SWOT Burger King France

BURGER KING



Introduction

●

Burger King is a global fast food chain. It is headquartered in Miami, Florida in the United States.

Brief history of the brand

Founded in 1953 in Jacksonville, Florida.

One year later, the first fast food restaurant opened in Miami by James McLamore and David Edgerton who were at the time two students at the School of Hotel Administration at the University Cornell.

● ●

● In 1967, BK was taken over by the Pillsbury Company.

● In 1988 the Pillsbury Company was buyout by Grand

Metropolitan.

● In 1997, Grand Metropolitan decided to merge with

Guinness in a company called Diageo.

● In 2002 it has been repurchased by mutual funds or

unit trusts of Texas Pacific, Bain Capital LLC and Goldman Sachs Capital which took over the three- quarter shares for 1 billion dollars.

● In the end, it is 3G Capital which repurchased Burger King in 2010 for 4 billion dollars.

Burger King elsewhere than simply in the US

● More than 300 restaurants in Australia. However, those restaurants are not called BK but Hungry Jack’s.

● In 1980, BK opened its first restaurant in the Champs-

Elysées in Paris. There were 39 restaurants with 16 ownerships until 1997. Indeed in this year the brand decided to leave France because of the weak rate of profit which could not allowed BK to compete with McDonald’s and Quick.

● However BK is back in France since 2012 in the Airport of Marseille.

● Another fast food in Reims.

● In the end of 2013, BK has reopened a restaurant in Paris next to Saint-Lazare Station.

● In the end of 2011, BK opened its first restaurant in Casablanca and then in Marrakesh, Rabat, Agadir.

● In a globalized world, fast food as McDonald's and BK tend to grow faster and faster.

● This month, a new restaurant is going to open in the Marseille Grand Littoral Mall with the first order kiosks.

● A flagship store is going to open in Paris Rive Gauche.

● BK has announced in November to reach the objective of opening from 350 to 400 restaurants in France from now to 10 years.

● There are 25 openings expected in France for this year (in Lyon, Bordeaux, Lille and Toulouse).



Strenghts

Geographic Diversification

● Today more than 13 000 outlets in 79 countries where the 2/3 are located in the United States. In other words 66% of its restaurants are located in the United States and 38,9% are established in international locations such as Europe, Asia, Africa and Canada.



Established Market Share

● Among fast food restaurant chains, BK is second only to McDonald’s and holds a 15% share of the United States market.

● The company’s profitability has also increased in recent years.

● Its operating profit has increased from $170 million in 2006 to $354 million in 2008.

Globally Recognized Brand

● BK is able to boast a brand that is widely recognized, high brand loyalty thanks to its slogans “Have it your way”, “Where kids are King” and “Chicken the way you like it”.

● The brand serves also many burgers that are not available in other fast food restaurants such as the whopper sandwich. There is product differentiation with large size.

● Is also known by its mascot called “the King”.

● The company was recently ranked 7th in brand

awareness.

Superior Growth Plan

● Around 90% of BK restaurants are owned and operated by independent franchisees moving to an entirely franchised model by the end of 2013.

● Has historically used several variations of franchising to expand its operations.

● Is able to grow while minimizing large capital expenditure, meanwhile it collects fees and royalties from each franchise added.

→ franchising = you buy the local rights to use the name, brand and image of another business.



Weaknesses

Vulnerability to labor and regulatory influences

● Although the company operates in many international venues, the majority of restaurants are in the United States.

● This concentration of operations in one geographic area increases company's exposure to local factors such as labor strikes and the influence of regulatory changes.



Less international appeal than its competitors

● The brand does not advertise their products like their competitors.

● Only have adequate suppliers in small markets as a result of later expanding after its rival McDonald’s

BK

...