Burger King Beefs up Global Operations
James E. Payton
Columbia Southern University
Burger King Beefs up Global Operations
According to Daniels, Radebaugh, and Sullivan (2011), Burger King is the world’s largest chain of flame-broiled fast food restaurants. Its core competency is its flame-broiled burgers, whereas other fast food hamburger joints serve fried burgers or no burgers at all, Burger King offers the unique flame-broiled burgers with any options that a customer might like, consumers have the benefit of having a burger they cannot find elsewhere. Initially Burger King only sold burgers, fries, shakes, and sodas, but they have chosen to expand to offering chicken, fish, salads etc. Although they offer these extra items, …show more content…
Daniels et al. (2011) understood that this relationship should not change because about two- thirds of Burger King’s restaurants are in the United States, and its U. S. and Canadian operations accounted for 69 percent of its $ 2.54 billion revenue in fiscal 2009. Although the company began in 1954 by offering just burgers, fries, milk shakes, and sodas, the menu has expanded to include breakfast as well as various chicken, fish, and salad offerings. Nevertheless, burgers remain the mainstay of the company, and 2007 marked the 50th anniversary of the Whopper sandwich, which is considered Burger King’s signature product (Daniels et al., 2011).
Over time, especially since the company went public, Burger King has taken a more systematic approach toward restaurant expansion (Alva, 1994). While it still sees substantial growth opportunities within the United States, he thinks that Burger King sees the United States as a mature market for fast food, especially for hamburgers, in comparison with many foreign countries. In looking for new countries to enter, Burger King looks most favorably at those with large populations (especially of young people), high consumption of beef, availability of capital to franchisees for growth, a safe pro- business
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Burger King, however, has tried to keep up with changes in consumer demands for new and healthier products, as this organization has added salads and wraps to its menu offerings. McDonald’s added the McCafe and updated all of its restaurants recently, including adding free Wi-Fi at all of its U.S. locations to make its restaurants seem more like an upscale coffee shop than simply a fast food restaurant. Changes such as these have likely taken sales from organizations such as Burger King. To combat this, Burger King has fought back by increasing the size of its portions and sandwiches and has used couponing very aggressively. Burger King is also adding free Wi-Fi at all of its U.S. locations.