On this photo, the Burger King Whopper hamburger is displayed on April 5, 2022 in San Anselmo, California.
Justin Sullivan | Getty Images
Seven months after Burger King unveiled a method to revive its U.S. operations, the chain is selling more Whoppers than ever before.
Burger King US CEO Tom Curtis told CNBC that initial improvements to the restaurant’s operations and recent marketing campaigns are already boosting sales and customer satisfaction, even though it’s still within the early round.
Parent company International restaurant brands is predicted to announce its profits and first-quarter sales figures for its divisions, including Burger King US, before the May 2 bell. Within the last quarter, sales at the identical Burger King stores within the US increased by 5% due to the implementation of early steps within the turnaround plan.
The $400 million plan to rejuvenate Burger King’s domestic sales was developed in partnership with franchisees and focuses on modernizing the restaurant and investing in promoting.
“What’s happened within the last six months is the ‘we’re on this together’ feeling we’ve got with our franchisees. I believe it’s unique within the industry, and I believe it’s different from what you see with some competitors since it’s good,” Curtis said.
A burger rival McDonald’s it has had highly publicized altercations with its operators through the years. Recently, tensions have been boiling over changes in franchise policy.
Before Burger King announced its official recovery strategy, the corporate spent a few 12 months simplifying operations to enhance efficiency and order accuracy, Curtis said. For instance, Burger King reformulated and renamed its chicken sandwich. Now retired, the Ch’King sandwich required 21 steps to make the ultimate menu item. A Royal Crispy Chicken sandwich only takes five.
After announcing its “Reclaim the Flame” strategy at its franchise convention in September, Burger King focused on a training program for all its restaurants that instructed employees on how one can greet customers, cook Whoppers properly, and hand out Burger King’s iconic crowns. . Curtis said it was “a very powerful thing we did coming out of the convention”.
Burger King also organized CEO roundtables in 45 cities. These roundtables included training CEOs to conduct a five-week deep clean of their restaurants.
“I believe these items are fundamentally vital and have resulted in a 20% increase in guest satisfaction,” said Curtis.
Moreover, Burger King launched its “You Rule” marketing campaign in the autumn. The chain’s mascot, Burger King, is just not seen within the ads. As an alternative, the clients are royalty.
And despite Curtis’s initial misgivings in regards to the “Whopper Whopper” jingle utilized in the campaign (he was upset with the lyrics and asked the marketing team to rethink), the song went viral and spawned memes on Twitter and TikTok. The corporate officially released the song in response to the recognition, and it has nearly 3.3 million streams on Spotify as of Friday.
“We’re selling more Whoppers than ever before. It had a extremely positive impact that we didn’t pay for or anticipate this business… it really exceeded my expectations,” said Curtis, adding that he was excited for restaurant brands to unleash their earnings.
Ever because the company announced its “Reclaim the Flame” strategy, it has been Pizza from Pizzeria Domino`s CEO Patrick Doyle joined Restaurant Brands as chairman of the board. Doyle oversaw the transformation of the pizzeria chain right into a digital powerhouse within the restaurant industry. Curtis, who started off as a Domino’s franchisee, worked alongside Doyle during his long profession at Domino’s as chief operating officer before joining Burger King in 2021.
Certainly one of Doyle’s priorities for Burger King is to enhance franchisees’ profitability. Two Burger King franchisees have to date filed for bankruptcy in 2023. The primary franchisee to file for bankruptcy, Toms King Holdings, auctioned most of its locations for $33 million in early April.
“I don’t need to say it’s welcome, because it isn’t, but I believe if it’s managed properly, the consequence might be higher than before,” Curtis said.
While early signs indicate a turnaround, Curtis is pushing aside a win lap for now, insisting that “Reclaim the Flame” is meant to be a multi-year growth strategy.
For instance, of the $50 million that Restaurant Brands has committed to improving the look of the restaurant, combined with franchisees’ own investments, Burger King spent just $15 million in 2022.
“We’re not even halfway there, and these items take time,” Curtis said.