Burger King

Aug 28, 2020 | Report Announcements

Burger King’s well-conceived brand equity emphasizes flame grilling (over an open flame), highlighting a clear difference from griddling. The brand’s prominent burger platform (100% beef without fillers or preservatives) includes signature Whopper configurations and various “King” varieties. Its menu is bolstered by an upgraded chicken line and BK is testing a variety of products that can now be made on its new broiler. Further, popular meatless protein versions of signature menu items and healthful ingredient improvements are designed to expand the brand’s reach. The brand’s value position is strengthened by: an above-average value promotional mix; value offers laddered across every price point from $1 to $6; and new news generated by rotating products on its mix-and-match value platforms. Creative ads and strength in social media provide the brand with effective marketing solutions and enhanced customer experience reflects process/equipment improvements and tighter quality control initiatives. In any case, while annual comps have been positive from 2014 – 2019, it is notable that sales under-performance reflects the brand’s challenge to expand beyond its historical heavy QSR user orientation. Also, post-lockdown 1H20 comp under-performance may reflect the chain’s traditional heavy QSR user orientation (a demo which has been disproportionally impacted by unemployment). In conclusion, while Burger King is doing a solid job executing around the fundamentals, the brand must continue to find ways to expand its market reach towards new, more affluent consumers willing to pay for a good burger.

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