business plan of burger king

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Burger King Business Model

The Burger King business model focuses on selling its signature fast food products and providing a unique dining experience. Strategically segmenting its market allows Burger King to tailor its menu offerings, marketing strategies, and store designs to meet different customer groups’ distinct preferences and requirements.

Burger King’s value proposition revolves around offering a diverse range of high-quality, quick-service food options. The company aims to provide customers with delicious, convenient meals that satisfy their cravings while maintaining a commitment to quality ingredients and food preparation. This commitment extends to accommodating different dietary preferences, such as introducing vegetarian and plant-based options.

Among other factors, this company’s business model involves technological innovations, strategic partnerships, and a global franchise network. 

A brief history of Burger King

Burger King, one of the world’s largest fast-food chains, has a rich history dating back to its founding in 1954. The company was established by James McLamore and David Edgerton in Miami, Florida, USA. Inspired by the success of the McDonald’s restaurant concept, McLamore, and Edgerton aimed to create a similar fast food experience but with a unique twist.

The first Burger King restaurant opened in Miami in 1954, offering flame-grilled burgers, a signature cooking method that would become synonymous with the brand. This distinctive approach to burger preparation sets Burger King apart from its competitors, giving the company a competitive edge.

In the following years, Burger King grew significantly, expanding its presence through franchising. The company’s success caught the attention of the Pillsbury Company, which acquired Burger King in 1967. Under Pillsbury’s ownership, Burger King experienced a period of rapid expansion, both domestically and internationally, with new restaurants opening across the United States and various countries worldwide.

Historically, Burger King has introduced several iconic menu items, such as the Whopper, a flame-grilled hamburger that quickly became a fan favorite. The company has also been known for its marketing campaigns, including memorable slogans like “Have It Your Way” and the popular “The King” character, which helped build brand recognition and customer loyalty.

Over the years, Burger King went through various ownership changes and corporate restructuring. In 2002, private equity firm 3G Capital acquired the fast food chain for about $11 billion . Under new ownership, the major fast-food restaurant underwent further expansion and strategic initiatives, including menu diversification and international market development.

In 2014, Burger King merged with the Canadian-based Tim Hortons, forming Restaurant Brands International (RBI), which became the parent company of both brands. The merger gave the fast-food giant access to new markets and resources for global growth.

Today, Burger King operates thousands of restaurants worldwide, serving a diverse menu that includes flame-grilled burgers, chicken sandwiches, salads, and breakfast items. The company continues to innovate and adapt to changing consumer preferences while maintaining its commitment to delivering high-quality, customizable, fast food experiences.

Who Owns Burger King

Restaurant Brands International (RBI) owns Burger King. RBI, headquartered in Toronto, Canada, is a publicly-traded company listed on the New York Stock Exchange and the Toronto Stock Exchange. It’s one of the largest fast food companies in the world, with a strong portfolio of brands that includes Burger King, Tim Hortons, and Popeyes Louisiana Kitchen.

Burger King Mission Statement

The Burger King mission statement is “to offer reasonably priced quality food served quickly in attractive, clean surroundings.”  

How Burger King works

Burger King works as a globally renowned fast-food chain, serving millions of customers worldwide. Just about all of Burger King’s operations revolve around providing a satisfying dining experience.

Behind the scenes, Burger King operates through a franchise model. Independent franchisees own and operate individual Burger King restaurants, ensuring a widespread presence across the globe. 

These franchisees undergo a rigorous selection process, meeting Burger King’s requirements for financial stability and operational competence. Once approved, franchisees receive support from Burger King in various areas, such as restaurant design, marketing campaigns, and ongoing training.

With that said, Burger King operates with a customer-centric approach, offering a diverse menu, convenient ordering options, and a commitment to quality and cleanliness. 

How Burger King makes money

• Sale of burgers and other fast foods

Perhaps the most significant contributor to Burger King’s revenue comes from the sales generated by its restaurants. Customers who visit Burger King locations and purchase food and beverages earn income from these transactions.

In 2020 alone, Burger King generated about $4.9 billion in revenue , with food sales contributing approximately 50% of the company’s revenue. 

• Franchise fees, royalties, and property income

Burger King operates primarily under a franchise model, wherein independent franchisees own and operate individual Burger King restaurants. As part of this arrangement, this company collects franchise fees from franchisees when they join the system. These fees cover expenses related to restaurant setup, training, and ongoing support provided by Burger King.

Additionally, Burger King earns ongoing royalties from its franchisees. These royalties are typically a percentage of the franchisee’s sales and serve as a recurring income stream for Burger King, reflecting the brand’s value and ongoing support provided to its franchisees.

Burger King owns about 19,000 restaurants, which are often leased to franchisees. In 2020 alone, Burger King generated about $4.9 billion in revenue, with franchises and property income contributing approximately 50% of the company’s revenue. 

• Product licensing and merchandising

Burger King has extended its brand beyond the restaurant setting by licensing its name and trademarks for various products and merchandise. This includes partnerships with companies to create and sell Burger King-branded products such as sauces, dressings, snacks, and promotional items. 

This revenue is generated through licensing agreements and the sale of these licensed products, expanding the reach of the Burger King brand and providing an additional revenue stream.

Burger King Business Model Canvas

The Burger King Business Model can be explained in the following business model canvas :

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Burger King Customer Segments

Burger King’s customer segments consists of the following: 

• Traditional Fast-Food Enthusiasts: This segment comprises customers drawn to Burger King’s classic, no-frills fast-food offerings. These individuals appreciate the brand’s legacy and value affordability, speed, and convenience. Burger King’s wide range of signature flame-grilled burgers, fries, and milkshakes satisfies their cravings for indulgent, familiar comfort food;
• Millennials and Generation Z: These tech-savvy, socially conscious customers are attracted to brands that align with their values and preferences. Burger King has engaged this segment through innovative marketing campaigns and digital initiatives;
• Vegetarians and Vegans: To supply the increasing demand for plant-based options, Burger King introduced the Impossible Whopper and the Rebel Whopper. These offerings appeal to vegetarians and vegans who seek meat-free alternatives without compromising taste;
• Value Seekers: In today’s economic climate, customers seek affordable options without sacrificing quality. Burger King’s value menu, promotional offers, and combo meals supply this segment by providing substantial meals at reasonable prices. 

Burger King Value Propositions

Burger King value propositions consist of:

• For Traditional Fast-Food Enthusiasts: Burger King appeals to fast-food lovers by offering a wide range of classic and innovative menu items. From their iconic flame-grilled burgers to their crispy chicken sandwiches and delicious sides, Burger King provides a diverse and indulgent menu for those seeking a satisfying fast-food experience;
• For Millennials and Generation Z: Burger King frequently introduces limited-time offerings and collaborations with popular brands, appealing to young consumers. By constantly innovating its menu, Burger King captures the interest of young customers looking for new and intriguing food choices;
• For Vegetarians and Vegans: Burger King provides a value proposition for those seeking meat-free options without compromising on taste. Burger King recognizes the increasing demand for plant-based options and has made efforts to supply the needs of vegetarian and vegan customers;
• For Value Seekers: Burger King provides customers with busy lifestyles by offering quick service and convenient meal options at affordable prices. With their drive-thru and mobile ordering capabilities, customers can easily enjoy a promotional offer and grab a combo meal on their way to work, during a busy day, or when they’re short on time.

Burger King Channels

Here are the various channels through which you can access Burger King:

• In-Restaurant Dining
• Third-party service providers

Burger King Customer Relationships

Here are ways to get in touch with the customer support team at Burger King:

• Online Contact Form
• Social Media
• Postal Mail

Burger King Revenue Streams

Here are Burger King’s revenue streams :

Burger King Key Resources

Here are some of Burger King’s key resources :

• Brand: Burger King’s well-established brand, recognized globally, is a valuable intangible asset. The brand represents quality, convenience, and its signature flame-grilled taste;
• Franchise Network: Burger King’s extensive network of franchisees is a crucial resource. These independent operators invest in and operate Burger King restaurants, expanding the brand’s reach and driving revenue;
• Intellectual Property : Burger King’s intellectual property includes trademarks, logos, and menu items that are protected and recognized by customers worldwide. This intellectual property safeguards the distinctiveness and market positioning of the brand;
• Supply Chain: The efficient supply chain is critical to ensure the availability of fresh ingredients sourced from approved suppliers for Burger King restaurants globally. This resource helps maintain the quality and consistency of the menu offerings;
• Restaurant Infrastructure: Burger King’s physical infrastructure, including its restaurant locations, kitchen equipment, and seating areas, is a vital asset. These facilities provide a platform for the company to serve its customers and generate revenue;
• Technology and Digital Platforms: The adoption of technology and digital platforms has become increasingly important in the fast food industry. Burger King utilizes digital tools, such as mobile apps and online ordering systems, to enhance customer experience and drive sales;
• Marketing and Advertising: Burger King’s marketing and advertising campaigns are essential resources for brand promotion and attracting customers. Strategic marketing initiatives help drive sales and maintain a competitive edge;
• Financial power: The financial resources, including capital investments and financial reserves, play a crucial role in Burger King’s operations. These resources support new restaurant openings, innovation, marketing activities, and overall business growth.

Burger King Key Activities

Here are some of the main activities at Burger King:

• Restaurant operations
• Franchise management
• Menu development
• Supply chain management
• Marketing and advertising
• Quality assurance and food safety
• Employee training and development
• Community engagement and corporate social responsibility

Burger King Key Partners

Here are some of Burger King’s main partners :

• Giants Gaming
• Doritos 

Burger King Cost Structure

According to Burger King’s financial statements, here is a brief overview of Burger King’s cost structure :

• Cost of sales, including the purchase of raw materials, transport, and other direct expenses related to sales;
• Franchise and property expenses;
• Selling, general and administrative expenses such as sales commissions, advertising costs, executive salaries, office rent, legal fees, and employee training expenses.

Burger King Competitors

• McDonald’s: As an industry titan, McDonald’s stands out as Burger King’s primary competitor. Many people believe McDonald’s has the best burger and fries compared to other fast food restaurants. With a vast global presence, McDonald’s has established a strong brand identity and offers a diverse menu that appeals to a broad customer base;
• Wendy’s: Wendy’s, known for its square-shaped burgers, is another major contender. With a focus on fresh ingredients and bold flavors, Wendy’s positions itself as a higher-quality fast food option, competing directly with Burger King’s offerings;
• KFC: Kentucky Fried Chicken (KFC) specializes in fried chicken and competes with Burger King through its expansive menu of chicken-based products. KFC’s strong brand recognition and unique flavor profiles make it a formidable rival in the fast-food landscape;
• Subway: Although primarily known for its submarine sandwiches, Subway has become a notable competitor to Burger King, especially in the quick-service restaurant segment. Subway’s emphasis on healthier choices and customization options sets it apart from traditional burger-focused chains;
• Taco Bell: Taco Bell competes with Burger King through its Mexican-inspired menu offerings, attracting customers seeking a different flavor profile. With a focus on affordability and innovative limited-time offerings, Taco Bell presents a formidable challenge to Burger King’s market share;
• Chick-fil-A: While primarily concentrated in the United States, Chick-fil-A has gained substantial popularity and poses a significant threat to Burger King. Known for its chicken sandwiches and strong customer service, Chick-fil-A has cultivated a loyal following and competes directly in the fast food space;
• In-N-Out Burger: Although geographically limited primarily to the western United States, In-N-Out Burger has gained a cult-like following. Its emphasis on freshness, simplicity, and secret menu items provides unique competition to Burger King in certain regions.

Burger King’s SWOT Analysis

Below, there is a detailed SWOT analysis of Burger King :

Burger King Strengths

• Strong global brand recognition: Burger King has established a strong brand reputation that resonates with consumers around the world. The brand has successfully crafted a distinct identity that sets it apart from its competitors;
• Effective marketing campaigns: Burger King has demonstrated strength in creating effective marketing campaigns and establishing brand partnerships that generate significant consumer interest. This ability to capture the target audience’s attention and create a buzz around their products and promotions has been monumental for the brand’s success;
• Adaptability to changing consumer trends and preferences: One aspect of Burger King’s adaptability is its responsiveness to shifts in dietary preferences. In recent years, there has been a growing demand for plant-based alternatives among consumers. For instance, Burger King recognized this trend and introduced the “Impossible Whopper,” a plant-based burger option that closely mimics the taste and texture of their iconic Whopper;
• Extensive and diverse menu offerings: Burger King’s strength lies in its extensive and diverse menu offerings, a tantalizing array of options designed to cater to the varying preferences of its customers. From flame-grilled burgers to chicken sandwiches, salads, and sides, Burger King goes the extra mile to ensure there’s something for everyone.

Burger King Weaknesses

• Its business model can be easily replicated: Burger King’s business model, while successful, can be imitated by competitors. This imitability poses a weakness for the company. The fast-food industry is known for its fierce competition, with numerous players vying for market share;
• Burger King has limited control over its franchises: While franchising can be an effective business model for expansion, it also comes with specific challenges. Burger King grants considerable autonomy to its franchisees, allowing them to make local decisions and tailor their operations to the specific market. However, this decentralized approach can sometimes lead to inconsistencies in quality, service, and overall customer experience;
• Reliance on price promotions : Burger King has been known for its heavy reliance on price promotions and discounting strategies to attract customers. While these tactics can drive short-term sales, they may erode profitability and harm the brand’s image in the long run. Overdependence on such strategies may also make it challenging for the company to maintain a premium positioning or command higher product prices.

Burger King Opportunities

• Room to explore its menu options: Burger King can continue to explore menu innovation by introducing new and unique products. This includes developing plant-based options, expanding their vegetarian and vegan offerings, and incorporating global flavors to cater to diverse consumer preferences;
• Expansion into Emerging Markets: Burger King can target emerging markets with a growing middle class and an increasing appetite for fast food. This includes countries in Asia, Africa, and Latin America, which offer untapped opportunities for expansion.

Burger King Threats

• Intense competition: Burger King faces significant competition from fast-food chains like McDonald’s, Wendy’s, and Subway. The intense rivalry within the industry can potentially impact market share and profitability;
• Changing consumer preferences: With an increasing emphasis on healthier eating habits, consumers are shifting towards options that offer more nutritional value. This trend poses a threat to Burger King’s traditional menu, which primarily focuses on indulgent, fast-food options;
• Rising ingredient costs: Burger King heavily relies on various ingredients, including meat, vegetables, and condiments. Fluctuations in commodity prices can impact the company’s profitability and pricing strategy, leading to potential cost pressures;
• Negative public perception: Fast-food chains, including Burger King, often face criticism for their impact on public health, environmental sustainability, and labor practices. Heightened awareness and scrutiny from consumers, advocacy groups, and regulatory bodies can create reputational challenges for the company.

Burger King has disrupted the traditional fast food industry by reimagining the dining experience for customers while focusing on quality and affordability. By capitalizing on its strengths, Burger King has established a strong brand identity, a diverse menu, and a commitment to customer satisfaction. 

Growth opportunities abound as Burger King looks to the future. The company’s focus on expanding its franchise network allows for rapid market penetration in established and emerging markets.  Burger King is well-positioned to capture a growing market segment and continue to thrive in the years to come.

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I love understanding strategy and innovation using the business model canvas tool so much that I decided to share my analysis by creating a website focused on this topic.

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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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Writing a Business Plan for a Burger King Franchise: A Complete Guide

By henry sheykin, get full bundle.

Are you looking to invest in the fast-food industry? Burger King might be the perfect choice for you. In 2021 alone, the fast-food franchise industry is set to be worth a whopping $223.8 billion . And, with a market share of 8.5% , Burger King is one of the most popular fast-food franchises out there. Here are 9 steps to create a successful business plan for your Burger King Franchisee.

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Research The Burger King Franchisee Model

Before embarking on opening a Burger King Franchisee, it is crucial to conduct thorough research about the company’s franchising opportunities. As a Burger King Franchisee , you will have access to the brand’s global recognition, proven business model, training, and support. Here are some essential factors to consider:

• Franchisee fees: All franchise agreements require an upfront payment of a franchise fee, which is typically non-refundable. In addition, there may be ongoing royalty fees, national and local advertising fees, and other charges.
• Rules and regulations: As a Burger King Franchisee, you will be required to follow strict guidelines, policies, and procedures that govern the operations of the business, such as food quality, sanitation, marketing, and customer service.
• Business support: Burger King provides comprehensive training to new Franchisees on how to manage and grow the business. The support includes site selection, construction, design, equipment, financial and accounting procedures, and inventory management.
• Menu and promotions: Burger King constantly innovates its menu with fresh and unique items that keep the customers engaged. As a Franchisee, you will be expected to follow the national promotions and offer local promotions that appeal to the target audience effectively.
• Read the Franchise Disclosure Document (FDD) carefully to understand the terms and conditions of the franchise agreement.
• Visit other Burger King Franchisee restaurants and talk to the owners to gain insights into their experiences and challenges in running the business.
• Add-ons and exclusives can make a difference in the fast-food industry. So, explore what additional options you can introduce in your offer:
• Plant-based options for non-meat eaters
• Local and organic ingredients
• Online ordering and mobile applications

By understanding the Burger King Franchisee model, you can make informed decisions about whether it is the right business opportunity for you. Also, aligning your business goals and values with the Burger King brand will help create a long and successful partnership.

Analyze The Burger King Franchisee Market

Before diving headfirst into opening a Burger King Franchisee, it is crucial to analyze the market. Understanding the existing competition and consumer trends can help you make informed decisions about marketing strategies, menu offerings, and location choices. Here are some steps to follow when analyzing the Burger King Franchisee market:

• Research existing Burger King Franchisees and their success rates in the local area
• Identify other fast-food chains and restaurants in the area that offer similar types of food
• Assess the level of demand for fast food in the area through market research and data analysis
• Consider the proximity of the potential location to high traffic areas and other businesses, such as shopping malls, movie theaters, or gas stations.
• Use online tools such as Google Trends and Yelp to gather data and insights about local burger and fast food joints
• Use social media to analyze the popularity of other fast-food chains among local customers
• Visit other Burger King Franchisee stores in the area to observe their customer traffic and menu offerings

By analyzing the Burger King Franchisee market, you can get a better understanding of what type of burger and fast food joints are popular in the area and make informed decisions about menu items and marketing approaches. Conducting thorough research can help you stand out from the competition and attract a consistent base of loyal customers.

Identify The Target Demographics

Identifying your target audience is a crucial step in establishing a successful Burger King franchisee. Knowing who your customers are, what they want, and how they behave will help you tailor your products and services to meet their needs, increase sales, and build customer loyalty.

But before you can determine your target demographics, you need to have a clear understanding of your brand and its identity. What are the values and personality of your franchisee? What sets you apart from your competitors? Answering these questions will help you determine the type of customers that are likely to be interested in your products.

Once you have a clear brand identity, you need to research and gather data on your potential customer base. Here are some ways to do that:

• Use census data: Census data can provide you with essential information on population demographics, such as age, gender, income, and education level, in your desired locations.
• Conduct market research: Surveys and interviews can give you insight into consumer preferences, behaviors, and habits. This can help you identify trends, pain points, and opportunities to differentiate your franchisee from your competitors.
• Look at your competitors: Analyzing the demographics of your competitors' customer base can give you an idea of who your potential customers might be. Consider conducting mystery shopping to observe their service, products, and clientele.
• Segment your target demographics into specific groups, such as age, income, occupation, and lifestyle. This will help you tailor your marketing messages and promotions to each group.
• Consider the psychographics of your target audience, such as their values, interests, and personality. This can help you create a brand identity that resonates with your customers.
• Be flexible and willing to adjust to changing trends and consumer preferences. Your target demographics might evolve over time, and you need to be able to adapt to stay relevant.

Identifying your target demographics is an ongoing process that requires continuous research and analysis. By knowing who your customers are and what they want, you can create a franchisee that not only meets but exceeds their expectations.

Conduct A Survey Of Potential Customers

Before you start planning to open your Burger King Franchisee, it is important to identify the needs and expectations of your potential customer base. One way to do this is by conducting a survey of potential customers. By collecting valuable information through a survey, you can tailor your business plan to better meet the needs of your audience.

Start by defining the objectives of your survey. Are you looking to gather information about your customers' preferences or buying habits? Or are you trying to find out their opinions about the menu or pricing? Once you have a clear idea of what you want to achieve, you can create a targeted questionnaire that will help you achieve your goals.

• Keep your survey short and to the point. Avoid asking unnecessary questions.
• Use simple and easy to understand language. Avoid using technical jargon or fancy words.
• Offer an incentive to encourage people to participate in your survey. For example, offer a discount or a free meal on their next visit.
• Use different channels to reach out to your potential customers. Include social media, email, and in-store surveys.

When designing your survey, make sure to ask questions that will provide you with useful insights. For example, you could ask your potential customers about their favorite fast-food restaurants, how often they eat fast food, and what their favorite burger toppings are. You could also ask them whether they would be interested in delivery or catering services.

Once you have collected the data, analyze the results and use them to refine your business plan. Identify the common trends and preferences that emerged from the survey and use them to improve your menu, pricing, and marketing strategy. This will help you create a competitive advantage and make your Burger King Franchisee stand out in the market.

Overall, conducting a survey of potential customers is an essential step in writing a business plan for your Burger King Franchisee. By understanding the needs and expectations of your audience, you can create a customized plan that will help you attract and retain customers.

Create A Competitive Analysis

As you consider opening a Burger King Franchisee, a critical step is to create a competitive analysis. This analysis will help you understand your rivals in the market, their strengths and weaknesses, and how your franchisee can stand out. Here are some steps to follow for creating a comprehensive competitive analysis.

• Identify key competitors: Start by identifying your major rivals in the market. You can use tools like Google and Yelp to find information on fast-food restaurants in your area. Once you have a list, rank them based on factors like their menu, pricing, location, and target audience.
• Assess their menu: The menu is the heart of any fast-food restaurant. Analyze the menus of each competitor on your list and highlight their strengths and weaknesses. Consider factors like variety, quality, and pricing. This analysis will help you identify gaps in the market that your Burger King Franchisee can fill.
• Look at their pricing: Assess the pricing strategy of each competitor, and how it aligns with their menu and target audience. Compare their prices with the national average for fast-food chains. Use this information to determine your own pricing strategy, and how to price your meals competitively.
• Analyze their location: Consider the location of each competitor, and what makes it attractive to their target audience. Evaluate factors like accessibility, visibility, and proximity to other businesses. Take note of any potential opportunities for location, and whether they align with your target audience.
• Consider their marketing strategy: Evaluate the marketing tactics used by your competitors. Look at their social media presence, advertising strategies, and promotions. Analyze how they engage with and attract their target audience. Use this information to develop your own marketing strategy, and find ways to stand out in the market.
• Consider surveying your potential customers to get firsthand feedback on what they want from a fast-food restaurant
• Use tools like SWOT analysis to identify the strengths, weaknesses, opportunities, and threats of your competitors
• Look beyond direct fast food competitors and assess other restaurants and businesses that may impact your Burger King Franchisee.

Determine The Initial Startup Costs

Before starting any business, you need to determine how much money you will need to get started. The initial startup costs for opening a Burger King franchisee can vary depending on a number of factors such as location, size, and initial inventory. Here are some important steps to follow in order to determine the initial startup costs:

• Contact Burger King Headquarters: The first step to determining the initial startup costs for opening a Burger King franchisee is to contact Burger King Headquarters. They will provide you with all of the necessary information such as franchise fees, training costs, and other expenses involved.
• Location: In order to determine the costs, you need to have a specific location in mind. The cost of rent, utilities, and other expenses will vary depending on the location.
• Equipment: The cost of equipment such as ovens, grills, and other kitchen appliances can be a significant cost. You must buy the equipment from Burger King approved vendors, which can increase the cost.
• Inventory: You will need to purchase the initial inventory such as food, packaging, and condiments. This cost may be recurring, depending on the frequency of deliveries by suppliers.
• Permits and Licenses: You need to obtain necessary permits and licenses from the local and state governments. Costs for these may vary depending on the location
• Insurance: You will need to purchase insurance to cover any potential losses. Insurance costs depend on the area, policies and insurance levels pursued.

Consider the different financing options such as loans or investment opportunities in order to handle the potential financial burden.

You can opt for purchasing used equipment. Although a less expensive option, this might come with disrepair and possibly lead to untoward costs later on.

Keep note of any additional costs like legal fees and accounting services related to opening a franchisee location.

Assess The Requirements For The Location

Choosing the right location for your Burger King Franchisee is a vital step in the successful operation of your business. Your decision will impact your business's visibility, accessibility, and overall sales. Here are some important factors you need to consider when assessing the requirements for your location:

• High-Traffic Area: Look for areas that get a lot of foot traffic, such as near popular landmarks, shopping areas or transportation hubs.
• Proximity to Competitors: Take a good look around the potential area and see if there are any existing fast food franchises. You might not want to be too close to them as it could affect your profit margin.
• Zoning: Check with the local government to ensure that the area is zoned for commercial use. You don't want to face any legal issues when opening your Franchisee.
• Parking: Make sure that your premise has adequate parking space for your customers. Having easy parking access will make it as convenient as possible for customers to visit your location.
• Accessibility: Ensure that your location is easily accessible to both pedestrians and motorists. This will help to increase your customer base and make it more convenient for your customers.
• Take your time and scout several locations. This will help you to choose the best location that suits your business & customer requirements.
• Consider the demographics of the area you choose. Studying the demographics will help you to cater to your customers better.
• Always consider the cost-benefit analysis before making a final decision on your location. Make sure that the cost of rent for your location is worth the revenue you will generate.

The success of your business will rely heavily on the location you choose. Take these factors into consideration and use them to determine which location is the most suitable for your Burger King Franchisee. Once you find the right location, you can proceed to the next step in opening your Franchisee.

Develop A Marketing Strategy

Creating a well-designed and effective marketing strategy is a crucial step in building a successful Burger King Franchisee. In order to attract and retain customers, your marketing plan should include a range of tactics that will promote your brand, appeal to your target demographic, and ultimately increase your sales and revenue. Here are some key steps to follow when developing your marketing strategy:

• Define your brand message: Clearly articulate what makes your Burger King Franchisee unique and why customers should choose your restaurant over your competitors. Make sure this messaging is consistent across all platforms and channels.
• Identify your target market: Determine the demographics of your customer base, including age, gender, income, and interests. Use this information to tailor your marketing efforts toward their specific needs and desires.
• Create a content strategy: Develop a plan for creating and sharing valuable content that will engage your audience and position your brand as an authority in the industry. This could include blog posts, social media updates, videos, and more.
• Utilize social media: Social media is a powerful tool for reaching potential customers and building brand awareness. Be sure to create profiles on popular platforms like Facebook, Instagram, and Twitter, and regularly post updates that promote your restaurant and showcase your menu.
• Run promotions and specials: Offering discounts, coupons, and other special deals is a great way to attract new customers and keep regulars coming back for more. Consider partnering with local businesses or influencers to increase the visibility of your promotions.
• Incorporate local marketing: Take advantage of local events, sponsorships, and partnerships to increase the visibility of your brand within the community. This could include participating in street fairs, sponsoring sports teams, or hosting charity events.
• Make your messaging clear and concise.
• Keep your content fresh and engaging to retain audience attention.
• Interact with customers on social media to increase engagement and build relationships.
• Partner with popular food bloggers or influencers to reach a wider audience.
• Monitor your online reputation and respond quickly to any negative reviews or comments.

By following these steps and incorporating a variety of marketing tactics, you can successfully promote your Burger King Franchisee and attract a loyal base of customers. Remember to track your progress and adjust your strategy as needed to ensure continued growth and success.

Secure Funding For The Franchisee Opening

Securing the necessary funding for your Burger King franchisee opening is crucial to its success. The process may seem daunting, but with the right approach and preparation, you can increase your chances of obtaining the required financing.

Here are some tips to help you secure funding for your Burger King franchisee opening:

• Start by researching potential lenders or investors who specialize in franchise financing.
• Prepare a detailed business plan that includes financial projections and a comprehensive marketing strategy. This will showcase your potential for profitability and give lenders or investors confidence in your venture.
• Consider seeking out a partner or co-investor to share the financial burden and expertise of running a Burger King franchisee.
• Explore loans and grants that are available through government programs or non-profit organizations.

Additionally, you should be prepared to invest some of your own funds into the franchisee opening. Lenders and investors will be more likely to provide financing if they see that you are personally invested in the success of the venture.

When approaching lenders or investors, be prepared to provide all necessary documents and information, such as credit reports, financial statements, and legal agreements. Be transparent and forthright about your financial situation and the details of your franchisee plan.

Remember, obtaining the necessary funding is just one step in the process of opening a successful Burger King franchisee. Be sure to execute on your plan and continuously monitor and adjust your strategies to ensure long-term growth and profitability.

Opening a Burger King Franchisee can be a lucrative business endeavor, but it requires careful planning and research. By following the 9 steps in our checklist, you can ensure that you are prepared to enter the market and succeed as a Burger King Franchisee. From analyzing the market and identifying your target demographics to developing a marketing strategy and securing funding, these steps will guide you through the process of creating a successful franchisee.

Researching the Burger King Franchisee model and market is crucial to understanding the requirements for opening a successful franchisee. Identifying the target demographics and conducting a survey of potential customers will help you tailor your offerings to meet their needs and wants. Creating a competitive analysis will enable you to strategically position your franchisee in the market.

Determining the initial startup costs and assessing the requirements for the location are essential steps in preparing to open a Burger King Franchisee. Developing a marketing strategy will help you promote your franchisee and attract customers, while securing funding will enable you to cover the costs of opening and operating the franchisee.

• Research the Burger King Franchisee model
• Analyze the Burger King Franchisee market
• Identify the target demographics
• Conduct a survey of potential customers
• Create a competitive analysis
• Determine the initial startup costs
• Assess the requirements for the location
• Develop a marketing strategy
• Secure funding for the franchisee opening

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Burger Restaurant Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Hospitality, Travel & Tourism » Restaurant » Burger Restaurant

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.

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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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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® Announces "Reclaim the Flame" Plan to Accelerate Growth in the U.S.

Burger King ® Company ("Burger King," "BK," "Company," "Brand") today shared the details of its " Reclaim the Flame" plan to accelerate sales growth and drive Franchisee profitability. The plan was built in collaboration with Franchisee leaders from across the country and was shared with all U.S. Franchisees at its annual convention this week by Tom Curtis, President of Burger King North America.

The plan includes Burger King investing $400M over the next two years, comprised of $150M in advertising and digital investments to "Fuel the Flame" and $250M for a " Royal Reset" involving restaurant technology, kitchen equipment, building enhancements and high-quality remodels and relocations. This investment will work to enhance ongoing Franchisee investments to modernize the Burger King restaurant portfolio, and when combined with our brand re-positioning plan, menu enhancements and focus on operational excellence, will help drive our overarching goal of improving the Guest experience and attracting more traffic back to the brand over time.  

Burger King Franchisees representing more than 93% of all U.S. restaurants have endorsed the plan and have agreed to co-invest in increased advertising firepower over the coming years. These corporate investments are in addition to Burger King recently expanding its field team to provide increased support to Franchisees as they continue improving restaurant-level profitability and execution.

Jose Cil, CEO of Restaurant Brands International ("RBI"), commented on the announcement: "Over the past year, Tom has built a talented leadership team that has worked collaboratively with Burger King Franchisees to develop a multi-year plan to drive the performance of the system. We believe now is the time to make a significant investment to accelerate the work given the quality of the team, focus of the plan, commitment of our Franchisees and the opportunity that clearly exists for our iconic brand to Reclaim the Flame and be the first choice for a high-quality meal, an exceptional experience, and a great value."

Tom Curtis, President of Burger King North America, added: "We are relentlessly pursuing a better experience for our Guests. This is the driving force behind all the initiatives that we are executing collaboratively with our Franchisees. Our plan is focused on a few important priorities — operational excellence, refreshed image, and enhanced marketing — that when put together, provide a superior experience for our Guests."

"I'm very proud and thankful that our Franchisees have stepped up once again to invest in our performance together, reflecting the genuine partnership and mutual respect we have built between the Franchisor and Franchisees. Ultimately, the success of this Reclaim the Flame plan comes down to execution at the restaurant level and we are so fortunate to have Franchisees who love this brand and are working closely with us to focus on the right priorities. I believe in this team, this plan, and a bright future as we evolve and enhance our Guest experience and drive profitable growth for the business."

Matt Dunnigan, Chief Financial Officer of RBI, commented: "Our $400M investment into the Burger King U.S. system represents a substantial deployment of capital toward important marketing and image investments aimed at accelerating our sales growth and modernizing our iconic brand across the U.S. In 2023 and 2024, these investments are expected to have an average annual impact to adjusted EPS of approximately ($0.10) to ($0.12), before considering benefits from any potential sales improvements. In 2025 and beyond, we expect the impact to be accretive to adjusted EPS as our advertising investments conclude and we realize the long-term sales benefits of our Reclaim the Flame initiatives and increased advertising contributions from our system."

Major Components of the " Reclaim the Flame " Plan:

The Reclaim the Flame plan is designed with targeted initiatives that will work in concert with one another to improve all the fundamental aspects of Guest experience: perception of the brand; high-quality menu offerings at everyday value; engaging and relevant advertising; high quality modernization of our restaurants; and an all-around improved service and execution.  

Brand Positioning:

Burger King is refreshing and modernizing its brand, adding meaning and relevance to historical brand anchors like 'Flame Grilling' and 'Have it Your Way', while also introducing new brand elements to broaden its attraction for a younger and more diverse base of Guests.

Menu Priorities:

Burger King has built a multi-year menu roadmap that is Guest-led and brand focused. Burger King will invest in premium branding to reaffirm the elevated position of its flame-grilled Whopper® and is developing new flavor extensions, while also focusing on Team Member training and rolling out kitchen enhancements to ensure exceptional execution at the restaurant.

The brand is also building a destination worthy Chicken Sandwich portfolio and has launched the Royal Crispy Chicken — a premium chicken sandwich with unique flavor variations built around a simplified menu and improved operations — resulting in a better Guest experience. This menu addition complements the long-standing and loved Original Chicken Sandwich — allowing the brand to strongly compete in the growing chicken sandwich market while still maintaining its focus on growing its core burger category.

Burger King is currently developing innovative products to accelerate industry leadership in burgers, breakfast, beverages, snacking, and plant-based products.  In addition, the brand will continue to provide a strong everyday value offering in its menu, especially as the cost of food at home continues to face inflationary pressures.

" Fuel the Flame " Advertising Investment:

Given our recent momentum and confidence in our multi-year plan, we believe now is the right time to significantly enhance our advertising firepower. In a historic agreement with its Franchisees, Burger King will invest $120M in its U.S. advertising fund over the next two years to grow traffic, accelerate sales growth and amplify the fundamental advancements we are making to the Guest experience. The Burger King advertising investment represents an annual increase of approximately 30% to the brand's media purchasing firepower, inclusive of advertising efficiencies we expect to achieve through our ongoing partnership with our new media agency. Following the investment period in 2023 and 2024, participating Franchisees have agreed to increase their advertising fund contributions by 50 basis points through 2028 if certain profitability thresholds are met, which we plan to share an update on annually. This plan has received the endorsement of Franchisees representing more than 93% of the system, all of whom have agreed to the new Fuel the Flame co-investment program over the past two months.

In addition, Burger King will invest $30M through 2024, in excess of the digital fees collected from Franchisees, to support our Guests ease of ordering on the Burger King app which includes integrated payment processing, enhancing the Royal Perks loyalty program, the addition of digital personalized offers, and improving the overall convenience of delivery and pick up options. This investment will continue to strengthen the brand's digital channels that now generate ~$900M of annual system-wide sales in the U.S.  

" Royal Reset " Modernization Investment:

The Burger King $250M investment plan will include two important components. The first involves investing $50M of capital over the next two years alongside a comparable co-investment from Franchisees in a restaurant refresh program touching ~3,000 restaurants across restaurant technology, kitchen equipment, and building enhancements. These investments are designed to ensure our restaurants are ready to deliver an exceptional Guest experience as we work to drive traffic back to the system aided by our menu enhancements and Fuel the Flame advertising investment.

In addition, Burger King is launching a Royal Reset remodel program that provides access to $200M of funding for ~800 restaurant remodel projects over the next two years. As part of this program, the company is changing its incentive structure, which has historically focused on advertising and royalty rate discounts for up to seven years. The Royal Reset remodel program is designed to improve returns on capital for our Franchisees by providing more substantial baseline incentives, access to additional contributions in exchange for a higher royalty rate election, and funding of these incentives in upfront cash at the time of remodel completion. The program will also offer greater financial support to better operators, adding further incentive for Franchisees to improve operations across the system.

The Royal Reset remodel program represents a shift toward higher quality remodels and creates a viable path toward modernizing the system. Through a more thoughtful approach and increased funding, we are establishing support for our Franchisees to address their most important investments and lay the foundation for sales and profitability growth in the years to come. This will be the first step toward a more consistent, long-term cadence of portfolio reimaging that is focused on smarter investments and executing with quality to drive sales growth and attractive returns on capital for both Burger King and its Franchisees.

We have historically maintained a reimaging program which has generated average year one sales uplifts of approximately +12% with sustained outperformance in comparable sales relative to non-remodeled restaurants of approximately 2% (1). While the historical sales uplift performance from prior reimaging programs is encouraging, we are focused on enhancing these results through improved project selection and more targeted scope management. We believe this new approach over the next two years will generate the momentum needed to transition into a sustainable reimaging program that reverts to more normalized capital contributions from Burger King in 2025 and beyond.

The Burger King contributions from the Royal Reset remodel program will be accounted for as royalty credits and recognized through our income statement over the life of the new Franchise Agreements, which will be up to 20-years. Given the long duration of the royalty credit amortization in our income statement versus the near-term benefits of royalty rate increases and sales uplifts from modernization, we do not expect any materially negative impact to the income statement from this program. If we are successful in generating sales uplifts consistent with historical experience or better, we expect the program will generate a positive return on our capital and be accretive over time.

Operational Excellence:

The Burger King U.S. brand has substantially expanded its operations team and is intensely focused on creating a culture of " Repeatable Precision" at each restaurant, and improving the brand's employee value proposition to assist Franchisees to attract and retain valuable Team Members. Over the past year, the brand has worked closely with Franchisees to simplify menu items and restaurant operations, resulting in four consecutive quarters of improvements in key operating metrics and Guest satisfaction surveys. In early 2023, Burger King will host dozens of " Royal Roundtables" with restaurant managers and Franchisees across the U.S. to educate and energize restaurant teams as they implement meaningful operational changes within their restaurants.

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Burger King Mission and Vision Statement Analysis

Introduction

The purpose and vision statements of Burger King emphasize the necessity of effectively planning business with important factors to ensure long-term success. This company has fought its way through the hurdles that come with operating during one of the most competitive industries, the service industry, to become a leading brand for over half of a century. A mission statement aims to outline the task that a company must do to achieve its long-term objectives.

Burger King's mission statement focuses on providing consumers with the good best value for money through competitive prices and quality service. The vision statement, which provides a company's road map to a planned future, is closely connected. In this scenario, Burger king's vision statement displays the company's desire to become a high-quality service provider in the industry.

Mission Statement

"Offer fairly priced excellent cuisine, served fast, in beautiful, clean settings," says Burger King's goal statement. This mission statement outlines the types of outcomes that may be expected from the company. The following are the primary components of this mission statement in terms of Burger King's business:

• Reasonable prices
• Food of high quality
• Service that is quick
• Aesthetically pleasing and spotless surroundings

Burger King must adhere to the elements in its mission statement to attain the top position specified in its vision statement. The statement of vision demonstrates that it employs market-based rates to attract clients. Burger King's key selling feature, on the other hand, is the quality of its cuisine and its delivery. Customers return to Burger King restaurants because of the ambiance created by the settings. These qualities may be seen in nearly every one of the company's restaurants across the world. As a result, Burger King's mission statement forms the foundation for the company's price, quality, and facility design.

Vision Statement

"To be the most lucrative QSR business, with a strong franchise structure and wonderful employees, offering the tastiest burgers in the world," says Burger King's vision statement. The statement stresses the firm's position of leadership as a role model to follow of the industry due to its globally recognized excellence. Burger king's vision statement indicates that the firm aspires to be the market leader in fast-casual (fast food) restaurants

Burger King employs a franchise structure to expand, according to the goal statement. As a result, Burger King's vision statement describes the character of the company and its goal of worldwide market domination.

Core Values

"Teamwork and families, competence and tolerance" are among Burger King's key principles. The following are the aspects of the core values.

Creating a society of 'talented individuals,' as Burger King calls it, can only happen in the context of collaboration and excellent relationships. In all of its activities, the corporation also prioritizes achieving all criteria as a symbol of quality. Burger King's ideals, when combined with respect, ensure that the company is well-positioned to be the finest in the world. Burger King places a high priority on teamwork and family since they want their staff to feel like they are part of a team working collaboratively with a group. They achieve this by organizing entertaining activities for their team to attend.

Burger King Mission and Vision Statement Analysis Mind Map

Burger King's vision and mission statements indicate that the corporation aspires to be the market leader in fast service restaurants. McDonald's now retains the #1 spot. Burger King employs a franchise structure to expand, according to the vision and mission statement. To attract one of the largest market shares in the business, Burger King has been appointing excellent staff and are serving the best quality burgers. As a result, Burger King's vision and mission define the company's essence and its path to worldwide market supremacy.

Key Takeaways

The mission statement of Burger King is an example of a basic business mission statement based on fundamental principles. One of the key distinctions between a company's mission statement and an individual's mission statement is that a company will be focusing on individual values and then provide actions and accomplish those values, whereas an employee's mission statement will typically focus solely on beliefs or feelings.

Burger King prioritizes cooperation and family as core principles to foster a good work environment for its workers. Throughout its existence, Burger King has been involved in several disputes. That most of these disputes have erupted as a consequence of unfavorable publicity or worries about food safety. Just like this mind map, you can easily make the Mission and Vision Statement Analysis Template without much effort and aesthetically pleasing. All you need to do is pick up the template and edit it according to your details, and you'll be good to go.

The best way to show what your company stands for is a mind map. A well-made mind map can capture people's attention. Just like the example above, you can also make your own company's mind map with EdrawMind. They provide one of the best services and pre-built templates for you to choose from and have your mind map ready without any hustles and effort.

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Burger King SWOT Analysis

This SWOT analysis of Burger King assesses the internal and external strategic factors affecting the company’s business performance and positioning. Burger King’s position as one of the biggest players in the quick-service or fast-food restaurant industry is partly based on the strategic fit shown in this SWOT analysis. The SWOT analysis model examines the strengths, weaknesses, opportunities, and threats most significant to the firm. As a foodservice business, Burger King uses its strengths to compete with other multinational firms, like McDonald’s , KFC, Wendy’s , Subway , and Arby’s, as well as Starbucks , Dunkin’, and Tim Hortons. Also, the company must consider the threats and risks linked to the global fast-food restaurant market. This SWOT analysis indicates that Burger King will remain one of the major players in this market.

This SWOT analysis of Burger King indicates the importance of product diversification, quality enhancement, and product innovation. These considerations can bring business operations closer to satisfying Burger King’s mission statement and vision statement . The SWOT factors (strengths, weaknesses, opportunities, and threats) determine the options for ensuring success in the foodservice market. In this SWOT analysis, the results of the internal analysis (strengths and weaknesses) and external analysis (opportunities and threats) identify issues relevant to the fast-food company’s strategies. The external factors in the PESTLE/PESTEL analysis of Burger King relate to the industry environment involving the opportunities and threats in this SWOT analysis.

Burger King’s Strengths (Internal Factors)

The restaurant company’s strengths are based on business capabilities. This part of the SWOT analysis determines the internal strategic factors that create competitive advantages, which typically equate to the business capacity for further development and the multinational growth of the quick-service restaurant chain. The following are Burger King’s strengths:

• Strong brand image of Burger King’s service, food, and beverage
• Strong market presence based on high penetration of the international foodservice market
• Moderate differentiation of food and beverage products

Burger King is one of the strongest brands in the industry. This condition makes it easier for the company to open new restaurants and introduce new food and drinks. The strong market presence based on high market penetration is a strength pertaining to the large number of Burger King restaurants around the globe. Also, the company’s moderate differentiation (e.g., flame-grilled burgers) is a strength that imparts uniqueness to the company and some of its products. This differentiating factor is a result of Burger King’s generic strategy for competitive advantage and accompanying intensive growth strategies . In this part of the SWOT analysis, Burger King’s strengths show the importance of branding and market penetration.

Burger King’s Weaknesses (Internal Factors)

The foodservice company’s weaknesses are linked to its business model and general strategic approaches. The internal strategic factors that reduce or limit the firm’s effectiveness are identified in this part of the SWOT analysis. The following are Burger King’s weaknesses:

• Imitable fast-food restaurant business model
• Limited product mix
• Limited control on Burger King franchisees

Even though Burger King has moderate differentiation, one of its weaknesses is that its business model and products can be imitated. For example, other firms can offer grilled burgers. Also, this SWOT analysis of Burger King identifies the limited product mix as a weakness because it prevents the quick service restaurant chain from attracting customers who are looking for more options. Whopper sandwiches and other menu items are attractive, but the overall variety of the food and beverage offerings remains limited. Furthermore, even though Burger King grows internationally through franchising, the franchising model is a weakness because it limits corporate control on franchisees’ approaches to management. This franchise system is a factor in the implementation of the distribution strategy in Burger King’s marketing mix or 4Ps . In this part of the SWOT analysis, the limited product mix is a weakness that the fast-food business can readily address.

Opportunities (External Factors)

Burger King’s opportunities present options for business growth and development in the fast-food restaurant industry. This part of the SWOT analysis shows the external strategic factors that the firm can use to improve its performance. The following are Burger King’s opportunities:

• Product diversification or product mix widening
• Market development for food and beverages
• Stronger competitiveness based on service quality improvement

Burger King has an opportunity to widen its product mix by adding new product lines to attract more customers. Also, the company can establish new operations as part of market development to increase revenues and gain a larger share of the foodservice market. Moreover, the restaurant chain has an opportunity to increase service quality as a way of further differentiating its business from competitors. Burger King’s operations management approaches and productivity measures can support efforts for this opportunity on quality enhancement. In this part of the SWOT analysis, Burger King’s opportunities require new strategies, especially in product diversification and market development.

Threats (External Factors)

The threats to the quick service restaurant chain emphasize market conditions. The external strategic factors that limit or reduce business performance are shown in this part of the SWOT analysis. The following are the main threats to Burger King:

• Aggressive competition with small, medium, and large foodservice businesses
• Healthy lifestyles trend

Aggressive competition is a threat in the fast-food industry, considering other multinational restaurant chains. The saturated market imposes strong competitive pressure on the business, as explained in the Five Forces analysis of Burger King . Also, the company’s business model is imitable, leading to the threat of imitation by new entrants in the fast-food market. Additionally, the healthy-lifestyles trend is a threat because it tends to criticize unhealthy diets frequently associated with fast-food companies. This external factor relates to Burger King’s stakeholder management and corporate social responsibility to consumers. Based on this part of the SWOT analysis, Burger King can improve its food and service to address the threats of aggressive competition and the healthy-lifestyles trend.

Recommendations – Burger King SWOT Analysis

Burger King’s focus is on market penetration, with a considerable degree of product innovation. However, based on this SWOT analysis, the company may need to adjust some of its strategies to maintain competitiveness in the quick service restaurant market. The following strategic adjustments are recommendations for addressing some of Burger King’s most significant concerns:

• Diversify or widen the product mix to address current product-mix limitations.
• Increase service quality at Burger King restaurants.
• Improve food and drinks to address changing consumer preferences in favor of healthy lifestyles.
• Burger King – About Us .
• Burger King Franchising – International .
• Dandis, A. O., Wallace-Williams, D. M., Ni, A. K., Wright, L. T., & Abu Siam, Y. I. (2023). The effect of brand experiences and relational benefits on loyalty in the fast-food restaurants. The TQM Journal, 35 (7), 2028-2051.
• Restaurant Brands International Inc. – Form 10-K .
• Taherdoost, H., & Madanchian, M. (2021). Determination of business strategies using SWOT analysis; Planning and managing the organizational resources to enhance growth and profitability. Macro Management & Public Policies, 3 (1), 19-22.
• Vlados, C. (2019). On a correlative and evolutionary SWOT analysis. Journal of Strategy and Management, 12 (3), 347-363.
• 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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The story behind the fast-growing sandwich chain cheba hut, most customers think restaurants are getting expensive, burger king is investing $400m to revitalize its u.s. business.

Burger King on Friday said it would invest $400 million in marketing, remodels and upgraded technology over the next two years, part of a broad-scale effort to revitalize its U.S. business called “Reclaim the Flame.”

The Miami-based burger chain, which has fallen behind its top competitors in recent years, said it would invest $150 million in advertising and digital investments.

The company is also planning to invest $250 million in restaurant technology, kitchen equipment, building enhancements, remodels and relocations.

Those investments will come along with franchisee efforts to remodel the chain’s restaurants and are designed to improve the guest experience and get people back into its restaurants. Burger King said franchisees representing 93% of its 7,000 U.S. locations have endorsed the plan, presented during the company’s annual franchise convention last week.

“It’s not just a marketing plan,” Tom Curtis, president of Burger King North America, said in an interview. “It’s a marketing plan with support around operations and restaurant image. We’ve hit on all pillars of what it takes to run great restaurants.”

Burger King's plan will encourage operators to remodel units. / Photo courtesy of Burger King.

( Read about Burger King's sales challenges here .)

Burger King has been working to develop its plan in recent months after the company’s sales fell behind those of rivals McDonald’s and Wendy’s—the latter of which surpassed Burger King as the country’s second-largest burger chain two years ago. Burger King has been among the slowest major quick-service chains to recover from the pandemic.

Those challenges were accentuated by the failure of the chain’s upgraded chicken sandwich last year, called the Ch’King, which didn’t generate the sales lift the company expected—even as rivals McDonald’s and KFC both enjoyed strong years based on their chicken sandwiches.

The company overhauled much of its executive team, elevating Curtis into the president’s role. Curtis came to the chain last year from Domino’s, where he specialized in operations.

Burger King’s “Reclaim the Flame” plan is a broad-based strategy to improve the company’s brand positioning, menu and operations.  The strategy is similar to what Burger King sister chain Tim Hortons accomplished in Canada , featuring an overhauled executive team followed by corporate investment in marketing along with operational improvements, remodels and technology.

Those efforts have helped improve that chain’s sales in its home market. “It’s a similar blueprint to what we’ve done at Tim Hortons in Canada,” Jose Cil, CEO of Burger King parent Restaurant Brands International, said in an interview. “We built a good team and we’ve invested behind the plan in our ad fund.”

( Read about Tim Hortons’ comeback here .)

The company will add $120 million to its U.S. ad fund, which will increase advertising spending by 30% per year. Franchisees have also agreed to increase their ad fund contribution by 50 basis points through 2028, so long as they meet certain profitability thresholds. Burger King will spend another $30 million through 2024 to support the company’s mobile app, loyalty program and improve delivery and pickup options.

The $250 million will include $50 million that will come alongside co-investment from franchisees to refresh some 3,000 restaurants and add technology and equipment and make building improvements.

Burger King's interior remodel. / Photo courtesy of Burger King.

The “Royal Reset” remodel program also provides $200 million in funding for 800 remodels over the next two years.

The company is changing its incentive structure to encourage operators to remodel, shifting away from traditional discounts on ad fund and royalty contributions to what Burger King says are more “substantial baseline incentives,” including upfront cash as remodels are completed. Operators can also get additional contributions from the company in exchange for a higher royalty rate.

The program also provides greater support for better operators, which the company says will provide an incentive for franchisees to improve operations. Burger King says the program “represents a shift toward higher-quality remodels and creates a viable path toward modernizing the system.”

Burger King says its traditional remodels generate a 12% sales lift in its first year coupled with sustained outperformance of about 2% compared with non-remodeled restaurants. The company, however, said it is focused on “enhancing these results” over the next two years, which it believes will result in a more sustainable reimaging program over time.

As for the menu, Burger King says it plans to focus on its premium Whopper and flavor extensions. It is also planning more chicken sandwiches—the chain is replacing its Ch’King with the Royal Crispy Chicken, which is easier to make and comes with more unique flavor combinations.

The company also said it is developing other products such as burgers, breakfast, beverages, snacks and plant-based items. It is also working on providing “strong everyday value.”

“What gave us confidence, gave me confidence, to make a historic investment in the Burger King system in the U.S. is the quality of team and leadership and the level of engagement from franchisees,” Cil said. “This is not a plan that we made in a lab in Miami. This team has been on the road a long time.”

UPDATE: This story has been updated to add new information.

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Burger King to invest $400 million in growth plan

MIAMI — Burger King has released the details of its $400 million investment plan designed to accelerate sales growth and increase franchisee profitability.

The two-year “Reclaim the Flame” plan will refresh the company’s brand through increased advertising and restaurant modernization investments, in collaboration with its franchisees.

“We are relentlessly pursuing a better experience for our guests,” said Tom Curtis, president of Burger King’s North American operating unit. “This is the driving force behind all the initiatives that we are executing collaboratively with our franchisees. Our plan is focused on a few important priorities — operational excellence, refreshed image, and enhanced marketing — that when put together, provide a superior experience for our guests." 

Approximately $120 million will go toward the company’s advertising fund, an annual increase of roughly 30%. An additional $30 million will go toward improving Burger King’s app integration, which represents nearly $900 million of the company’s yearly sales in the United States.

The remaining $250 million will be divided between modernizing restaurant technology, kitchen equipment and building enhancements ($50 million), and remodeling projects ($200 million).

As part of the remodel program, Burger King also will change its incentive structure to improve capital returns for franchisees. Changes include increased baselines incentives, additional contributions access in exchange for higher royalty rates and upfront cash incentives following remodeling.

“Our $400 million investment into the Burger King US system represents a substantial deployment of capital toward important marketing and image investments aimed at accelerating our sales growth and modernizing our iconic brand across the US,” said Matt Dunnigan, chief financial officer at Restaurant Brands International.

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Burger King closes 6 more restaurants amid plan to shut down up to 400 locations this year

• Earlier this year, Burger King said it would close up to 400 restaurants this year.
• Dozens of stores have closed since spring, including six more in recent weeks.
• The chain is targeting "older and lower performing restaurants" for closures, the company CEO said. 

More Burger King restaurants are closing, according to various news outlets.

The latest restaurant closures will be in Florida, New York, and Nebraska. Franchisees announced 26 store closures in Michigan in March and 27 closures across seven states, including in Nabraska, Utah, and Minnesota in April.

The recently closed locations in Nebraska have been open for at least 40 years and were run by the same franchisee who closed 27 stores in the spring, according to the Lincoln Journal Star.

In Long Island, New York, the closed Burger King restaurant is expected to be replaced by a McDonald's, according to GreaterLongIsland.com .

Burger King could not be reached for comment.

In May, Joshua Kobza, CEO of Burger King's parent company, Restaurant Brands International, said the chain would close up to 300 to 400 restaurants during the fiscal year. That would be equal to the number of closures the struggling chain closed during the pandemic, he said.

"I would emphasize that there is a fair degree of uncertainty regarding exact numbers, and this will depend, to some extent, on the pace of recovery in the business, which we've already begun to see," Kobza said in May. He became CEO in March, replacing longtime CEO José Cil.

In September 2022, Burger King announced a $400 million turnaround plan that called for the chain to upgrade 800 of the company's top-performing restaurants.

During its latest earnings call last week, the chain said restaurant traffic at Burger King was flat as the company continued to close underperforming and aging restaurants.

"We closed older and lower performing restaurants to support a more modern system increasingly run by better operators," Kobuza said.

Here's a list of the closed stores:

210 E. State Street, Jacksonville

1981 Kings Road, Jacksonville

Source: Florida-Times Union

32 Montauk Highway, Long Island

1448 N. 48th Street, Lincoln

5940 Havelock Avenue, Lincoln

2805 South 48th Street, Lincoln

Watch: The rise and fall of Subway, the world's largest fast-food chain

• Main content

Press Release

Restaurant brands international, burger king® announces "reclaim the flame" plan to accelerate growth in the u.s..

Company investment of $400M over two years will increase advertising firepower; drive higher quality restaurant enhancements and remodels; and support ongoing technology and digital investments

Plan developed in collaboration with Burger King Franchisees and endorsed by more than 93% of U.S. Restaurants

MIAMI, FL -Sept. 9, 2022 /CNW/ -  Burger King ®  Company ("Burger King," "BK," "Company," "Brand") today shared the details of its " Reclaim the Flame" plan to accelerate sales growth and drive Franchisee profitability. The plan was built in collaboration with Franchisee leaders from across the country and was shared with all U.S. Franchisees at its annual convention this week by Tom Curtis, President of Burger King North America.

The plan includes Burger King investing $400M over the next two years, comprised of $150M in advertising and digital investments to "Fuel the Flame" and $250M for a " Royal Reset" involving restaurant technology, kitchen equipment, building enhancements and high-quality remodels and relocations. This investment will work to enhance ongoing Franchisee investments to modernize the Burger King restaurant portfolio, and when combined with our brand re-positioning plan, menu enhancements and focus on operational excellence, will help drive our overarching goal of improving the Guest experience and attracting more traffic back to the brand over time.  

Burger King Franchisees representing more than 93% of all U.S. restaurants have endorsed the plan and have agreed to co-invest in increased advertising firepower over the coming years. These corporate investments are in addition to Burger King recently expanding its field team to provide increased support to Franchisees as they continue improving restaurant-level profitability and execution.

Jose Cil, CEO of Restaurant Brands International ("RBI"), commented on the announcement: "Over the past year, Tom has built a talented leadership team that has worked collaboratively with Burger King Franchisees to develop a multi-year plan to drive the performance of the system. We believe now is the time to make a significant investment to accelerate the work given the quality of the team, focus of the plan, commitment of our Franchisees and the opportunity that clearly exists for our iconic brand to Reclaim the Flame and be the first choice for a high-quality meal, an exceptional experience, and a great value."

Tom Curtis, President of Burger King North America, added: "We are relentlessly pursuing a better experience for our Guests. This is the driving force behind all the initiatives that we are executing collaboratively with our Franchisees. Our plan is focused on a few important priorities — operational excellence, refreshed image, and enhanced marketing — that when put together, provide a superior experience for our Guests." 

"I'm very proud and thankful that our Franchisees have stepped up once again to invest in our performance together, reflecting the genuine partnership and mutual respect we have built between the Franchisor and Franchisees. Ultimately, the success of this Reclaim the Flame plan comes down to execution at the restaurant level and we are so fortunate to have Franchisees who love this brand and are working closely with us to focus on the right priorities. I believe in this team, this plan, and a bright future as we evolve and enhance our Guest experience and drive profitable growth for the business."

Matt Dunnigan, Chief Financial Officer of RBI, commented: "Our $400M investment into the Burger King U.S. system represents a substantial deployment of capital toward important marketing and image investments aimed at accelerating our sales growth and modernizing our iconic brand across the U.S. In 2023 and 2024, these investments are expected to have an average annual impact to adjusted EPS of approximately ($0.10) to ($0.12), before considering benefits from any potential sales improvements. In 2025 and beyond, we expect the impact to be accretive to adjusted EPS as our advertising investments conclude and we realize the long-term sales benefits of our Reclaim the Flame initiatives and increased advertising contributions from our system."

The Reclaim the Flame plan is designed with targeted initiatives that will work in concert with one another to improve all the fundamental aspects of Guest experience: perception of the brand; high-quality menu offerings at everyday value; engaging and relevant advertising; high quality modernization of our restaurants; and an all-around improved service and execution.  

Burger King is refreshing and modernizing its brand, adding meaning and relevance to historical brand anchors like 'Flame Grilling' and 'Have it Your Way', while also introducing new brand elements to broaden its attraction for a younger and more diverse base of Guests.

Burger King has built a multi-year menu roadmap that is Guest-led and brand focused. Burger King will invest in premium branding to reaffirm the elevated position of its flame-grilled Whopper® and is developing new flavor extensions, while also focusing on Team Member training and rolling out kitchen enhancements to ensure exceptional execution at the restaurant.

The brand is also building a destination worthy Chicken Sandwich portfolio and has launched the Royal Crispy Chicken — a premium chicken sandwich with unique flavor variations built around a simplified menu and improved operations — resulting in a better Guest experience. This menu addition complements the long-standing and loved Original Chicken Sandwich — allowing the brand to strongly compete in the growing chicken sandwich market while still maintaining its focus on growing its core burger category.

Burger King is currently developing innovative products to accelerate industry leadership in burgers, breakfast, beverages, snacking, and plant-based products.  In addition, the brand will continue to provide a strong everyday value offering in its menu, especially as the cost of food at home continues to face inflationary pressures.

Given our recent momentum and confidence in our multi-year plan, we believe now is the right time to significantly enhance our advertising firepower. In a historic agreement with its Franchisees, Burger King will invest $120M in its U.S. advertising fund over the next two years to grow traffic, accelerate sales growth and amplify the fundamental advancements we are making to the Guest experience. The Burger King advertising investment represents an annual increase of approximately 30% to the brand's media purchasing firepower, inclusive of advertising efficiencies we expect to achieve through our ongoing partnership with our new media agency. Following the investment period in 2023 and 2024, participating Franchisees have agreed to increase their advertising fund contributions by 50 basis points through 2028 if certain profitability thresholds are met, which we plan to share an update on annually. This plan has received the endorsement of Franchisees representing more than 93% of the system, all of whom have agreed to the new Fuel the Flame co-investment program over the past two months.

In addition, Burger King will invest $30M through 2024, in excess of the digital fees collected from Franchisees, to support our Guests ease of ordering on the Burger King app which includes integrated payment processing, enhancing the Royal Perks loyalty program, the addition of digital personalized offers, and improving the overall convenience of delivery and pick up options. This investment will continue to strengthen the brand's digital channels that now generate ~$900M of annual system-wide sales in the U.S.  

The Burger King $250M investment plan will include two important components. The first involves investing $50M of capital over the next two years alongside a comparable co-investment from Franchisees in a restaurant refresh program touching ~3,000 restaurants across restaurant technology, kitchen equipment, and building enhancements. These investments are designed to ensure our restaurants are ready to deliver an exceptional Guest experience as we work to drive traffic back to the system aided by our menu enhancements and Fuel the Flame advertising investment.

In addition, Burger King is launching a Royal Reset remodel program that provides access to $200M of funding for ~800 restaurant remodel projects over the next two years. As part of this program, the company is changing its incentive structure, which has historically focused on advertising and royalty rate discounts for up to seven years. The Royal Reset remodel program is designed to improve returns on capital for our Franchisees by providing more substantial baseline incentives, access to additional contributions in exchange for a higher royalty rate election, and funding of these incentives in upfront cash at the time of remodel completion. The program will also offer greater financial support to better operators, adding further incentive for Franchisees to improve operations across the system.

The Royal Reset remodel program represents a shift toward higher quality remodels and creates a viable path toward modernizing the system. Through a more thoughtful approach and increased funding, we are establishing support for our Franchisees to address their most important investments and lay the foundation for sales and profitability growth in the years to come. This will be the first step toward a more consistent, long-term cadence of portfolio reimaging that is focused on smarter investments and executing with quality to drive sales growth and attractive returns on capital for both Burger King and its Franchisees.

We have historically maintained a reimaging program which has generated average year one sales uplifts of approximately +12% with sustained outperformance in comparable sales relative to non-remodeled restaurants of approximately 2% (1 ) . While the historical sales uplift performance from prior reimaging programs is encouraging, we are focused on enhancing these results through improved project selection and more targeted scope management. We believe this new approach over the next two years will generate the momentum needed to transition into a sustainable reimaging program that reverts to more normalized capital contributions from Burger King in 2025 and beyond.

The Burger King contributions from the Royal Reset remodel program will be accounted for as royalty credits and recognized through our income statement over the life of the new Franchise Agreements, which will be up to 20-years. Given the long duration of the royalty credit amortization in our income statement versus the near-term benefits of royalty rate increases and sales uplifts from modernization, we do not expect any materially negative impact to the income statement from this program. If we are successful in generating sales uplifts consistent with historical experience or better, we expect the program will generate a positive return on our capital and be accretive over time.

The Burger King U.S. brand has substantially expanded its operations team and is intensely focused on creating a culture of " Repeatable Precision" at each restaurant, and improving the brand's employee value proposition to assist Franchisees to attract and retain valuable Team Members. Over the past year, the brand has worked closely with Franchisees to simplify menu items and restaurant operations, resulting in four consecutive quarters of improvements in key operating metrics and Guest satisfaction surveys. In early 2023, Burger King will host dozens of " Royal Roundtables" with restaurant managers and Franchisees across the U.S. to educate and energize restaurant teams as they implement meaningful operational changes within their restaurants.

Founded in 1954, the Burger King® brand is a global fast-food hamburger chain known for food quality and value as the only place guests can get the iconic flame-grilled Whopper® sandwich. The Burger King system operates more than 18,700 locations in more than 100 countries and U.S. territories. Almost 100 percent of Burger King restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. To become a member of our Royal Perks loyalty program, please visit www.bk.com/signup . To learn more about the Burger King brand, visit the Burger King brand website at www.bk.com or follow us on Facebook, Twitter, Instagram and TikTok. 

Restaurant Brands International Inc. is one of the world's largest quick service restaurant companies with over $35 billion in annual system-wide sales and over 29,000 restaurants in more than 100 countries. RBI owns four of the world's most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS®. These independently operated brands have been serving their respective guests, franchisees and communities for decades. Through its Restaurant Brands for Good framework, RBI is improving sustainable outcomes related to its food, the planet, and people and communities.

Investors: [email protected] Media: [email protected]

Forward-Looking Statements This press release includes forward-looking statements, which are often identified by the words "may," "might," "believes," "thinks," "anticipates," "plans," "expects," "intends" or similar expressions and reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements include statements regarding: (i) the amount, timing and use of the additional investments related to digital, advertising and restaurant enhancements into the Burger King U.S. system and ability to achieve advertising efficiencies; (ii) the expected financial impacts of the Reclaim the Flame investments on RBI's results of operations, including our expectations that the costs of the plan will primarily impact 2023 and 2024 adjusted EPS and that the plan will be accretive in 2025 and beyond; (iii) our expectations regarding the amount and timing of Franchisee co-investments in the Reclaim the Flame program; (iv) the ability of the Reclaim the Flame plan to drive profitable growth for our Franchisees and the Burger King system, as well as our belief that the Royal Reset modernization investments will result in Franchisees substantially enhancing sales growth and their return on capital; (v) our intent to provide annual updates on future Franchisee contributions to the advertising fund; (vi) our belief that the Royal Crispy Chicken sandwich positions the Burger King brand to strongly compete in the chicken sandwich market; (vii) our belief that the implementation of the Reclaim the Flame plans will improve the experiences of our Guests and Team Members; and (viii) the anticipated accounting treatment of the investments associated with the Reclaim the Flame program.

The factors that could cause actual results to differ materially from our expectations are detailed in filings of RBI with the U.S. Securities and Exchange Commission and with the securities regulatory authorities in each province and territory of Canada, such as its annual and quarterly reports and current reports on Form 8-K and include the following: (1) risks related to RBI's ability to successfully implement the Reclaim the Flame plan and the ability of participating Franchisees to meet the profitability thresholds; (2) risks related to the franchised business model; (3) risks related to technology and the ability to successfully implement digital initiatives; (4) risks related to ownership and leasing of properties by us and our Franchisees; (5) risks related to our Franchisees financial stability and their ability and willingness to access and maintain the liquidity necessary to co-invest in the restaurant modernization initiatives; (6) risks related to the ability of the Burger King Franchisees to compete in an intensely competitive industry; and (7) changes in accounting, tax and other laws and regulations or interpretations thereof. Other than as required under U.S. federal securities laws or Canadian securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, change in expectations or otherwise.

SUPPLEMENTAL: QUESTIONS AND ANSWERS

Fuel the Flame  Advertising Investment

How much incremental investment per quarter?

• Burger King U.S. will pulse investments behind key initiatives as it sees opportunities in the market to drive sales. 
• For competitive reasons, Burger King U.S. does not intend to signal in advance in which quarters or channels it will make incremental investments.

How will the Burger King advertising investment impact the income statement?

• The incremental investment will be reflected in the BK Segment Results and Consolidated Statements of Operations under "Advertising expenses and other services".
• The expense will be recognized in the period spent.

How will the Franchisee co-investment work for incremental advertising funds?

• Burger King has committed to invest $120M in advertising from Q4'22 – Q4'24.
• If system average EBITDA is in-line with 2019 levels by December 2024, then Franchisees will invest an incremental 50 basis points of sales into the advertising fund for 2025 and 2026.
• Following 2026, this 50-basis point investment will continue assuming reasonable growth in system average EBITDA has occurred.
• As of September 9, 2022, over 93% of the system have signed the new Franchise spending agreement to participate in the Fuel the Flame co-investment.

Royal Reset  Refresh Program

What is the anticipated timing and scope of the $50M near-term Royal Reset Refresh Program initiative?

• Burger King expects to deploy $50M over the next 24 months which will be spent on restaurant technology.
• The investment will target restaurants that would benefit most significantly and will be done in partnership with Franchisees who match the investment, through spending on kitchen equipment and building enhancements, resulting in approximately a $100M total investment in the system.

How will the $50M restaurant refresh program impact RBI's financial statements?

• Inc ome Statement Expenses : The Royal Reset refresh program investment will be capitalized and recognized in Depreciation and Amortization, which the company expects will carry an average depreciable life of approximately 5-7 years.
• Statement of Cash Flows : The investment will be accounted for as capital expenditure and appear under "Payments for property and equipment" under "Cash flows from investing activities".

Royal Reset  Remodel Program

What is the anticipated timing and scope of the $200M Royal Reset remodel program?

• The Royal Reset remodel program is targeting approximately 800 high-quality projects from 2023 to 2025, supported by a bottoms-up approach focused on maximizing returns on investment.
• We expect to formalize commitments for all $200M by the end of 2024, with the cash largely deployed by the end of 2025 given project lead times.
• We expect the significant majority of remodels under the Royal Reset program to be completed in 2023 and 2024, supported by benefits from the Fuel the Flame and Royal Reset refresh programs.
• Following the completion of the program, we expect to revert to more normalized capital contributions from Burger King in 2025 and beyond. 

How will the size of the Burger King remodel investments be determined? 

• Scope of remodel: Ranges from lower capital intensity upgrades costing ~$500K to more capital intense and comprehensive rebuilds costing ~$1.8M.
• Quality of operations: Access to greater funding for Franchisees with better operations as determined by their 'Franchisee Success Score', tied to our recently revamped operational success program.
• Royalty rate increases: Franchisee in good standing will have access to greater relative levels of funding should they opt for an increased royalty rate between our standard 4.5% and a maximum of 6.0%.

How will the Royal Reset remodel investments impact RBI's financial statements?

• A royalty credit will be recognized over the franchise agreement period of up to 20-years, as a contra revenue item in the "Franchise and property revenues" line of the income statement.
• Franchisees participating in the program may elect for an increased royalty rate in exchange for a larger capital contribution which, all else being equal, would result in increased Franchise & property revenue.
• Given the long duration of the royalty credit amortization in our income statement versus the near-term benefits of royalty rate increases and sales improvements from modernizing the restaurants, we do not expect any materially negative impact to the income statement from this program.
• If we are successful in generating sales uplifts consistent with historical experience or better, we expect the program will generate a positive return on our capital and be accretive over time.  
• Statement of Cash Flows: The remodel investment will appear on the cash flow statement as a change in "Other long-term assets and liabilities" under "Cash flows from operating activities" at the time of remodel completion.

What is the difference between this incentive structure and prior remodel programs?

• Prior remodel programs primarily identified opportunities based on franchise agreement expiration schedules rather than identifying the highest potential return projects.
• In addition, unlike prior programs where Franchisees were incentivized with royalty rate and advertising fund discounts over up to seven years, the Royal Reset remodel program will deliver 100% of our contribution at the time of remodel completion and provide access to greater levels of funding as compared to past programs.
• The Royal Reset remodel program represents a shift toward higher quality remodels and greater support for Franchisees to amplify our system modernization. Through more refined site and scope selection, along with increased funding, Franchisees can substantially enhance their restaurant image with strong returns on capital to lay the foundation for sales and profitability growth in the years to come.
• This remodel investment program is also expected to provide Burger King U.S. with a positive return on capital over time through sales improvements and higher average royalty revenue. 

What level of sales uplift do you expect from Royal Reset remodels?

• Historically, remodeling efforts have generated average year one sales uplifts of approximately +12% 2 .
• After the initial sales uplifts, remodeled restaurants have also experienced sustained outperformance in comparable sales relative to non-remodeled restaurants of approximately 2%.
• While we believe the historical performance is encouraging, Burger King looks to build on this progress in future years through improved project selection and scope management. 

1 Uplift is based on a comparison of the sales at 499 modern-image restaurants as compared to restaurants in the same designated marketing area that had not been recently opened or remodeled.

2 Uplift is based on a comparison of the sales at 499 modern-image restaurants as compared to restaurants in the same designated marketing area that had not been recently opened or remodeled.

SOURCE Restaurant Brands International Inc.