Franchise Essay, Research Paper
Jonathan VazquezIntro to BusinessBusiness PaperMay 11, 1999 Burger King is a leader in today’s fast-food industry, with locations in all 50 states and 56 international countries and territories around the world. James McLamore and David Edgerton founded Burger King Corporation in 1954 in Miami, Florida. McLamore and Edgerton, both of whom had extensive experience in the restaurant business before starting their joint venture, believed in the simple concept of providing the customer with reasonably priced quality food, served quickly, in attractive, clean surroundings.Since it began in Florida more than 43 years ago when a Burger King hamburger cost 18 and a Whopper sandwich cost 37 , Burger King Corporation has established restaurants all around the world — from Australia to the Bahamas, and from Venezuela to Hong Kong. By 1967, when the Minneapolis-based Pillsbury Company acquired the Company, 8,000 employees were working in 274 different restaurant locations. Today, there are more than 300,000 Burger King employees in more than 9,400 locations worldwide. Burger King s size and success are the result of a tradition of leadership within the fast-food industry in the areas of product development, restaurant operation, decor, service and advertising. The Whopper sandwich was an instant hit when it was introduced in 1957. Burger King tries to provide products with the quality and convenience sought by today’s Vazquez 2consumers. The BK Broiler , a grilled chicken sandwich was introduced in 1990, it abruptly captured a following all of its own. It sold up to a million a day immediately following its release. Still, the Whopper sandwich, one of the best-known hamburger sandwiches in the world, remains an ever-lasting favorite. In excess of 1.6 billion sandwiches are sold annually.One of the factors that have helped to increase the Company’s expansion and growth has been the sale of restaurant franchises. By 1961, McLamore and Edgerton had paid for national franchise rights to the Company, which was then operating 45 restaurants throughout Florida and the Southeast.Restaurant decoration has traditionally been important in creating memorable images for Burger King consumers. Burger King was the first fast-food chain to introduce dining rooms, allowing customers a choice to eat inside. Drive-thru service, designed to satisfy customers “on-the-go,” was introduced in 1975. Drive-thru s are responsible for approximately 60% of Burger King business. “Take-out” represents another 15% of off-premise dining. Burger King Corporation has always taken great care in the design and construction of its restaurants so they will be attractive features of their communities. The “Double Drive-Thru,” “Kiosk”, “In-Line” and “Co-branded” restaurants are among the new concepts that will drive Burger King forward to meet future challenges of the 90s.Burger King Corporation’s advertising campaigns have also donated to the Company’s success. The Company’s first television ad ran on Miami’s only VHF station in 1958. One year after The Pillsbury Company purchased Burger King as a subsidiary in Vazquez 31968, the Company’s first major promotion, “The Bigger the Burger the Better the Burger,” was released. In 1974 the memorable “Have It Your Way” campaign was created. Advertising campaigns in the last ten years have included “America Loves Burgers and We’re America’s Burger King;” “Best Darn Burger;” “Make It Special, Make It Burger King;” “Aren’t You Hungry;” “Battle of the Burgers;” “Herb;” “Burger King Town;” “Best Food for Fast Times;” “We Do It Like You’d Do It,” “Sometimes You’ve Gotta Break The Rules,” “Your Way, Right Away;” “Get Your Burger’s Worth,” and most recently, “It just tastes better.”In 1985, restaurant sales passed $1 million on average and a European training center opened in London to aid overseas Company and franchise employees.Company management, which had been kept under one roof in the Kendall area of Miami since 1970, moved in 1988 to a 114-acre site in South Dade County, Florida. The World Headquarters consists of three buildings, with 290,000 square feet of office space. Almost one-half of the whole site was secured in its natural state.Maybe the most impressive characteristic that Burger King Corporation possesses is its will to continually strengthen the product line and Brand image. In today’s Brand conscious society, this will continue to mean success for Burger King.Burger King Corporation and its franchisees operate more than 9,500 restaurants in all 50 states and 56 countries around the world. In Fiscal Year 1997, Burger King had systemwide sales of $9.8 billion. Burger King Corporation is a subsidiary of London-based Diageo, PLC (NYSE: DEO), one of the world’s leading branded consumer products businesses. Diageo’s register of international food and drinks brands include Vazquez 4Guinness, Pillsbury, Green Giant, H agen-Dazs, Old El Paso, Progresso, Burger King, Smirnoff Vodka, Bailey’s Original Irish Creme and J&B Rare Scotch Whisky.There are more than 10,200 Burger King restaurants in 54 countries and international territories worldwide. Over 4 million Whopper Sandwiches are sold each day at Burger King restaurants around the world — more than 1.4 billion each year. Annually, 2.6 billion hamburgers are sold at Burger King restaurants worldwide. Daily, which is equal to 40 semi-truck loads of beef patties. The Burger King Kids Club was launched nationally in January 1990. More than one million kids signed up in the first two months. There are currently 5 million members. Burger King Corporation’s promotion of the Disney film, Toy Story, was a clear success. More than 43 million premiums and 15 million trading cards were distributed in 51/2 weeks. Burger King uses around 1/2 million pounds of bacon every month in its restaurants. Each year, 1.7 billion units of French fries are sold at Burger King restaurants across the U.S. Burger King uses more than 700 million pounds of fries annually in the U.S. alone. The following timeline will give you an idea of how much Burger King has Grown in the past 40+ years. 1954 James W. McLamore and David Edgerton co-found Burger King of Miami, Inc., which becomes Burger King Corporation in 1972 McLamore and Edgerton’s first restaurant, located at 3090 NW 36th Street, Miami, Florida, sells 18 broiled hamburgers and 18 milkshakes. Burger King offers 12-oz. regular and 16 oz. large sodas.
1957 Whopper sandwich introduced . . . appears on the menu for 37 .1958 Miami-based Hume, Smith and Mickelberry hired as first major advertising agency. They developed “Burger King, Home of the Whopper” campaign.1961 McLamore and Edgerton purchase national and international franchising rights.1963 Burger King goes international . . . two restaurants open in Puerto Rico. Vazquez 51967 The Pillsbury Company buys Burger King Corporation as a subsidiary for $18 million. 274 restaurants in operation with a total of 8,000 employees.1968 Ad agency Batten, Burton, Durstine and Osborne (BBDO) hired to come up with first major promotion “The Bigger The Burger The Better The Burger.”1974 “Have It Your Way” campaign created by BBDO.1975 First European Burger King restaurant opens in Madrid, Spain.Drive-thru service was introduced.1976 JWT named as one of Burger King Corporation’s advertising agencies.1977 2000th Burger King restaurant opens in Hawaii, this put locations in all 50 states.1982 Burger King introduces Bacon Double Cheeseburger. Project BOB (Battle of the Burgers) advertising campaign. Late-night Drive-Thru introduced.1983 Salad Bar arrives nationally. First on-campus Burger King restaurant opens at Northeastern University, Boston, Massachusetts. First mobile restaurant unit, the “Burger Bus” opened by Ohio franchisee. UniWorld Group, Inc., named as one of Burger King Corporation’s advertising agencies.1985 Breakfast is launched nationally with the Croissantwich as the primary product. Self-serve drinks introduced. Crew Educational Assistance Program (CEAP) established, providing crewmembers with $2,000 for post-secondary education opportunities. Ground breaking for new World Headquarters site on 114 acres (building sits on 40 acres) in Miami. Scheduled completion early 1988.1986 Record 546 new restaurants open worldwide. 4,743 restaurants in operation . . . $4.5 billion in system-wide sales. 402 international restaurants in 25 countries. Chicken Tenders introduced into the product line. New breakfast product (French Toast Sticks) introduced nationally.1987 New breakfast product (Bagel Sandwich) introduced to menu. NW Ayer named as one of Burger King Corporation’s advertising agencies.1988 New World Headquarters opens on 114-acre site (building sits on 40 acres) in South Dade County, Florida. Grand Metropolitan PLC acquires The Pillsbury Company and its subsidiaries, including Burger King Corporation, for $5.79 billion. Burger King starts regional rollout of Chicken International sandwiches.1989 Hispanic advertising agency Sosa, Bromley, Aguilar & Associates joins D’Arcy Masius Benton & Bowles, Saatchi & Saatchi Advertising, and UniWorld Group, Inc., as Burger King Corporation’s advertising and marketing team.Vazquez 6 Burger King launches 10 Burger King Academies across the U.S., alternative schools for children at risk of dropping out. “Sometimes You’ve Gotta Break The Rules” ad campaign is introduced. Burger King continues European expansion with conversion of nearly 100 Wimpy counter service restaurants in the United Kingdom to the Burger King brand. Grand Metropolitan acquired Wimpy restaurants in the August acquisition of UB Restaurants. A total of 200 restaurants were switched over by Summer 1990.1990 Burger King Kids Club program launched nationally. One million kids register in first two months. Burger King introduces BK Broiler , flame-broiled chicken sandwich. Burger King switches to 100% vegetable oil for frying French fries. Burger King opens in Dresden, East Germany.1991 “Your Way, Right Away” campaign is launched. International expansion continues with Burger King restaurants opening in Budapest, Hungary and Mexico.1992 Burger King Corporation teams with Disney for the first of 9 promotional theatrical releases tie-ins with the movie giant featuring the animated films Beauty and the Beast and Pinocchio. Burger King opens its first restaurant in Warsaw, Poland.1993 Burger King opens its first restaurant in Saudi Arabia. Burger King Corporation becomes the largest single circulation publisher of children’s magazines with the release of three new magazines, distributed to more than three million members of its Kids Club program. First international Burger King Academy opens in London, England. Burger King launches the Everyday Value Menu.1994 Ammirati & Puris/Lintas named as Burger King Corporation’s general market advertising agency. “Get Your Burger’s Worth” campaign is launched. Burger King Corporation teams with Disney for the blockbuster hit The Lion King. The BK Broiler , the BK Big Fish , and the hamburger are increased by more than 50% adding a true value to customers. Burger King opens its first restaurant in Israel, Oman, Dominican Republic, El Salvador, Peru and New Zealand.1995 Burger King opens record 657 new restaurants worldwide. Burger King enters Paraguay and Turkey1996 Burger King Corporation acquires 57 restaurants from Davgar Inc., making it the single largest purchase of company restaurants in Burger King history. Burger King employs 300,000 employees systemwide. Urban City Foods announces plans to develop 125 restaurants in inner cities over the next five years. Burger King Corporation teams with Disney for the movie favorite The Vazquez 7 Hunchback of Notre Dame. Burger King announces promotional partnership with Universal Studios for The Lost World, the sequel to Jurassic Park.1997 President Bill Clinton selects Burger King Corporation work with the White House and identifies ways to transition current welfare recipients into the work force. Burger King establishes its welfare-to-work coalition. Burger King launched second signature hamburger sandwich, the Big King . Burger King launches its new hotter, crispier, and tastier French fries with a $70 million marketing campaign, making it the largest product launch in company history. Grand Metropolitan, Burger King Corporation’s parent company, merges with Guinness to create a new company called Diageo, PLC.1998 Burger King launches Cini-minis in the U.S. The product, which features the heart of the cinnamon roll, was developed exclusively for Burger King. Burger King opens its fiftieth restaurant in Turkey. Burger King opens its 10,000th restaurant. The restaurant is located in Sydney, Australia.1999 Burger King conducts second Free Fryday in U.S. Distributes more than 10 million orders. Burger King announces two-year alliance with Nickelodeon’s “The Big Help.” Burger King enters Bolivia with the first of 10 restaurants scheduled to open in that country over the next 3 years.