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Burger King will spend $400 million to improve its reputation by renovating and relocating stores and doubling its advertising

  • Burger King launches a large-scale advertising and renovation plan.
  • The chain will invest $400 million over the next two years in rebranding its reputation as a premium fast food chain.
  • Burger King has lagged behind other burger chains with slow sales.

Burger King is launching a campaign to invest $400 million over the next two years to focus on US growth and rebranding as a premium fast food restaurant.

The “Reclaim the Flame” campaign consists of two parts: $150 million in advertising and digital investment, and $250 million in upgrading restaurant equipment, renovating older locations and relocating underperforming stores. It was first announced by Burger King North America president Tom Curtis at the chain’s annual convention in early September.

Part of the campaign will focus on “premium branding,” trying to improve perceptions of the signature Whopper and create a “destination-worthy chicken sandwich,” Burger King said in a statement.

Burger King has been in the midst of a major rebrand for several years now. In 2021, the chain revamped its logos and branding for the first time in 20 years, returning to a classic look that emphasized the Whopper and natural colors.

The chain spent much of 2022 shrinking menus to simplify operations and provide customers with a better ordering experience, in addition to adding digital menu boards to most drive-thrus. The changes were part of a plan to reduce drive-thru times, which made up 80% of sales from 2021.

Burger King has plenty to do to compete in the fast food world. It had the seventh highest U.S. fast food sales in 2021, according to QSR’s annual Top 50 report. Burger King lagged behind McDonald’s, Chick-fil-A, Taco Bell, Wendy’s and other big names in terms of US sales in 2021, despite having more US locations than Chick-fil-A and Wendy’s.

Burger King’s changes have so far shown no material improvement in sales. US sales shrank slightly in the most recent quarter ended June, down 0.3% from the previous year. Other hamburger competitors rose in the same period, McDonald’s by 3.7% and Wendy’s by 3.5%.

The rebranding could be what Burger King needs to breathe new life into the brand. US franchisees have endorsed the rebranding and pledged to invest additionally in advertising, a statement said.

“We believe now is the time to make a significant investment to accelerate the work, given the quality of the team, the focus of the plan, the commitment of our franchisees and the clear opportunity for our iconic brand to reclaim the flame and be the first.” choice for a quality meal, an exceptional experience and a great value,” said Jose Cil, CEO of Burger King parent company Restaurant Brands International, in a statement.

Do you have a story to tell about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

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