategy may well dictate its standing in the industry for years to come.

Burger King is Betting $300 Million More on Modernization Plan

The program should get 85–90 percent of U.S. Burger King restaurants updated by 2028.

Burger King on Tuesday morning shared better-than-forecasted sales as Q1 comps rose 3.8 percent on top of an 8.7 percent result from a year ago. Restaurant Brands International, which also owns Firehouse Subs, Popeyes, and Tim Hortons, posted revenue of $1.74 billion, which topped Wall Street predictions of $1.7 billion.

One of the lead drivers—Burger King’s September 2022 launched “Reclaim the Flame” plan—supplied $6 million (Fuel the Flame, including $5 million toward Burger King’s U.S. advertising plan), and $19 million (Royal Reset, including $9 million for remodels) worth of investments in the three-month period that ended March 31. As of that date, Burger King had funded a total of $79 million for “Fuel the Flame” and $81 million for “Royal Reset.”

And that’s about to accelerate.

Burger King announced, along with the sales figures, a plan to extend its “Long-Term Royal Reset Program” with an additional $300 million designed to speed “the modernization of Burger King restaurants across the U.S.”

COME MEET THE RBI TEAM IN PERSON: The presidents from Burger King, Tim Hortons, Popeyes, and Firehouse Subs are giving the keynote at this year’s QSR Evolution Conference. Reserve your spot today!

As noted, it follows Burger King’s initial call to spend $250 million on a modern image, tech, and new kitchen equipment (what’s called Royal Reset), and an additional $500 million to hasten the reimaging of more than 600 Carrols Restaurant Group owned Burger Kings following the pending acquisition. Burger King in mid-January shared plans to buy the chain’s largest operator for $1 billion—a deal that would fold in north of 1,000 stores that earned a combined $1.8 billion in systemwide sales during the 12 months ending September 30. Burger King said at the time it would drop about $500 million of capital funded by Carrols’ operating cashflow to redesign those 600 stores not currently considered “modern image.” The company also expects to refranchise “substantially all” of the Carrols portfolio to smaller, local operators within three to seven years.

Factoring in Tuesday’s announcement, RBI has about $2.2 billion earmarked to reface Burger King’s domestic operations. The path would take the brand to 85–90 percent modern image by 2028. There were 6,778 U.S. Burger King’s at year-end 2023. So it’s roughly a 6,000-store blueprint.

Burger King’s “Fuel the Flame” sets aside $150 million in incremental digital and media investments, followed by an agreement with franchisees to increase their investments in advertising from 2025–2028, should certain profitability metrics be hit.

The brand said Tuesday results back its extra push. U.S. franchisee profitability reached record averages in 2023 , up nearly 50 percent from $140,000 to more than $205,000. It also reported low-single-digit traffic growth in Q4, which was the first green lift since Q2 2021. For 2023, U.S. same-store sales hiked 7.5 percent, rolling over 2.2 percent in 2022.

While Burger King didn’t break out specifics, it noted Tuesday it’s seen “strong sales uplifts” from the 100 Royal Reset remodels that have been completed and reopened for at least six months. Burger King’s systemwide sales average at traditional units last year was $1.559 million, up from $1.508 million in 2022.

The brand did share splits in its recent FDD for remodeled restaurants overall, which includes a pool of 724 locations where the existing structure was maintained, while the interior and exterior was upgraded to modern image standards. Thirty more were scrape and rebuilds (site demolished and rebuilt on the same dirt).

For the full 754 units, the average sales uplift was 11.9 percent—24.4 percent for scrape and rebuilds and 11.3 percent for full. Traffic climbed an average of 10.7 percent (23.7 percent at scrape and rebuilds and 10.1 percent for others).

There were 338 remodels above the average traffic lift.

Burger King also said 234 restaurants underwent a conversion from a single drive-thru to a double-lane setup. The units that added a lane reported average sales increased of 14.8 percent and higher traffic of 13 percent.

Additionally, there were 608 Burger Kings in 2023 that underwent a remodel to the modern image standards from legacy image types. Legacy image refers to stores that prior to remodel had 1999, ROC, or other similar designs. And 135 units flipped to modern image from Burger King’s “20/20 Light,” “20/20 Standard,” “20/20 Hybrid,” or similar builds.

The legacy to modern images stores appreciated 13 percent higher sales on average and 11.7 percent better traffic. The other bucket reported 7.2 and 6.5 percent growth from the change, respectively.

The overall point being, Burger King has clear sight of a need to update the fleet.

RBI said Tuesday the $300 million investment will launch an expanded co-investment program called, “Royal Reset 2.0,” which builds on the initial success of the existing Royal Reset modern image investments. The program will provide cash incentives to top performing and committed operators, RBI said, to support remodels and rebuilds, and “unlocks the opportunity to complete approximately 1,100 additional remodels through 2028.”

RBI does not expect to deploy any additional capital toward co-investment remodel programs once these efforts are complete.

“We are committed to giving our guests the very best experience in all our restaurants and that includes a modern, exciting restaurant image and digital experience that exceeds their expectations,” Burger King president of North America Tom Curtis said in a statement. “We are working in close partnership with our franchisees to transform our restaurant footprint across the country and reclaim our flame as a leader in the [quick-service] industry.”

Central to the modernization is Burger King’s next-generation “Sizzle’ design , which features a format enabled to allow for flexibility in model approach, with an emphasis on digital, pickup, and drive-thru, including kiosks. Remodel projects in the Royal Reset 2.0 investment will feature the Sizzle build.

Franchisees will have until October 31 to opt-in to Royal Reset 2.0.

RBI’s systemwide sales lifted 8.1 percent, year-over-year, in Q1 as income from operations came in at $544 million versus $447 million. Net income was $328 million over $277 million in Q1 2023 and blended comp sales rose 4.6 percent. Tim Hortons led the way at 6.9 percent same-store sales growth, year-over-year, followed by Popeyes (5.7 percent), Burger King (3.8 percent), and Firehouse (0.3 percent). The international business watched its comps climb 4.2 percent on top of 12.6 percent growth from the year-ago quarter.

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