Burger King

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Burger King
Company typePublic (NYSEBKC)
IndustryFast food
Founded1954 in Miami, Florida, USA
HeadquartersMiami-Dade County, Florida, USA
Key people
John Chidsey, CEO; James McLamore and David Edgerton, Founders
ProductsFast food (including hamburgers, french fries and milkshakes)
RevenueIncrease$1.94 billion USD (2005)
Increase$151.00 million USD (2005)
Increase$47.00 million USD (2005)
Number of employees
340,000 (2006)
Websiteburgerking.com
File:Burger King Seoul South Korea.jpg
Burger King, Seoul, South Korea

Burger King is a large international chain of fast food restaurants, predominantly selling burgers, french fries, soft drinks, desserts, and various sandwiches. Hungry Jack's is a franchisee of Burger King that owns, operates and franchises over 300 restaurants in Australia.

Corporate Profile

History

Burger King's first restaurant, originally called Insta Burger King, was opened on December 4, 1954 in a suburb of Miami, Florida, USA by James McLamore and David Edgerton, who were both alumni of the Cornell University School of Hotel Administration. McLamore had visited the hamburger stand belonging to Dick and Mac McDonald in San Bernardino, California; being able to sense potential in their innovative assembly line-based production system, he decided to create a version of his own.

Coincidentally, the first restaurant's milkshake machine was sold to them by Ray Kroc, who later bought the McDonald's restaurant chain from its founders and oversaw its worldwide expansion.

In 1967, Burger King was bought by Pillsbury, which was bought by Grand Metropolitan PLC of Britain in 1988.

In 1989, the Burger King brand acquired many locations of its major UK rival Wimpy when its parent company bought the brand from its previous owner United Biscuits and re-branded them as "Burger King", giving it an even greater presence in that country. While other "Wimpy" locations are still trading today (now independent from BK) they no longer have the presence they once did (the market is now dominated by Burger King and the larger McDonald's).

In 1997, Grand Metropolitan merged with Guinness to form a company called Diageo.

On Friday, December 13, 2002, Burger King was purchased from Diageo for $1.5 (US) billion by a private equity group headed by Stanley Foster and the investment firm Texas Pacific Group (TPG)[1]. The company planned to go public within the next two years, though this was delayed until 2006. The new owners, through several new CEOs, revitalized the company; they realized about $367 million of the dividends.

On February 1, 2006, CEO Greg Brenneman announced TPG's plans to turn Burger King into a publicly traded company by issuing an Initial Public Offering. On February 16, the company announced it had filed its registration for the IPO with the Securities and Exchange Commission. On May 18, 2006, Burger King began trading on the New York Stock Exchange under the ticker symbol BKC.

Key Dates:[2]

  • 1954: James McLamore and David Edgerton establish Burger King Corporation.
  • 1957: The Whopper is launched.
  • 1959: The company begins to expand through franchising.
  • 1967: Burger King is sold to Pillsbury.
  • 1977: Donald Smith is hired to restructure the firm's franchise system.
  • 1982: Burger King claims its grilled burgers are better than competitors McDonald's and Wendy's fried burgers.
  • 1989: Grand Metropolitan plc acquires Pillsbury.
  • 1997: The firm launches a $70 million french fry advertising campaign; Grand Metropolitan merges with Guinness to form Diageo plc.
  • 2002: A group of investors led by Texas Pacific Group acquire Burger King.

Trademark disputes

Burger King, Green Zone, Iraq

As it expanded in the United States, Burger King found that smaller operations had previously been using the name. One such restaurant in Mattoon, Illinois negotiated a settlement that forbids the chain from opening locations within 20 miles (32 km). See Burger King (Mattoon, Illinois).

In a trademark settlement with San Antonio local chain Whopper Burger, Burger King was not allowed to open locations within two counties of the city. The chain was ultimately bought out in the mid 80s, opening the way for San Antonio Burger King locations.

A trademark conflict also arose in Australia; see Hungry Jack's, below.

Facts and figures

Burger King Holdings is the parent company of Burger King, in the US it operates under the Burger King Brands title while internationally it operates under the Burger King Corporation banner. It is a publicly traded company with investment firms of Texas Pacific Group, Bain Capital, and Goldman Sachs each owning about 25% of the company.

Historically, Burger King has been the second largest burger chain in North America, behind McDonald's. However, Burger King's revenues and market share have been declining. In the early 2000s, Burger King fell to a near tie for second place with Wendy's. Burger King has been closing under-performing stores and changing its marketing strategy in an attempt to turn its fortunes around. In fiscal year 2002, the firm had US $11.3 billion in total sales.

As of 2006, there are more than 11,220 Burger King outlets in 61 countries. 66% of the restaurants are in the United States. The company has more than 340,000 employees who serve approximately 11.4 million customers daily.

Almost 90% of Burger King restaurants are privately owned and operated, or franchised. While Burger King Corporation sets standards for exterior store appearance, food quality and menu, individual owners have control over hours of operations, interior decor, pricing and staff uniforms and wages. For example, Magic Johnson's company Magic Johnson Enterprises purchased 30 Burger King stores on June 7, 2004. The stores were redecorated with a sports memorabilia theme. These locations officially reopened on December 3, 2004.

Burger King has a longstanding presence at U.S. Army and U.S. Air Force installations worldwide, dating back to the 1980s under a contract with Army and Air Force Exchange Service. Today, while other chains such as Taco Bell, Popeye's and Subway have a presence on military bases, virtually every major Army and Air Force installation hosts a BK restaurant. Many Burger King outlets, even inside cities, require customers to operate a motor vehicle to purchase food during late evening hours.

Burger King is one of the few companies that does not accept communication via email.

Hungry Jack's profile

File:Hungry.Jack's.Logo.gif
Hungry Jack's Logo, similar to that of the previous Burger King Logo

When Burger King decided to expand its operations into Australia, it found that its business name was already trademarked by a man running a small takeaway food shop. In consequence, the Australian franchisee, Jack Cowin, was provided by Burger King with a list of possible alternative names that Australian Burger King restaurants could be branded as. These names were derived from pre-existing trademarks already registered by Burger King and Pillsbury (which was, at that time, the parent company of Burger King). Cowin selected the branding Hungry Jack's, echoing his name and sentiment. 'Hungry Jacks' - without the apostrophe - was actually a Pillsbury brand, being used in the US to market pancake (flapjack) mixture. Accordingly, the first Australian franchise of the Burger King Corporation, established in Perth in 1971, was branded as Hungry Jack's.

In 1986, Hungry Jack's purchased 11 failing Australian Wendy's Old Fashioned Hamburgers locations and rebranded them under the Hungry Jack's name.

1996 to 2001

When the existing Australian registered trademark for Burger King lapsed in 1996, the American parent company wanted Cowin to change the Hungry Jack's outlets over to the Burger King name. Cowin resisted the change, but despite this Burger King proceeded between 1996 and 2003 to open more than seventy outlets in Australia under the Burger King name. These built on their existing stores in international airports – the international territory apparently outside the Cowin licensing deal. In some cases the new Burger King outlets were located very close to existing Hungry Jack's outlets.

As a result of Burger King's actions, Hungry Jacks Pty. Ltd. began legal proceedings in Australia against the Burger King Corporation citing violation of the master franchising agreement.

In 2001, the case was finally resolved in favour of Hungry Jack's in a case that eventually included the Australian operating arm of Royal Dutch Shell, and as a result Burger King Corporation was ordered to pay $AUD 75 million to Hungry Jack's for breach of its franchise agreement ([2001] NSWCA 187). One final attempt was made by Burger King to appeal the decision to the High Court of Australia ([2001] HCATrans S157/2001) however this appeal was dismissed.

2002 to the present day

In 2002, Burger King Australia exited the country and sold a 51% share of its Australian restaurants to TPF, the company that operates Burger King in New Zealand. In an attempt to improve rapidly falling sales, TPF re-branded its Burger King restaurants as Hungry Jack's in late 2003 believing that the Hungry Jack's name with its 30 year history was the stronger brand. A market research survey conducted six months after the re-branding showed that Burger King had been the preferred brand, and that the words most often chosen by respondents in the survey to describe Hungry Jack's were "slow" and "dated"[citation needed]. In mid 2005, TPF decided to exit the Australian market and sold its 51% share of the former Burger King sites to Hungry Jack's Pty Ltd, the company operated by Jack Cowin.

Operational nuances

File:Hungry.Jack's.Slogan.gif
The slogan "The burgers are better at Hungry Jack's" is well known in Australia.

While Burger King's logo has since changed to the "blue swirl" design, the Hungry Jack's logo is still (as of 2005) based on the previous Burger King logo, employing the simpler bun-and-filling motif.

Hungry Jack's sells the usual range of burgers but also offers an Australian specialty: the Aussie Burger. This burger is based on the traditional Australian fish and chips shop favorite, including fried egg, bacon, onion, and beetroot, with the traditional meat, lettuce, and tomato. Hungry Jack's locations are required to follow any menu changes made by Burger King.

Hungry Jack's introduced a breakfast menu in late 2005 in three states (Queensland, New South Wales, and Northern Territory). It was subsequently introduced into the other states on October 31st 2006.

Hungry Jack's retains strong links with Perth, with the city's first team in the Australian Football League- the West Coast Eagles- having been sponsored by Hungry Jack's since their entry into the league in 1987.

Hungry Jack's has seen success with its Kids Club mascots, allowing children to have themed birthday parties at its restaurants, and also with its Kids Club Meals (similar to McDonald's Happy Meal) often using well known collectible toys; see Burger King Kingdom.

Hungry Jack's in Australia has trademarked the new slogan 'Oh Yeah' which has featured in late 2005/early 2006 commercials. Other changes at Hungry Jack's include new fresh salads and deli-style baguettes.

Many larger Hungry Jack's stores in Australia, especially in Perth, Western Australia, where the first Hungry Jack's store opened, have a 1950s/1960s styled theme. Background music from this era is played (sometimes through a 50s style Jukebox), and contemporary pictures and memorabilia are often hung around the stores. In larger sit-down style restaurants the seats and tables are laid out in a 1950s "Diner" style manner.

Products

Burger King predominantly sells hamburgers, various types of chicken sandwiches, french fries, soft drinks, and desserts. In many markets BK offers salads and vegetarian items, wraps and other localized fare. This section provides a brief sampling of items common to BK's company-wide menu, a more complete listing can be found in the Burger King Products article.

Burgers

Whopper Combo with fries and drink
  • The BK XXL line of sandwiches is a group of double cheeseburgers made with two 4 ounce burger patties. The line is only sold in Europe.

Chicken & fish

  • BK has one market-wide chicken sandwich and several "secondary" ones that are offered on a regional basis. The Original Chicken Sandwich is the "main" chicken sandwich sold by BK. It is made with mayonnaise and lettuce and is served on a long sesame seed bun. It is available in all markets, except Australia, under various names.
  • BK offers several variations on its grilled chicken sandwich, none of which are sold company-wide.
  • BK's primary chicken piece product is called Chicken Tenders. They are shaped and breaded pieces of deep-fried, white-meat chicken. They are sold in the majority of its markets, sometimes under a different name: in Australia, Chicken Tenders are marketed as Chicken Strips, and in Germany as King Nuggets.
  • BK sells a fish sandwich that varies in size, ingredients and breads depending on the market it is sold.

Breakfast

As with most QSR restaurants, Burger King's main breakfast menu products are breakfast sandwiches.

  • The Croissan'Wich is the signature breakfast sandwich in the US. The Croissan'Wich is also a family of breakfast sandwiches in various sizes and configurations. It also sold international markets as the Croissant Sandwich.
  • In most markets, breakfast sandwiches are usually made with a sausage patty, eggs and American cheese. Bacon, ham or other local meats can be substituted for the sausage or the sandwiches can be made without any meat.

Other products

  • Burger King's Kids Club Meals are offered to compete with the popular Happy Meal from McDonald's and the Wendy's Kid's Meal from Wendy's. In most markets three varieties form the Kids Meal base: Chicken Tenders, hamburger, or cheeseburger.

Advertising

This section provides a summary of the advertising programs Burger King has employed during its history. A more detailed history may be found in the Burger King Advertising article.

History

In the early to mid-1970s, Burger King ran a series of much-lampooned (but successful and catchy) television commercials in which its employees would sing: "Hold the pickles, hold the lettuce. Special orders don't upset us. All we ask is that you let us have it your way!" This advertising strategy aimed to contrast Burger King's flexibility with McDonald's famous rigidity.

Their first major cross-promotional success was in 1977 when they offered collectible glasses featuring characters from Star Wars. The promotion was wildly successful, and the glasses are highly sought after to this day.

In 1982, Burger King created an advertising stir when it created a set of commercials featuring a then-4-year-old Sarah Michelle Gellar, in which Gellar stated that McDonald's burgers were 20% smaller than Burger King's. Arguably the first attack ads on a food chain by a competitor, the campaign was controversial in that prior to it, fast food ads only made allusions to the competition in a vague manner, never mentioning them by name. McDonald's sued Burger King, the advertising agency that came up with the ads, and Gellar. The suit was settled the following year on undisclosed terms.

In November 1985, Burger King spent $40 million on the “Where’s Herb?” advertising campaign. The company stated that Herb was the only man in America who had never eaten a Whopper. If a customer located him in any store, he or she would win $5,000. Burger King purposely chose not to reveal what Herb looked like, resulting in annoyance among its patrons. In a Super Bowl XX commercial, Burger King finally revealed Herb as a bespectacled nerd in an ill-fitting suit. Herb toured stores across the country, appeared on The Today Show, and served as a guest referee during Wrestlemania 2. The campaign had little impact on sales and was quickly dropped. According to Advertising Age magazine, the Herb campaign was the "most elaborate advertising flop of the decade.” [3] [4]

In the early 1990s, Burger King advertised introduced its new dinner offering, dinner baskets and table service, with the "BK Tee Vee" (or "BKTV") ad campaign. The taglines for the campaign were "BK Tee Vee... I Love this Place!" and "Your Way Right Away!", which featured Dan Cortese as "Dan: The Whopper Man."

Current advertising

The Miami based advertising frim of Crispin Porter + Bogusky took over the advertising account of BK on January 27, 2003[5]. Employing the advertising technique called Viral Marketing, CP+B's ads generated significant word of mouth and for its new use of what has been called the Creepy King. The "Creepy King" is an actor who wears an over-sized, grinning mask of that is a caricature of the original Magical Burger King character used in BK's children advertising from the late 1970s to early 1980s (see below).

The "Creepy King" was first used to advertise the chain's breakfast sandwiches. Additionally, the character has appeared in the tie-in promotion of the film Star Wars Episode III: Revenge of the Sith, commercials for a cross-promotion with the NFL and DirecTV's NFL Sunday Ticket sports subscription package. In the promotion, a code entered from the wrapper from an Angus burger sandwich could net several prizes, including free access to the Sunday Ticket package NFL Your Way promotion.

CP+B went on to create several other strange characters and websites including the The Subservient Chicken[6], featuring a person (presumably) in a chicken costume, who supposedly does, within reason, whatever he is told to, advertising the TenderCrisp chicken sandwich; a faux metal band called Coq Roq, who wore chicken masks parodying the style of masks of nu metal band Slipknot, used to advertise BK Chicken Fries; Sith Sense was a of the Revenge of the Sith tie-in campaign, with an image of Star Wars's Darth Vader utilizing a 20 Questions answering program; the Big Buckin' Chicken, to advertise the TenderCrisp Cheesy Bacon Chicken Sandwich; and the Whopperettes, women dressed as burger condiments who appear with the King in a Broadway-style show.

In November 2006, Burger Kings sold a set of three advergaming titles for the Xbox and Xbox 360 entitled Sneak King, Pocketbike Racer and Big Bumpin' for an additional $3.99 each with any value meal. The games featured many of the characters that CP+B had created for BK. In Pocketbike Racing and Big Bumpin' players could choose to play as the Subservient Chicken, members of the Coq Roq band, the Whopper Jr. or the Creepy King. The television ads featured the King being filmed in a motion capture suit performing stunts for the games. Former Anthrax/Armored Saint Vocalist John Bush provided the narration. As of the end of December, 2006, The games sold 2 million copies as another Xbox 360 hit, Gears of War.

In October 2006, Burger King rolled out a new design for both their drive-thru and dining room menu boards, expanding their Value meal selections to 12 items, from the previous 10.

Hungry Jack's advertising

The official slogan for Hungry Jacks, the Australian version of Burger King, has been for many years and currently is: "The burgers are better at Hungry Jacks."

Children's advertising (US)

Starting in the 1970s and running into the 1980s, BK had a generic Kids' Club that gave children coupons for selected products each month, a small toy that rotated on a monthly or weekly basis, and an extra surprise if it was the child's birthday. Burger King has been known for its longtime giveaway of free paper crowns, which are sometimes redesigned to match any promotions the restaurant may be running.

The original advertising featured a small, animated King. The King would travel around on a modified chopper with a throne as the seat and visit a BK and present the children with small gifts. The tag line was "Burger King: Where kids are King!"

The original animated King was soon replaced by the "Marvelous Magical Burger King", a red-bearded king who ruled the Burger King Kingdom and performed magic tricks (mostly sleight-of-hand, but sometimes relying on camera tricks). This campaign paralleled McDonald's children's commercials, which featured "Ronald McDonald", "The Hamburglar", and "Mayor McCheese", along with other characters and mascots.

Other characters of the Burger King Kingdom included:

  • "The Duke of Doubt", the King's arch nemesis, who constantly tried to prove that the King's magic was not real;
  • the "Burger Thing", a large, 3-d painting of a hamburger that talked;
  • "Sir Shakes-a-Lot", a knight with a craving for Burger King milkshakes and armor made of BK Cups;
  • the "Wizard of Fries", a robot who could "multifry", or generated french fries when given a sample.

Originally, BK would only offer a kids' meal when it had a cross promotion with an children's orientated product such as a film or a holiday. With the success of McDonald's Happy Meal in the late 1970s, BK introduced its own permanent kids meal, called the Kids' Meal Pack, in 1985 with a He-Man cross promotion. In June of 1999 BK introduced the Big Kids' Meal aimed at the preteen market with larger portions, which forced McDonald's to introduce its Mighty Kids Meal.

Kids' Club

In 1990, Burger King re-launched it kids' meal program as the Burger King Kids' Club meal across the United States, which continues in operation to this day and is the largest club of its kind in North America. Club members receive an annual mailing in the month of their birthday that contains games, product information, and a birthday gift in the form of a coupon for a free Kids' Meal.

The Burger King Kids Club Gang was a group of multi-ethnic fictional characters created to promote the Burger King Kids Club meal. Their names were:

After several years a new female character was added to the group:

  • Jazz, an Asian girl who loves music and sports a beret.

Each of the characters' signatures reflected their personality, e.g. Boomer signed her name with a football and baseball for the "O"s.

Honbatz

In 2005, the Kids' Club Gang were replaced by the Honbatz, odd creatures who were designed to replace nearly twenty year old Kids' Club gang with a more modern group of characters that would appeal to the tween market.[7] Each Honbatz has a personality that you would find in modern elementary school: the class clown, the brain or the rebellious one.

The new group consisted of:

  • Mixmax, a punk who likes showing off;
  • Thisorthat, a green monster that likes to eat everything but can't decide where to start;
  • Bonny, the studious one and the only girl in the group;
  • Chomp, an intimidating, large Honbatz, who is really a big softie that wants to fit in;
  • the Eeeps, a group of small, red, ketchup-craving creatures.

They have appeared in numerous ads.

The return of the King

In September 2006 BK began using the original animated King design from the 1970s on its cups, bags and in non tie-in kids advertising. The new (old) King is portrayed as a sarcastic type who sometimes gets in trouble for his mischief making adventures.

Children's advertising (Europe)

The European Kids' Club paperbags feature two youngsters, a female[1] and a male[2] character on the cover. The names of the youngsters are not featured on neither the paperbags nor any official Burger King sites, eventhough they are on the cover.

Slogans

  • Have it your way
    This slogan has been one of the longest running slogans of any company in the United States; Burger King has been using it and variants since 1973.
    • Your Way Right Away (1992)
    • When you have it your way, it just tastes better
    • Burger King, where you're the boss!
    • Eat like a king, not a clown. (2006)
  • The Whopper is BKs signature product, and it has produced several ad campaigns promoting it:
    • Home of the Whopper
      Many Burger King locations built in the 1960s and 1970s still have this slogan as part of their signage.
    • It takes two hands to handle a Whopper
    • In the land of burgers, Whopper is king
    • Eat Like a Man, Man (summer 2006, promotion of Texas Double Whopper)
    • The one and only Whopper (1979)
  • As part of its campaign to differentiate itself by its cooking method, 'Flame Broiling', BK has emphasized it in several slogans:
    • Fuel Your Fire
    • Feel the Fire
    • The Fire's Ready
    • Earl: Employee of the Month ("Earl" is the nickname of its broiling unit, an automated gas grill.)
    • We do it like you'd do it! (A Weber grill morphs into the BK logo.)
  • Wake up with the King (Current US breakfast slogan)
  • Stack it high, tough guy (promoting BK Stackers, 2005)
  • Where's Herb? (1986)
  • Theres OK, And theres BK!! (Current UK slogan)

Kid's advertising

  • Burger King Kids' Club, Where its cool to be a kid!
  • Great food, cool stuff, kids only (Burger King Kids Club) (1997)
  • Magic makes it special when you're with Burger King (1979)
  • Burger King: Where kids are king (1970-1975)

[edit] Logos

Original "bun halves" logo New "blue swirl" logoThe famous Burger King "Bun Halves" logo made its debut in 1969 and endured, with a graphical tightening in 1994, until it was replaced in 1999 (however, most restaurants did not acquire signs with the new logo until 2001). The logo, meant to resemble a hamburger, features the restaurant's name in red lettering on two lines, sandwiched between two yellow bun halves.

The new Burger King logo tilts the bun halves and the font on an axis, wraps the burger with a blue swirl, and has a more circular appearance.

The Hungry Jack's logo is based on the original Burger King "Bun Halves" design, and has been used since Hungry Jack's founding in 1971.

Hungry Jack's slogans

  • Betcha can't eat more than one! (Present Slogan)
  • The Burgers are Better at Hungry Jack's
  • Sink your teeth into the new Wallabee Whopper, only $3.99 (Australian dollars)
  • We're all about fresh at Hungry Jack's
  • Love it at Hungry Jack's
  • Home of The Whopper
  • Oh Yeah
  • Tastier burgers and more funner!

Logos

File:OldBurgerKingLogo.jpg
Original "bun halves" logo
New "blue swirl" logo

The famous Burger King "Bun Halves" logo made its debut in 1969 and endured, with a graphical tightening in 1994, until it was replaced in 1999 (however, most restaurants did not acquire signs with the new logo until 2001). The logo, meant to resemble a hamburger, features the restaurant's name in red lettering on two lines, sandwiched between two yellow bun halves.

The new Burger King logo tilts the bun halves and the font on an axis, wraps the burger with a blue swirl, and has a more circular appearance.

The Hungry Jack's logo is based on the original Burger King "Bun Halves" design, and has been used since Hungry Jack's founding in 1971.

Countries and territories with Burger King restaurants

Countries with Burger King restaurants

Countries and territories that once had Burger King restaurants

  • Finland Finland - Burger King operated in Helsinki for a short period in the 1980s
  • France France - Burger King decided to leave France in 1997 and closed their 39 French outlets in 1998
  • Japan Japan - First store opened in 1996, restaurants closed in 2001; now the only outlets are on U.S. Air Force bases (not a territory of Japan), operated by Burger King headquarters. It was announced that Burger King will open restaurants in Japan again in Summer of 2007, cooperating with Lotteria, a local hamburger chain.[8]
  • Poland Poland - Burger King operated in Poland from 1994 to 2001. In 2001, Burger King decided to withdraw from the Polish market, and all 23 restaurants were sold to AmRest, the operator of both Pizza Hut and KFC franchises for Poland. 6 of the restaurants were closed and 17 rebranded to KFC.
  • United States Virgin Islands U.S. Virgin Islands - Burger King left both St. Croix and St. Thomas in 1997
  • Colombia Colombia - Burger King operated in Bogotá for a short period in the 1980s

Burger King in pop culture

See also

References

A Burger King restaurant in Redwood City, California

Official websites

North America

Europe

South America

Other

Other sites