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Transcript Burger Ki...ppt
Burger King’s 20/20
Remodel vs. McCafé
By
Bailey McEuen
Susan Kjos
Robin Knudtson
Trends
McDonald achieved the First Mover
Advantage
More Families dining at home
Fast Food Kitchens to Casual Dining
Going Green
Generation Y
Burger Kings 20/20 Design
Contemporary and industrial
design
Finishes that resemble brick and
concrete
Urban masculine design
LCD menu screens and rotating
flame chandeliers
New design give guests more
valuable restraint experience
through ….
Offers dining options
60 different locations worldwide
and 75 more to be open by end
of next year
Cost franchisees $300,000$600,000 to remodel
The New Whopper Bar
Create whole new
experience to create the
best service experience.
Introducing “Whopperistas”
Customize burgers with 22
different toppings.
-”Bars Favorite Lists”
Making locations more
accessible for
-implementation into new
markets through creating
their stand alone locations.
2009 Menu Comparison
McDonalds Mission
History:
A restaurant originally known for….
competitive advantages includes…
Started investing intensely in advertising and revamping
their image.
McCafé designed to offer customers affordable luxury.
Increase customer satisfaction through:
-Wifi
-Upscale Tables and Chairs
-orders served on signature dishes.
Old Competitors
include…
New Competitors
include…
Positives and Negatives to redesign
Positives:
Remodeled Burger
Kings: Increase in
profits of 12-15%
Completely rebuilt
branches:
Increase of up to 30%
Whopper bar emphasize
their “Have it your
way” moto.
Larger span of new
customers
$1 Billion in revenues
on McCafe alone over
a year
Negatives:
•Business mostly through
drive through will not be
affected by remodel.
•High costs in remodel
creates long term debt
for franchisee.
Rivals among competitors
Burger King’s effort to ENHANCE the
experience.
McDonald’s main strategy is to
use franchises to enter into
markets.
-25, 465 operated by
Franchisees
-6,502 operated by the
company
-In 118 countries
McDonalds Gross Profit
(March 31, 2009) $1.8 Billion
(June 30, 2009) $2.1 Billion
Burger King also uses the
same strategy to enter into
markets.
-10,496 operated by
franchisees
-1,429 operated by the
company
-In 73 Countries
Burger King Gross Profit
(March 31, 2009) $203 million
(June 30, 2009) $167.6 million
Which Restaurant do you prefer?
Sources
(2007, May 07). Papascott background on Mccafé. Retrieved from
http://www.papascott.de/archives/2007/05/07/ background-onmccafe/
(n.d.). McDonald’s Corporation. Retrieved from
http://www.hoovers.com/mcdonald's/--ID__10974--/free-cocompetitors.xhtml
Yahoo Finance, "MCD Yahoo Finance". Yahoo. Oct. 22, 2009
<http://finance.yahoo.com/q?s=MCD>.
Yahoo Finance, "BKC Yahoo Finance". Yahoo. Oct. 22, 2009
<http://finance.yahoo.com/q?s=BKC>.
King, Burger. "Burger King Corp.'s Bold New Global Restaurant
Design Takes Flight At Amsterdam's Schiphol Airport". Burger King.
Oct. 22, 2009 <http://www.bk.com/en/us/companyinfo/press/press-release1015.html>.
Jerry. "Environmentally Friendly Cars". Green Cars. Oct. 22, 2009
<http://environmentallyfriendlycars.org/>.