In
late 2010, a Brazilian private equity company known as, 3G Capital Partners LP
took over Burger King. Prior to this new management, the chain went through a
series of young CEOS in hoping to bring new strategies to save and expand the
chain. During these changes, Burger King added many products to the menu without
extensive testing. For instance, in 2010, Burger King launched more than
30-limited time offers and 20 permanent menu items, yet still suffered bringing in revenues. Those new products appeared to be complicated for
consumers, and confused kitchen operators. After many unsuccessful attempts and new management, the company decided to stop all of the new changes
and go back to “its roots.” Before implementing new strategies, the company seeks
out to groups and customer surveys to look for the quality that customers want
most. As the results, the company decided to narrow down their menu selection
by taking out all the ones that resulted in poor sales and add fewer new foods
that have the quality of “fast food,” such as hot dogs and chicken fries. The
company also “wants to reduce the average time between drive-through and order
pickup to 2 minutes and 45 seconds.” According to the source, these changes are
showing positive results. Also, in 2015, Burger King purchased Canadian
coffee-and doughnut chain Tim Hortons, forming Restaurant Brands.
I
find this article relevant to our marketing class because Burger King has
tried different marketing strategies to maintain their business. From changing different
CEOs to adding many limited offers and various new foods to the menu without
much focus, they still experiencing many downfalls. Shortly the new
management took over, and the company decided to try different method by cooperating with customers to find better solutions. By doing this method, they have better visual of the products and target customers as well.
I think that it is an interesting concept that the management has that big of an impact on the company as a whole. I wonder how going back to "its roots" will affect Burger Kind in the long run when it comes to competition.
ReplyDeleteWith how many items on the menus of fast food restaurants like Carl's Jr. and Sonic, I think that the new changes for Burger will be a benefit that will allow them to work faster and more efficiently. With too many products to produce at any given time this will free up a lot of room for them and make them more centralized and directed towards a single goal rather than trying to do everything with mediocre results.
ReplyDeleteMaybe they should add an all day breakfast. I mean it worked for McDonald's lol.
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