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