Burger King’s 20/20 RBurger King’s 20/20 Remodel vs. emodel vs.

McCafMcCafééBy By Bailey McEuenBailey McEuen

Susan KjosSusan KjosRobin KnudtsonRobin Knudtson

TrendsTrends

McDonald achieved the First Mover McDonald achieved the First Mover AdvantageAdvantage

More Families dining at home More Families dining at home Fast Food Kitchens to Casual Dining Fast Food Kitchens to Casual Dining Going GreenGoing Green Generation YGeneration Y

Burger Kings 20/20 DesignBurger 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 BarThe New Whopper BarCreate whole new Create whole new experience to create experience to create the best service the best service experience. experience.

--Introducing Introducing “Whopperistas”“Whopperistas”

--Customize burgers with Customize burgers with 22 different toppings. 22 different toppings.

-”Bars Favorite Lists”-”Bars Favorite Lists”Making locations more Making locations more accessible for accessible for

-implementation into -implementation into new markets through new markets through creating their stand creating their stand alone locations. alone locations.

2009 Menu Comparison 2009 Menu Comparison

McDonalds MissionMcDonalds Mission History: History: A restaurant originally known for…. A restaurant originally known for…. competitive advantages includes…competitive advantages includes… Started investing intensely in advertising and Started investing intensely in advertising and

revamping their revamping their imageimage.. McCafMcCafé designed to offer customers affordable é designed to offer customers affordable

luxury. luxury. Increase customer satisfaction through: Increase customer satisfaction through:

-Wifi -Wifi -Upscale Tables and Chairs-Upscale Tables and Chairs-orders served on signature dishes. -orders served on signature dishes.

Old Competitors Old Competitors include…include…

New Competitors New Competitors include…include…

Positives and Negatives to Positives and Negatives to redesignredesignPositives:Positives:

Remodeled Burger Remodeled Burger Kings: Increase in profits Kings: Increase in profits of 12-15%of 12-15%Completely rebuilt Completely rebuilt branches:branches:

Increase of up to 30% Increase of up to 30% Whopper bar emphasize Whopper bar emphasize

their “Have it your way” their “Have it your way” moto.moto.

Larger span of new Larger span of new customers customers

$1 Billion in revenues on $1 Billion in revenues on McCafe alone over a McCafe alone over a yearyear

Negatives:•Business mostly through drive through will not be affected by remodel. •High costs in remodel creates long term debt for franchisee.

Rivals among competitorsRivals among competitors

Burger King’s effort to Burger King’s effort to ENHANCEENHANCE the the experience. experience.

McDonald’s main strategy McDonald’s main strategy is to use franchises to is to use franchises to enter into markets. enter into markets.

-25, 465 operated -25, 465 operated by by Franchisees Franchisees

-6,502 operated by -6,502 operated by the the companycompany

-In 118 countries-In 118 countries

McDonalds Gross Profit McDonalds Gross Profit (March 31, 2009) $(March 31, 2009) $1.8 1.8

BillionBillion (June 30, 2009) $(June 30, 2009) $2.1 Billion 2.1 Billion

Burger King also uses the Burger King also uses the same strategy to enter into same strategy to enter into markets. markets.

-10,496 operated -10,496 operated by by franchisees franchisees

-1,429 operated by -1,429 operated by the the company company

-In 73 Countries-In 73 Countries

Burger King Gross ProfitBurger King Gross Profit(March 31, 2009) $(March 31, 2009) $203 203

millionmillion(June 30, 2009) $(June 30, 2009) $167.6 167.6

millionmillion

Which Restaurant do you Which Restaurant do you prefer?prefer?

SourcesSources

(2007, May 07). Papascott background on Mccafé. (2007, May 07). Papascott background on Mccafé. Retrieved from Retrieved from http://www.papascott.de/archives/2007/05/07/ background-http://www.papascott.de/archives/2007/05/07/ background-on-mccafe/on-mccafe/

(n.d.). (n.d.). McDonald’s CorporationMcDonald’s Corporation. Retrieved from . Retrieved from http://www.hoovers.com/mcdonald's/--ID__10974--/free-co-http://www.hoovers.com/mcdonald's/--ID__10974--/free-co-competitors.xhtmlcompetitors.xhtml

Yahoo Finance, "MCD Yahoo Finance". Yahoo. Oct. 22, 2009 Yahoo Finance, "MCD Yahoo Finance". Yahoo. Oct. 22, 2009 <http://finance.yahoo.com/q?s=MCD>. <http://finance.yahoo.com/q?s=MCD>.

Yahoo Finance, "BKC Yahoo Finance". Yahoo. Oct. 22, 2009 Yahoo Finance, "BKC Yahoo Finance". Yahoo. Oct. 22, 2009 <http://finance.yahoo.com/q?s=BKC>. <http://finance.yahoo.com/q?s=BKC>.

King, Burger. "Burger King Corp.'s Bold New Global King, Burger. "Burger King Corp.'s Bold New Global Restaurant Design Takes Flight At Amsterdam's Schiphol Restaurant Design Takes Flight At Amsterdam's Schiphol Airport". Burger King. Oct. 22, 2009 Airport". Burger King. Oct. 22, 2009 <http://www.bk.com/en/us/company-info/press/press-<http://www.bk.com/en/us/company-info/press/press-release1015.html>. release1015.html>.

Jerry. "Environmentally Friendly Cars". Green Cars. Oct. 22, Jerry. "Environmentally Friendly Cars". Green Cars. Oct. 22, 2009 <http://environmentallyfriendlycars.org/>. 2009 <http://environmentallyfriendlycars.org/>.