While marketers in many countries are worried about a recession, there is also optimism regarding the business climate and marketing budgets.
Burger King unveils $400-million revamp of North American business
By our News Team | 2022
More than 3,000 outlets will be upgraded, the mobile app is to be improved, staff training increases and advertising spend gets a boost.
Fast-food giant Burger King has announced a major brand revamp that will cost the company around US400-million in the United States alone.
It will involve, among other things, remodelling its restaurants in around 800 North American locations and upgrading a further 3,000 outlets with better technology and kitchen equipment, plus building enhancements.
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Also in the pipeline is a 30% increase in the advertising budget, which is scheduled to kick in from the fourth quarter of this year. In addition, $30-million is being spent on improving the brand’s mobile app, the menu will be tweaked, and there will be additional staff training.
Burger King already instituted some operational changes last year, when a new President for its North American business was appointed. These changes included a slimmed-down menu to improve drive-thru times and cutting down on paper coupons to push more customers to its mobile app.
Gradual ramp-up of the business
“We might see remodels start to hit the market mid-2023 and going forward. It should really be a gradual ramp[-up] of the business over the course of the [next] couple of years,” CEO Jose Cil said in an interview with broadcaster CNBC. “We expect that to start having an impact on sales over the next quarter.”
According to Burger King, remodelled restaurants typically see an average sales increase of 12% in their first year and outperform older locations over time.
The company said it is hoping that being more selective and strategic with its projects will produce even stronger sales growth, although it could take longer to see results.
The strategy has received support from franchisees operating 93% of its US restaurants, Burger King said in a statement. Franchisees will be chipping in their own money alongside the company for remodels and advertising.
There has been no confirmation from the company as to whether any of these changes will be extended to Burger King operations in other regions, including Africa.
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