Burger King: An Analysis Of The Challenges Of Burger King

842 Words 4 Pages
Burger King In my opinion, Burger King is one of the best restaurants out there today. I can go there and get high quality delicious food to my liking at a very cheap price. The service is very fast and I never had a bad experience in the past, present and can’t even imagine one in the near future. Though it’s main competitor’s (McDonald, Subway, Wendy’s)serve the same type of fast food but I always prefer Burger king because better quality, service and incredible cheap price. Originally, opened at the Jacksonville, Florida on 1954 by Keith J. Kramer and Matthew Burns. It is second largest fast food chain which has 12000 restaurants in the world where …show more content…
I am going to discuss the challenges/Limitations as follows. In my point of views, the first barrier is too dependent on franchisee as revenue sources. Burger King generates revenues from three sources.1)retail sales company restaurants and 2)franchise revenues, consisting initially of royalties based on a % of sales reported by its franchise restaurants; and 3) property income originated from leased properties to franchisees.90 % of its restaurants were franchised. Secondly, Small presence internationally as compared to McDonald’s.60 % of BK restaurants are positioned in America only. Their availability in certain part of the world for example, ASIA and Middle East is treated very weak as compared to McDonalds. Thirdly, Failling to adjust to more suitable marketing …show more content…
BK kept continuing their market to young men providing high calorie burgers and Ads featuring dancing chickens and a “creepy looking” king. Fourthly, Relentless leadership changes. BK ever-changing leadership threatened to its ability to settle down and communicate a regular consistent and motivational vision to its franchisees. This insufficiency of direction and mission bled into the public. Creating its customers to be uncertain about burger King’s image. These failures may result in declining profits. Again the industry has very few entry barrier, making it saturated with numbers of fast food restaurants with same products offering. In addition, other challenges are ineffective advertising, changing

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