What is in this article?:
- Burger King to introduce 'fewer, more impactful' menu items
- Franchisees to expand footprint
Strategy to ensure easy execution from franchisees, stronger marketing from company
Burger King Worldwide Inc. executives said this week that the company would streamline the rollout of new products in order to boost franchise-led growth.
Alexandre Macedo, president of Burger King North America, noted that the strategy of focusing on “fewer, more impactful” product launches resulted from a mutual interest from both the franchisee community and the company.
The strategy would ensure franchisees could execute the menu items easily and profitably and that Burger King could support it with stronger marketing campaigns, executives said.
“We’ve been working so much with the franchisees and really getting a better feel for this competitive moment, and we feel very strongly that to be able to have success in this competitive environment, it’s important to focus on the few, right things,” Macedo said. “When you do that, you guarantee the execution at the restaurant level, guarantee that the profitability of the franchisees is good and, finally, you guarantee that you can have a good marketing push on an item to make it relevant.”
He added that Burger King did exactly that with the Sept. 24 launch of its new Satisfries, which were available systemwide for only the last week of the third quarter.
“Everyone in the country knew we were launching Satisfries,” he said, “and it’s the same thing we want to do moving forward with a few additional launches planned before the end of the year.”
The less crowded menu pipeline stands in contrast to Burger King’s main quick-service competitors, McDonald’s and Wendy’s, which have publicly stressed the importance of new-product news and have increased their rollouts of premium limited-time offers. The chains also ramped up their marketing this year around new value platforms, including McDonald’s upcoming Dollar Menu & More and Wendy’s Right Price Right Size menu.
Burger King has also tweaked its value offerings, Macedo noted, including the reintroduction in August of its “2 for $5” mix-and-match sandwich offering, most recently including the Bacon Cheddar Stuffed Burger to increase guests’ choices.
“Product volumes from the August promotion were 31 percent higher than when we ran the same promotion in May,” he said, “making the third consecutive quarter of running this [2 for $5] promotion with improved performance each time.”
The difficult consumer spending environment that kept domestic sales relatively flat in the third quarter has not let up in October, Macedo said, yet same-store sales have improved into positive territory.
“This comes not only from Satisfries but also from our multi-tiered value approach, consistency, and fewer, more impactful launches,” he said, “which is exactly what you can expect moving forward.”