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Burger King

Burger King Corporation (BK, stylized in all caps) is an American multinational chain of hamburger fast food restaurants. Headquartered in Miami-Dade County, Florida, the company was founded in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain. After Insta-Burger King ran into financial difficulties, its two Miami-based franchisees David Edgerton (1927–2018) and James McLamore (1926–1996) purchased the company in 1959 and renamed it "Burger King".[5] Over the next half-century, the company changed hands four times and its third set of owners, a partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, took it public in 2002. In late 2010, 3G Capital of Brazil acquired a majority stake in the company, in a deal valued at US$3.26 billion. The new owners promptly initiated a restructuring of the company to reverse its fortunes. 3G, along with partner Berkshire Hathaway, eventually merged the company with the Canadian-based doughnut chain Tim Hortons, under the auspices of a new Canadian-based parent company named Restaurant Brands International.

Burger King Corporation
Logo used since 2020
Former corporate headquarters in Miami-Dade County, Florida (now home to Lennar)
TypeSubsidiary
IndustryRestaurants
GenreFast food restaurant
PredecessorInsta-Burger King
FoundedInsta-Burger King:
1953; 71 years ago (1953)
Jacksonville, Florida, U.S.
Burger King:
1954; 70 years ago (1954)
Miami, Florida, U.S.
FounderInsta-Burger King:
Keith J. Kramer and Matthew Burns
Burger King:
David Edgerton and James McLamore
Headquarters5707 Blue Lagoon Drive, Miami-Dade County, Florida, U.S.
Number of locations
19,247 (2021)[1][2]
Area served
Global
Key people
    • Joshua Kobza (CEO, RBI)
    • Tom Curtis (president, Burger King Americas)
[1][2]
Products
Revenue
US$ 1.81 billion (2021)[1][2]
  • US$ 23.45 billion (system-wide sales)
363,000,000 United States dollar (2012) 
US$ 1.02 billion (2021)[1][2]
Total assets US$ 4.94 billion (2021)[1][2]
ParentRestaurant Brands International
Websitebk.com
Footnotes / references
[3][4][1][2]

The 1970s were the "Golden Age" of the company's advertising, but beginning in the mid-1980s, Burger King advertising began losing focus. A series of less successful advertising campaigns created by a procession of advertising agencies continued for the next two decades. In 2003, Burger King hired the Miami-based advertising agency Crispin Porter + Bogusky (CP+B), which completely reorganized its advertising with a series of new campaigns centered on a redesigned Burger King character nicknamed "The King", accompanied by a new online presence. While highly successful, some of CP+B's commercials were derided for perceived sexism or cultural insensitivity. Burger King's new owner, 3G Capital, later terminated the relationship with CP+B in 2011 and moved its advertising to McGarryBowen, to begin a new product-oriented campaign with expanded demographic targeting.

Burger King's menu has expanded from a basic offering of burgers, French fries, sodas, and milkshakes to a larger and more diverse set of products. In 1957, the "Whopper" became the first major addition to the menu, and it has become Burger King's signature product since. Conversely, Burger King has introduced many products which failed to catch hold in the marketplace. Some of these failures in the United States have seen success in foreign markets, where Burger King has also tailored its menu for regional tastes. From 2002 to 2010, Burger King aggressively targeted the 18–34 male demographic with larger products that often carried correspondingly large amounts of unhealthy fats and trans-fats. This tactic would eventually damage the company's financial underpinnings, and cast a negative pall on its earnings. Beginning in 2011, the company began to move away from its previous male-oriented menu and introduce new menu items, product reformulations and packaging, as part of its current owner 3G Capital's restructuring plans of the company.[6]

As of December 31, 2018, Burger King reported that it had 17,796 outlets in 100 countries.[7][8] Of these, nearly half are located in the United States, and 99.7% are privately owned and operated,[8] with its new owners moving to an almost entirely franchised model in 2013. Burger King has historically used several variations of franchising to expand its operations. The manner in which the company licenses its franchisees varies depending on the region, with some regional franchises, known as master franchises, responsible for selling franchise sub-licenses on the company's behalf. Burger King's relationship with its franchises has not always been harmonious. Occasional spats between the two have caused numerous issues, and in several instances, the company's and its licensees' relations have degenerated into precedent-setting court cases. Burger King's Australian franchise Hungry Jack's is the only franchise to operate under a different name, due to a trademark dispute with a similarly-named restaurant in Adelaide, South Australia and a series of legal cases between the two.[9]

History

The predecessor to Burger King was founded in 1953 in Jacksonville, Florida, as Insta-Burger King.[10] After visiting the McDonald brothers' original store location in San Bernardino, California, the founders and owners (Keith J. Kramer and his wife's uncle Matthew Burns), who had purchased the rights to two pieces of equipment called "Insta-machines", opened their first restaurants. Their production model was based on one of the machines they had acquired, an oven called the "Insta-Broiler". This strategy proved to be so successful that they later required all of their franchises to use the device.[11][12] After the company faltered in 1959, it was purchased by its Miami, Florida, franchisees, James McLamore and David R. Edgerton. They initiated a corporate restructuring of the chain, first renaming the company Burger King. They ran the company as an independent entity for eight years (eventually expanding to over 250 locations in the United States), before selling it to the Pillsbury Company in 1967.[11]: 28 

 
Burger King Big Whopper meal (burgers wrapped)

Pillsbury's management tried several times to restructure Burger King during the late 1970s and the early 1980s. The most prominent change came in 1978 when Burger King hired McDonald's executive Donald N. Smith to help revamp the company. In a plan called "Operation Phoenix",[12]: 118  Smith restructured corporate business practices at all levels of the company. Changes included updated franchise agreements,[13] a broader menu[12]: 119 [13]: 66  and new standardized restaurant designs. Smith left Burger King for PepsiCo in 1980[14] shortly before a system-wide decline in sales.

Pillsbury's Executive Vice President of Restaurant Operations Norman E. Brinker was tasked with turning the brand around, and strengthening its position against its main rival McDonald's. One of his initiatives was a new advertising campaign featuring a series of attack ads against its major competitors. This campaign started a competitive period between Burger King, McDonald's, and top burger chains known as the Burger wars.[15] Brinker left Burger King in 1984, to take over Dallas-based gourmet burger chain Chili's.[16]

Smith and Brinker's efforts were initially effective,[14] but after their respective departures, Pillsbury relaxed or discarded many of their changes, and scaled back on construction of new locations. These actions stalled corporate growth and sales declined again, eventually resulting in a damaging fiscal slump for Burger King and Pillsbury.[17][18] Poor operation and ineffectual leadership continued to bog down the company for many years.[18][19]

Pillsbury was eventually acquired by the British entertainment conglomerate Grand Metropolitan in 1989.[20][21] Initially, Grand Met attempted to bring the chain to profitability under newly minted CEO Barry Gibbons; the changes he initiated during his two-year tenure had mixed results, as successful new product introductions and tie-ins with The Walt Disney Company were offset by continuing image problems and ineffectual advertising programs.[22] Additionally, Gibbons sold off several of the company's assets in an attempt to profit from their sale and laid off many of its staff members.[23][24][25]

Burger King's headquarters experienced major damage in 1992 from Hurricane Andrew.

After Gibbon's departure, a series of CEOs each tried to repair the company's brand by changing the menu, bringing in new ad agencies and many other changes.[26][27][28] The parental disregard of the Burger King brand continued with Grand Metropolitan's merger with Guinness in 1997 when the two organizations formed the holding company Diageo.[29] Eventually, the ongoing systematic institutional neglect of the brand through a string of owners damaged the company to the point where major franchises were driven out of business, and its total value was significantly decreased.[30] Diageo eventually decided to divest itself of the money-losing chain and put the company up for sale in 2000.[31][32]

 
An example of the 20/20 concept interior at a Burger King in Cork, Ireland

The 21st century saw the company return to independence when it was purchased from Diageo by a group of investment firms led by TPG Capital for US$1.5 billion in 2002.[22][33] The new owners rapidly moved to revitalize and reorganize the company, culminating with the company being taken public in 2006 with a highly successful initial public offering.[5][34][35] The firms' strategy for turning the chain around included a new advertising agency and new ad campaigns,[36][37][38] a revamped menu strategy,[39] a series of programs designed to revamp individual stores,[40] a new restaurant concept called the BK Whopper Bar,[41] and a new design format called 20/20.[41] These changes successfully re-energized the company, leading to a score of profitable quarters.[42] Yet, despite the successes of the new owners, the effects of the financial crisis of 2007–2010 weakened the company's financial outlooks while those of its immediate competitor McDonald's grew.[42][43] The falling value of Burger King eventually led to TPG and its partners divesting their interest in the chain in a US$3.26 billion sale to 3G Capital of Brazil.[44][45] Analysts from financial firms UBS and Stifel Nicolaus agreed that 3G would have to invest heavily in the company to help reverse its fortunes.[45][46] After the deal was completed, the company's stock was removed from the New York Stock Exchange, ending a four-year period as a public company.[47][48] The delisting of its stock was designed to help the company repair its fundamental business structures and continue working to close the gap with McDonald's without having to worry about pleasing shareholders.[46] In the United States domestic market, the chain has fallen to third place in terms of same store sales behind Ohio-based Wendy's. The decline is the result of 11 consecutive quarters of same store sales decline.[49]

In August 2014, 3G announced that it planned to acquire the Canadian restaurant and coffee shop chain Tim Hortons and merge it with Burger King with backing from Warren Buffett's Berkshire Hathaway. The two chains will retain separate operations post-merger, with Burger King remaining in its Miami headquarters.[50] A Tim Hortons representative stated that the proposed merger would allow Tim Hortons to leverage Burger King's resources for international growth. The combined company will be the third-largest international chain of fast food restaurants.[51][52] The deal lead to a controversy over the practice of tax inversions, in which a company decreases the amount of taxes it pays by moving its headquarters to a tax haven, a country with lower rates but maintains the majority of their operations in their previous location. As a high-profile instance of tax inversion, news of the merger was criticized by U.S. politicians, who felt that the move would result in a loss of tax revenue to foreign interests, and could result in further government pressure against inversions.[52][53][54][55]

In 2019, Burger King reported that it planned to close up to 250 low-volume locations per year, with closures coming into effect in 2020.[56]

In February 2021, Burger King began testing a customer loyalty rewards program called "Royal Perks" in Los Angeles, Miami, New York City, New Jersey and Long Island, New York.[57]

Following the 2022 Russian invasion of Ukraine, a number of companies have faced growing pressure to halt operations in Russia, but have not yet done so. This included Burger King.[58][59][60][61][62] On March 10, 2022, Burger King suspended all its operations in Russia.[63][64] However, Burger King's local Russian partner, operating 800 Burger King stores in Russia, refused to close the sites in spite of the Burger King's demand to do so.[65]

In March 2022, Burger King suspended all its corporate support, including operations, marketing, supply chain, investments and expansion in Russia in response to the 2022 Russian invasion of Ukraine. It halted its corporate support to the more than 800 fully franchised restaurant chains in Russia managed by a local master franchisee.[63][64] However, the International Consortium of Investigative Journalism revealed that Burger King retained its stake in the Russian franchises through an offshore joint venture with the Russian state-owned VTB Bank and a Ukrainian investment firm linked to corrupt deals with Ukraine's former pro-Russian leader.[66]

In October 2023, Tom Curtis, president of Burger King U.S. & Canada, announced a new store design at its annual franchisee convention in Canada, branded "The Sizzle." It would remodel existing Burger King locations with a new look inside and outside, to tackle slowing business after the 2020 coronavirus pandemic. The overhaul would add more kiosks, dedicated pickup areas for mobile app orders, food-ordering platforms like Doordash, Uber Eats, and Grubhub, and would improve drive-thru service. As of October 10, 2023, there are already two Burger King locations in the United States with the "Sizzle" concept in effect, one in New Jersey, and the other in Las Vegas, Nevada. [67]

Structure and operations

 
Burger King restaurant in Bulacan, Philippines

Burger King Holdings is the parent company of Burger King, also known as Burger King Corporation and abbreviated BKC, and is a Delaware corporation formed on July 23, 2002.[68] A subsidiary, it derives its income from several sources, including property rental and sales through company owned restaurants;[68] however, a substantial portion of its revenue is dependent on franchise fees.[68] During the transitional period after the acquisition of the company by 3G Capital, Burger King's board of directors was co-chaired by John W. Chidsey, formerly CEO and chairman of the company, and Alex Behring, managing partner of 3G Capital.[69] By April 2011, the new ownership completed the restructuring of Burger King's corporate management and Chidsey tendered his resignation, leaving Behring as CEO and chair.[70]

The company operates approximately 40 subsidiaries globally that oversee franchise operations, acquisitions and financial obligations such as pensions.[68]: Exhibit 21.1  One example of a subsidiary is Burger King Brands, Inc. which is responsible for the management of Burger King's intellectual properties. A wholly owned subsidiary established in 1990,[71] Burger King Brands owns and manages all trademarks, copyrights and domain names used by the restaurants in the United States and Canada. It is also responsible for providing marketing and related services to the parent company.[72]

In 2011, the majority of Burger King restaurants, approximately 90%, were privately held franchises.[73] In North America, Burger King Corporation is responsible for licensing operators and administering of stores. Internationally, the company often pairs with other parties to operate locations or it will outright sell the operational and administrative rights to a franchisee which is given the designation of master franchise for the territory. The master franchise will then be expected to sub-license new stores, provide training support, and ensure operational standards are maintained. In exchange for the oversight responsibilities, the master franchise will receive administrative and advertising support from Burger King Corporation to ensure a common marketing scheme.[74][75] The 3G Capital ownership group announced in April 2011 that it would begin divesting itself of many corporate owned locations with the intent to increase the number of privately held restaurants to 95%.[73] As of 2016, the percentage of privately owned Burger King establishments grew to 99.5%.[8]

As the franchisor for the brand, Burger King Holdings has several obligations and responsibilities; the company designs and deploys corporate training systems while overseeing brand standards such as building design and appearance.[40][76][77] The company also develops new products and deploys them after presenting them to its franchises for approval per a 2010 agreement between itself and the franchise ownership groups.[73] Burger King has limited approval over franchise operations such as minimum hours of operation and promotional pricing.[78][79] Additionally, Burger King designates approved vendors and distributors while ensuring safety standards at the productions facilities of its vendors.[68]

Burger King was formerly headquartered in a nine-story office tower by the Miami International Airport in unincorporated Miami-Dade County, Florida.[80] Elaine Walker of the Miami Herald stated that the headquarters has a "Burger King" sign that drivers on State Road 836 "can't miss". In addition, the chain planned to build a neon sign on the roof to advertise the brand to passengers landing at the airport. On Monday July 8, 2002, 130 employees began working at the Burger King headquarters with the remainder moving in phases in August 2002. Prior to the moving to its current headquarters in 2002, Burger King had considered moving away from the Miami area to Texas; Miami-Dade County politicians and leaders lobbied against this, and Burger King stayed.[81] In August 2014, the future of the company's Miami headquarters was again in doubt as reports surfaced that Burger King was in talks about buying the Canadian restaurant chain Tim Hortons, with a view to relocating its headquarters to Canada where the corporate tax rate was lower.[82][83] The merger between Burger King and Tim Hortons created the fast food company now known as Restaurant Brands International Inc.[84]

Before 2002, the company's previous headquarters were in a southern Dade County campus located on Old Cutler Boulevard in the Cutler census-designated place.[85][86] The former Burger King headquarters as of 2007 houses rental offices for several companies.[87]

In 2016, Burger King signed a build-to-suit lease agreement on a new 150,000 square feet (14,000 m2) five-story headquarters building to be built at 5707 Blue Lagoon Drive, just down the street from its existing nine-story headquarters at 5505 Blue Lagoon Drive.[88] This was slightly smaller than the 200,000 square feet (19,000 m2) it was leasing in its current headquarters building at the time.[88] In 2018, Burger King moved into its new headquarters at 5707 Blue Lagoon Drive after it was finished, and then in 2019, Lennar moved into Burger King's old headquarters at 5505 Blue Lagoon Drive.[89]

Franchises

 
Burger King restaurant in Leicester Square, London, England

When Burger King Corporation began franchising in 1959, it used a regional model where franchisees purchased the right to open stores within a geographic region.[12]: 117 [13]: 64  These franchise agreements granted BKC very little oversight control of its franchisees and resulted in issues of product quality control, store image and design, and operational procedures.[12]: 118 [13]: 64 

During the 1970s, structural deficiencies in Burger King's franchise system became increasingly problematic for Pillsbury. A major example was the relationship between Burger King and Louisiana-based franchisee Chart House,[13]: 64  Burger King's largest franchisee group at the time with over 350 locations in the United States. The company's owners, William and James Trotter, made several moves to take over or acquire Burger King during the 1970s, all of which were spurned by Pillsbury.[22] After the failed attempts to acquire the company, the relationship between Chart House and Burger King soured and eventually devolved into a lawsuit.[22] Chart House eventually spun off its Burger King operations in the early 1980s into a holding company called DiversiFoods which, in turn, was acquired by Pillsbury in 1984 and absorbed into Burger King's operations.[90][91]

As part of the franchising reorganization segment of Operation Phoenix, Donald N. Smith initiated a restructuring of future franchising agreements in 1978. Under this new franchise agreement, new owners were disallowed from living more than one hour from their restaurants – restricting them to smaller individuals or ownership groups and preventing large, multi-state corporations from owning franchises. Franchisees were also now prohibited from operating other chains, preventing them from diverting funds away from their Burger King holdings. This new policy effectively limited the size of franchisees and prevented larger franchises from challenging Burger King Corporation as Chart House had.[13]: 64  Smith also sought to have BKC be the primary owner of new locations and rent or lease the restaurants to its franchises. This policy would allow the company to take over the operations of failing stores or evict those owners who would not conform to the company guidelines and policies.[22] By 1988, parent company Pillsbury had relaxed many of Smith's changes, scaling back on construction of new locations, which resulted in stalled growth of the brand.[17] Neglect of Burger King by new owner Grand Metropolitan and its successor Diageo[30] further hurt the standing of the brand, causing significant financial damage to BK franchises and straining relations between the parties.[92]

 
A Burger King franchise adapted to operate in the historic district of Oaxaca, Mexico

By 2001 and after nearly 18 years of stagnant growth, the state of its franchises was beginning to affect the value of the company. One of the franchises most heavily affected by the lack of growth was the nearly 400-store AmeriKing Inc., one of the largest Burger King franchisees.[93] By 2002, the franchise owner, which until this point had been struggling under a nearly US$300 million debt load and been shedding stores across the US, was forced to enter Chapter 11 bankruptcy.[94] The failure of AmeriKing deeply affected the value of Burger King, and put negotiations between Diageo and the TPC Capital-led group on hold. The developments eventually forced Diageo to lower the total selling price of the chain by almost $750 million.[92] After the sale, newly appointed CEO Brad Blum initiated a program to help roughly 20 percent of its franchises, including its four largest, who were in financial distress, bankruptcy or had ceased operations altogether.[95] Partnering with California-based Trinity Capital, LLC, the company established the Franchisee Financial Restructuring Initiative, a program to address the financial issues facing BK's financially distressed franchisees. The initiative was designed to assist franchisees in restructuring their businesses to meet financial obligations, focus on restaurant operational excellence, reinvest in their operations, and return to profitability.[96]

Individual franchisees took advantage of the AmeriKing failure; one of BK's regional owners, Miami-based Al Cabrera, purchased 130 stores located primarily in the Chicago and the upper mid-west region, from the failed company for a price of $16 million, approximately 88 percent of their original value. The new company, which started out as Core Value Partners and eventually became Heartland Foods, also purchased 120 additional stores from distressed owners and revamped them. The resulting purchases made Cabrera the largest minority franchisee of Burger King, and Heartland one of the company's top franchises.[97] By 2006, the company was valued at over $150 million, and was sold to New York–based GSO Capital Partners.[98] Other purchasers included a three-way group of NFL athletes Kevin Faulk, Marcus Allen, and Michael Strahan who collectively purchased 17 stores in the cities of Norfolk and Richmond, Virginia;[99] and Cincinnati-based franchisee Dave Devoy, who purchased 32 AmeriKing stores. After investing in new decor, equipment and staff retraining, many of the formerly failing stores showed growth approaching 20 percent.[30]

As part of 3G's restructuring plan, the company decided to divest itself of its corporate owned locations by re-franchising them to private owners and become a 100% franchised operation by the end of 2013. The project, which began in April 2012, saw the company divest corporate-owned locations in Florida, Canada, Spain, Germany, and other regions.[100][101][102] The move gave the company a Q3, 2013 profit of US$68.2 million over the same quarter, 2012 of US$6.6 million.[100]

At the end of its 2013 fiscal year, Burger King was the second largest chain of hamburger fast food restaurants in terms of global locations,[68]: 123  behind industry bellwether McDonald's, which had 32,400 locations. At the end of 2014, Burger King ranked fourth among US food chains in terms of US sales, behind McDonald's, Starbucks, and Subway.[103] Burger King now has over 12,000 stores worldwide.[104]

In January 2024, Restaurant Brands International, the owner of the brand, announced it would purchase the largest franchisee of the chain, Carrols Restaurant Group, for around $1 billion. At the time of the announcement, Carrols had 1,022 Burger King locations (along with 60 Popeyes locations). The goal was to remodel 600 of the restaurants, then sell them back to franchisees over five to seven years. The move represented a departure from the existing model of largely franchising locations. [105][106][107]

International operations

 
Burger King located in Karl Johan's Street, Oslo, Norway

While BK began its foray into locations outside of the continental United States in 1963 with a store in San Juan, Puerto Rico,[108] it did not have an international presence until several years later. Shortly after the acquisition of the chain by Pillsbury, it opened its first Canadian restaurant in Windsor, Ontario in 1969.[13]: 66 [109] Other international locations followed soon after, including Australia in 1971, with a restaurant in the Perth suburb of Innaloo, and Europe in 1975, with a restaurant in Madrid.[110][111] Beginning in 1982, BK and its franchisees began operating stores in several East Asian countries, including Japan, Taiwan, Singapore and South Korea.[22] Due to high competition, all of the Japanese locations were closed in 2001; however, BK reentered the Japanese market in June 2007.[112] BK's Central and South American operations began in Mexico in the late 1970s and by the early 1980s in Caracas, Venezuela, Santiago, Chile, and Buenos Aires, Argentina.[22] While Burger King lags behind McDonald's in international locations by over 12,000 stores, as of 2008 it had managed to become the largest chain in several countries including Mexico and Spain.[113]

 
Burger King located at Helsinki Central Station in Helsinki, Finland

The company divides its international operations into three segments; the Middle East, Europe and Africa division (EMEA), Asia-Pacific (APAC) and Latin America and the Caribbean (LAC).[68]: 5  In each of these regions, Burger King has established several subsidiaries to develop strategic partnerships and alliances to expand into new territories. In its EMEA group, Burger King's Switzerland-based subsidiary Burger King Europe GmbH is responsible for the licensing and development of BK franchises in those regions.[68]: 5, Exhibit 21:1 [114] In APAC region, the Singapore-based BK AsiaPac, Pte. Ltd. business unit handles franchising for East Asia, the Asian subcontinent and all Oceanic territories.[68]: 6, Exhibit 21:1 [74][115] The LAC region includes Mexico, Central and South America and the Caribbean Islands and has no centralized operations group.[68]: 6, Exhibit 21:1 

 
Burger King at the Skopje Airport, North Macedonia

Australia is the only country in which Burger King does not operate under its own name.[68]: 6  When the company set about establishing operations down under in 1971, it found that its business name was already trademarked by a takeaway food shop in Adelaide.[116] As a result, Burger King provided the Australian franchisee, Jack Cowin, with a list of possible alternative names derived from pre-existing trademarks already registered by Burger King and its then corporate parent Pillsbury, that could be used to name the Australian restaurants. Cowin selected the "Hungry Jack" brand name, one of Pillsbury's US pancake mixture products, and slightly changed the name to a possessive form by adding an apostrophe "s" forming the new name Hungry Jack's.[110][117] After the expiration of the trademark in the late 1990s, Burger King unsuccessfully tried to introduce the brand to the continent. After losing a lawsuit filed against it by Hungry Jack's ownership, the company ceded the territory to its franchisee.[110] Hungry Jack's is now the only Burger King brand in Australia; Cowin's company Hungry Jack's Pty Ltd. is the master franchise and thus is now responsible for oversight of the operations that country with Burger King only providing administrative and advertising support to ensure a common marketing scheme for the company and its products.[75]

 
Burger King in Zhengzhou, China

Over a 10-year period starting in 2008, Burger King predicted 80 percent of its market share would be driven by foreign expansion, particularly in the Asia-Pacific and Indian subcontinent regional markets.[118] While the TPG-led group continued BK's international expansion by announcing plans to open new franchise locations in Eastern Europe, Africa and the Middle East, and Brazil, the company plan is focusing on the three largest markets – India, China, and Japan.[119][120][121][122] The company plans to add over 250 stores in these Asian territories, as well as other places such as Macau, by the end of 2012.[123] Its expansion into the Indian market has the company at a competitive disadvantage with other fast food restaurants such as KFC because of the aversion of the country's large Hindu majority to beef. BK hopes to use their non-beef products, such as their TenderCrisp and TenderGrill chicken sandwiches, as well as other products like mutton sandwiches and veggie sandwiches, to help them overcome this hurdle to expand in that country.[118][124] 3G has reported that it will continue with the plans to grow globally, even ramping up the planned expansion to help increase their return on investment.[21]: 1  It is expected that 3G Brazilian-based management connections in the region may help Burger King expand in Brazil and Latin America, where it has been having problems finding acceptable franchisees.[21]: 2 [125]

In December 2020, Burger King India went in for an initial public offering (IPO) on the BSE and NSE in India. The IPO was subscribed over 150 times.[126] The stock opened at ₹112.5 per share on December 14, nearly double the IPO price of ₹60, and closed at ₹135.[127]

Legal cases

 
The Burger King restaurant in Mattoon, Illinois, originally owned by the Hoots family. This location was one subject of major litigation by Burger King.

Burger King has been involved in several legal disputes and cases, as both plaintiff and defendant, in the years since its founding in 1954. Depending on the ownership and executive staff at the time of these incidents, the company's responses to these challenges have ranged from a conciliatory dialog with its critics and litigants, to a more aggressive opposition with questionable tactics and negative consequences.[128][129][130][131] The company's response to these various issues has drawn praise[132][133] as well as, in some instances, suggestions of political appeasement.[134]

A trademark dispute involving the owners of an unrelated restaurant also named Burger King in Mattoon, Illinois, led to a federal lawsuit. As a result, the larger Burger King chain was ordered not to build any franchises within a 20-mile radius of the Mattoon Burger King.[135] An existing trademark held by a shop of the same name in South Australia forced the company to change its name in Australia to "Hungry Jack's,"[136] while another state trademark in Texas forced the company to abandon its signature product, the Whopper, in several counties around San Antonio.[137] The company was only able to enter northern Alberta, in Canada, in 1995, after it paid the founders of another chain named Burger King.[138]

Legal decisions from other suits have set contractual law precedents in regards to long-arm statutes, the limitations of franchise agreements, and ethical business practices.[139][140] Many of these decisions have helped define general business dealings that continue to shape the entire marketplace.[141][142][143]

Controversies and disputes have arisen with groups such as People for the Ethical Treatment of Animals (PETA), governmental and social agencies, and unions and trade groups over various topics. These situations have touched on legal and moral concepts such as animal rights, corporate responsibility,[144] ethics,[145] and social justice.[145] While the majority of the disputes did not result in lawsuits, in many of the cases, the situations raised legal questions, dealt with legal compliance, or resulted in legal remedies such as changes in contractual procedure or binding agreements between parties. The resolutions to these legal matters have often altered the way the company interacts and negotiates contracts with its suppliers and franchisees, or how it does business with the public.[132][133][146][147]

Further controversies have occurred during the company's expansion in the Middle East. The opening of a Burger King location in Ma'aleh Adumim, an Israeli settlement in the Israeli-occupied Palestinian territories, led to a breach of contract dispute between Burger King and its Israeli franchise due to the hotly contested international dispute over the legality of Israeli settlements in the Palestinian territories in accordance to international law. The controversy eventually erupted into a geopolitical dispute involving Muslim and Jewish groups on multiple continents over the application of, and adherence to, international law.[148][149][150] The case eventually elicited reactions from the members of the 22-nation Arab League. The Islamic countries within the League made a joint threat to the company of legal sanctions including the revocation of Burger King's business licenses within the member states' territories.[149][150][151]

A related issue involving members of the Islamic faith over the interpretation of the Muslim version of canon law, Shariah, regarding the promotional artwork on a dessert package in the United Kingdom raised issues of cultural sensitivity,[152] and, with the former example, posed a larger question about the lengths that companies must go to, to ensure the smooth operation of their businesses in the communities they serve.[134]

On April 9, 2019, Nations Restaurant News reported that Burger King filed a lawsuit on Fritz Management LLC to remove Burger King trademarks from 37 units in South Texas after unsanitary conditions were found at a restaurant in Harlingen, Texas.[153] In May 2019, the lawsuit was settled with the franchisee, Fritz Management (a subsidiary of Sun Holdings Inc), keeping the trademarks on all 37 units.[154][155]

On November 19, 2019, a lawsuit was filed by a vegan from Atlanta, Georgia against Burger King for allegedly failing to clearly disclose that Impossible Whopper burgers were heated on the same grill as their beef burgers.[156] The lawsuit was dismissed.[157]

On March 28, 2022, a lawsuit was filed against Burger King, alleging the fast food chain falsely advertised the Whopper to "look about 35% bigger in its advertising than it is in reality."[158][159]

Charitable contributions and services

Burger King has two in-house national charitable organizations and programs. One is the Have It Your Way Foundation, a U.S.-based non-profit (501(c)(3)) corporation with multiple focuses on hunger alleviation, disease prevention and community education through scholarship programs at colleges in the U.S.[160] The other charitable organization is the McLamore Foundation, also a non-profit, 501(c)(3) corporation that provides scholarships to students in the U.S. and its territories.[161]

In various regions across the United States, Burger King and its franchises have aligned themselves with several charitable organizations that support research and treatment of juvenile cancer. Each year, these coalitions hold a fund raising drive called "A Chance for Kids," in which Burger King restaurants sell lottery-style scratch cards for $1. Each card produces a winning prize that is usually a food or beverage product, but includes (rarer) items such as shopping sprees or trips. In the Northeast, BK has affiliated itself with the Major League Baseball team the Boston Red Sox and its charitable foundation, the Jimmy Fund. The group runs the contest in Boston. In the New York City area, it operates the contest in association with the Burger King Children's Charities of Metro New York and the New York Yankees. Funds raised in these areas go to support the Dana–Farber Cancer Institute, located in Boston.[162][163] In Nebraska, the company is affiliated with the Liz's Legacy Cancer Fund "BK Beat Cancer for Kids" program at the UNMC Eppley Cancer Center at the University of Nebraska Medical Center in Omaha.[164] In the Pittsburgh region, it funded the establishment of the Burger King Cancer Caring Center, a support organization for the families and friends of cancer patients.[165]

Products

 
The Whopper sandwich, Burger King's signature product

When the predecessor of Burger King first opened in Jacksonville in 1953, its menu consisted predominantly of basic hamburgers, French fries, soft drinks, milkshakes, and desserts. After being acquired by its Miami, Florida, franchisees and renamed to its current moniker in 1954, BK began expanding the breadth of its menu by adding the Whopper sandwich in 1957. This quarter-pound (4 oz (110 g)) hamburger was created by Burger King's new owners James McLamore and David Edgerton as a way to differentiate BK from other burger outlets at the time.[166] Since its inception, the Whopper has become synonymous with Burger King and has become the focus of much of its advertising.[167] The company even named its new kiosk-style restaurants Whopper Bars.[168]

The menu component of Donald Smith's Operation Phoenix was initiated in 1978 and led to the addition of the Burger King Specialty Sandwich line in 1979. The new product line significantly expanded the breadth of the BK menu with many non-hamburger sandwiches, including new chicken and fish offerings. The new Specialty Sandwich line was one of the first attempts to target a specific demographic, in this case, adults 18–34, who would be willing to spend more on a higher quality product.[12]: 119  One of Smith's other significant contributions to the menu was the addition of a breakfast product line, which until this time was not a market Burger King had entered.[22] Besides the addition of the Croissan'Wich in 1983, the breakfast menu remained almost identical to the McDonald's offerings until a menu revamp in 1985.[22] This expansion introduced BK's "AM Express" product line, which added new products such as French toast sticks and mini-muffins.[169]

As the company expanded both inside and outside the US, it introduced localized versions of its products that conform to regional tastes and cultural or religious beliefs. International variations add ingredients such as teriyaki or beetroot and fried egg to the Whopper;[170] beer in Germany, Italy, and Spain; and halal or kosher products in the Middle East and Israel.[171][172][173] To generate additional sales, BK will occasionally introduce limited time offers (LTOs) that are versions of its core products, or new products intended for either long or short term sales. Items such as the Texas Double Whopper and various sandwiches made with mushrooms and Swiss cheese have been rotated in and out of its menu for several years,[174][175] while products such as its 1993 Meatloaf Specialty Sandwich offering and accompanying limited table service, along with special dinner platters, failed to generate interest and were discontinued.[176][177]

 
A meal including small French fries, a Whopper Jr., a drink, and packets of Heinz ketchup

In order to appeal to as many demographic groups as possible and better compete with its competitor, Wendy's, Burger King added a multi-tiered value menu in 1993 with items priced at 99¢, US$1.99 and $2.99.[22] The additions, part of then CEO James Adamson's back-to-basics program called Operation Phoenix, were an attempt to add not only a value menu, but also a line of value meals.[178] The tiered menu was replaced with a more standard value menu in 1998 while the value meals were separated into their own menu segment.[179] This value menu featured seven products: Whopper Jr., five-piece Chicken Tenders, a bacon cheeseburger, medium-sized French fries, medium soft drink, medium onion rings, and a small milkshake. In 2002 and 2006, BK revamped its value menu, adding and removing several different products such as chili and its Rodeo Cheeseburger.[180] Many of these items have since been discontinued, modified or relegated to a regional menu option.[181] To better appeal to a more adult palate and demographic, BK introduced several new products to its menu in 2003, including several new or revamped chicken products, a new salad line and its BK Joe brand of coffee. Some of the new products, including their Enormous Omelet Sandwich line and the BK Stacker line, brought negative attention due to the large portion size, and amounts of unhealthy fats and trans-fats.[182][183][184] Many of these products featured higher quality ingredients like whole chicken breast, Angus beef, and natural cheeses such as cheddar and pepper jack.[185] Again, not all these products, such as the BK Baguette line, have met sales expectations.[36]

With the purchase of the company in 2010, 3G began a program to restructure its menu designed to move away from the male-oriented menu that had dominated under the previous ownership. The first major item to be introduced was a reformulation of its BK Chicken Tenders product in March 2011.[186] Over the next few months, approximately 20 new products were developed while others were reformulated, including its Chef's Choice Burger.[187] Eventually pruned down to 10 items, Burger King began deploying the items in the United States throughout 2011–2012 with the official roll out beginning April 2012. The changes included new soft serve products, smoothies, frappés and chicken strips. The Whopper was the most prominently reformulated product in this round of introductions with a new type of cheese and packaging.[49]

At the end of 2015, Burger King's parent company, Restaurant Brands International, announced that none of its subsidiaries would use chicken that had been fed antibiotics that are "critically important" to human health; that announcement referred only to a small class of antibiotics for which there is only one drug that kill a kind of bacteria and the announcement was described as a "small step" by advocates for stopping all antibiotic use in livestock.[188]

In 2019, Burger King released an "Impossible Whopper" burger, a vegetarian burger using a plant-based patty from Impossible Foods.[189]

In February 2020, Burger King announced that it would remove artificial preservatives, colors, and flavors from the Whopper by the end of 2020.[190] In July 2020, BK announced it would begin selling a Whopper patty made from cows on a low methane diet.[191]

In late 2021 and early 2022, the company announced it would cut back on value items and altered product configuration because of inflationary pressures and to speed up drive-thru lanes.[192][193][194][195][196]

After successfully testing vegan products at meat-free temporary restaurants in Leicester Square and Bristol, Burger King UK announced that in 2023 it would offer a Vegan Royale Bakon King, made with vegan bacon, vegan cheese and a vegan burger made by The Vegetarian Butcher.[197]

Equipment

 
Food being prepared in a Burger King kitchen in Italy

Like its menu, the equipment the company cooks its hamburgers with has also evolved as the company expanded. The burgers have always been broiled mechanically; the original unit, called an Insta-Broiler, was one of two pieces of equipment the founders of Insta-Burger King purchased before opening their new restaurant.[11]: 27 [166] The Insta-Broiler worked by cooking 12 burger patties in a wire basket, allowing the patties to be cooked from both sides simultaneously.[11]: 27  When McLamore and Edgerton took over the company, besides dropping the "Insta-" prefix, they switched to an improved unit called a "Flame Broiler." Designed by the two and featuring stationary burners that cooked the meat on a moving chain, the unit broke down less often while maintaining a similar cooking rate.[166] The company would stay with that format for the next 40 years until Burger King began developing a variable speed broiler that could handle multiple items with different cooking rates and times.[198][199][200] These new units began testing in 1999 and eventually evolved into the two models the company deployed system-wide in 2008–2009. Accompanying these new broilers was new food-holding equipment, accompanied with a computer-based product monitoring system for its cooked products.[201] The monitoring system allows for more concise tracking of product quality while giving the company and its franchisees a method to streamline costs by more precisely projecting sales and product usage.[202]

Advertising

 
The Burger King "crown", worn by Nick Van Eede

Since its founding in 1954, Burger King has employed varied advertising programs, both successful and unsuccessful. During the 1970s, output included its "Hold the pickles, hold the lettuce..." jingle, the inspiration for its current mascot the Burger King, and several well known and parodied slogans such as "Have it your way" and "It takes two hands to handle a Whopper".[203][204][205] Burger King introduced the first attack ad in the fast food industry with a pre-teen Sarah Michelle Gellar in 1981. The television spot, which claimed BK burgers were larger and better tasting than competitor McDonald's,[13]: 66  so enraged executives at McDonald's parent company that they sued all parties involved.[206] Starting in the early 1980s and running through approximately 2001, BK engaged a series of ad agencies that produced many unsuccessful slogans and programs, including its biggest advertising flop "Where's Herb?"[207][208]

Burger King was a pioneer in the advertising practice known as the "product tie-in", with a successful partnership with George Lucas' Lucasfilm, Ltd., to promote the 1977 film Star Wars in which BK sold a set of beverage glasses featuring the main characters from the movie.[209][210] This promotion was one of the first in the fast food industry and set the pattern that continues to the present. BK's early success in the field was overshadowed by a 1982 deal between McDonald's and The Walt Disney Company to promote Disney's animated films beginning in the mid-1980s and running through the early 1990s. In 1994, Disney switched from McDonald's to Burger King, signing a 10-movie promotional contract which would include such top 10 films as Aladdin (1992), Beauty and the Beast (1991), The Lion King (1994), and Toy Story (1995).[22] A partnership in association with the Pokémon franchise at the height of its popularity in 1999 was tremendously successful for the company, with many locations rapidly selling out of the toys and the replacements.[211] In December 1999, two hazardous incidents involving the Pokéball toy, one of which caused the death of a 13-month-old child, led to the toy being recalled.

Shortly after the acquisition of Burger King by TPG Capital, L.P. in 2002, its new CEO Brad Blum set about turning around the fortunes of the company by initiating an overhaul of its flailing advertising programs. One of the first moves by the company was to reinstate its famous "Have it your way" slogan as the corporate motto. BK handed the effort off to its new advertising agency, Miami-based Crispin Porter + Bogusky (abbreviated as CP+B). CP+B was known for having a hip, subversive tack when creating campaigns for its clients, exactly what BK was looking for.[36][37] One of CP+B strategies was to revive the Burger King character used during BK's 1970s/1980s Burger King Kingdom children's advertising campaign as a caricatured variation, now simply called "the King".[212][213] The farcical nature of "the Burger King" centered advertisements inspired an internet meme where the King is edited into unusual situations that are either comical or menacing, many times followed with the phrase "Where is your God now?"

Additionally, CP+B created a series of new characters like the Subservient Chicken and the faux nu-metal band Coq Roq, featured in a series of viral web-based advertisements on sites such as MySpace and various BK corporate pages, to complement various television and print promotional campaigns.[214][215][216] One of the more successful promotions that CP+B devised was the creation of a series of three advergames for the Xbox 360.[217][218] Created by UK-based Blitz Games and featuring company celebrity spokesman Brooke Burke, the games sold more than 3.2 million copies, placing them as one of the top selling games along with another Xbox 360 hit, Gears of War.[218][219] These ad campaigns, coupled with other new promotions and a series of new product introductions, drew positive and negative attention to BK and helped TPG and its partners realize about US$367 million in dividends.[220][221]

With the late-2000s recession hitting the 18–35 demographic targeted by the CP+B created ads particularly hard, the company saw its market share decline and the company move into the red. After the completion of the sale of the company in late 2010, the new ownership group terminated Burger King's seven-year relationship with CP+B and hired rival firm McGarryBowen to create a new campaign with an expanded market reach.[222] As part of the new campaign, McGarryBowen terminated the use of The Burger King in the company's advertising program in favor of a new program that focused on the food and ingredients in its new advertising campaigns.[223]

In recent years, Burger King has turned to trolling fast food rival McDonald's with their advertising strategy. The company's tactics have included LOLA MullenLowe's "Scary Clown Night" which offered a free Whopper to anyone dressed as a clown (McDonald's mascot) on Halloween; FCB New York's Whopper Detour initiative, which encouraged mobile app users to go to a nearby McDonald's in order to unlock a 1-center Whopper; and Ingo's "The Not Big Macs" menu, which poked fun at McDonald's recent loss of the Big Mac trademark in the EU.[224]

In February 2019, the company launched an advertising campaign called "Eat Like Andy". The television spot which premiered during the Super Bowl LIII features archival documentary film footage from "66 Scenes from America" by Jørgen Leth of the pop artist Andy Warhol (1928–1987) unwrapping and eating a Whopper. The footage was approved for use by the fast food giant courtesy of the Andy Warhol Foundation. Meanwhile, prior to the game, the mass market hamburger chain made available to viewers who ordered it in advance via DoorDash an "Andy Warhol Mystery Box" which contains among other items a plastic bottle of ketchup and a platinum wig so one can "Eat Like Andy".[225][226]

Burger King Twitter
@BurgerKingUK

Women belong in the kitchen.

March 8, 2021[1]

Burger King Twitter
@BurgerKingUK

If they want to, of course. Yet only 20% of chefs are women. We're on a mission to change the gender ratio in the restaurant industry by empowering female employees with the opportunity to pursue a culinary career. #IWD

March 8, 2021[2]

Burger King Twitter
@BurgerKingUK

We are proud to be launching a new scholarship programme which will help female Burger King employees pursue their culinary dreams!

March 8, 2021[227]

On March 8, 2021, Burger King was criticized for their International Women's Day marketing campaign, after a tweet from Burger King UK stated, "Women belong in the kitchen."[228] The tweets were labeled as sexist by thousands of Twitter users[229] and dozens of news publications.[230][231][232] Burger King UK followed up, stating "We're on a mission to change the gender ratio in the restaurant industry."[229] However, critics say the damage has already been done. The initial tweet received high amounts of recognition and viewer interaction, while the replies received a fraction of the coverage, meaning only a few people are aware of the clarifications made by Burger King.[233] After severe backlash, Burger King deleted the tweet 12 hours later and posted an apology stating, "We got our initial tweet wrong and we're sorry."[234]

In late 2022, Burger King released the "Have it Your Way" commercials, going viral on social media such as TikTok after the 2022–23 NFL playoffs because of its large amount of repetition and catchiness. The ads gained media attention and made their way onto music streaming services such as Spotify in February 2023.[235]

See also

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External links

  • Official website
  • Official news & press
  • Burger King McLamore Foundation June 12, 2018, at the Wayback Machine
  • Liz's Legacy Cancer Fund BK Beat Cancer for Kids
  • Business data for Burger King:
    • Google
    • SEC filings
    • Yahoo!
  • at the Wayback Machine (archived March 24, 2002)
  • . Archived from the original on April 19, 2001. Retrieved December 9, 2013.
  • . Archived from the original on October 12, 1997. Retrieved May 18, 2005.
  • . Archived from the original on December 26, 1996. Retrieved November 10, 2016.

25°46′57.99″N 80°17′14.56″W / 25.7827750°N 80.2873778°W / 25.7827750; -80.2873778

burger, king, this, article, about, restaurant, chain, other, uses, disambiguation, corporation, stylized, caps, american, multinational, chain, hamburger, fast, food, restaurants, headquartered, miami, dade, county, florida, company, founded, 1953, insta, jac. This article is about the restaurant chain For other uses see Burger King disambiguation Burger King Corporation BK stylized in all caps is an American multinational chain of hamburger fast food restaurants Headquartered in Miami Dade County Florida the company was founded in 1953 as Insta Burger King a Jacksonville Florida based restaurant chain After Insta Burger King ran into financial difficulties its two Miami based franchisees David Edgerton 1927 2018 and James McLamore 1926 1996 purchased the company in 1959 and renamed it Burger King 5 Over the next half century the company changed hands four times and its third set of owners a partnership of TPG Capital Bain Capital and Goldman Sachs Capital Partners took it public in 2002 In late 2010 3G Capital of Brazil acquired a majority stake in the company in a deal valued at US 3 26 billion The new owners promptly initiated a restructuring of the company to reverse its fortunes 3G along with partner Berkshire Hathaway eventually merged the company with the Canadian based doughnut chain Tim Hortons under the auspices of a new Canadian based parent company named Restaurant Brands International Burger King CorporationLogo used since 2020Former corporate headquarters in Miami Dade County Florida now home to Lennar TypeSubsidiaryIndustryRestaurantsGenreFast food restaurantPredecessorInsta Burger KingFoundedInsta Burger King 1953 71 years ago 1953 Jacksonville Florida U S Burger King 1954 70 years ago 1954 Miami Florida U S FounderInsta Burger King Keith J Kramer and Matthew BurnsBurger King David Edgerton and James McLamoreHeadquarters5707 Blue Lagoon Drive Miami Dade County Florida U S Number of locations19 247 2021 1 2 Area servedGlobalKey peopleJoshua Kobza CEO RBI Tom Curtis president Burger King Americas 1 2 ProductsHamburgers Chicken French fries Onion rings Soft drinks Milkshakes Salads Desserts BreakfastRevenueUS 1 81 billion 2021 1 2 US 23 45 billion system wide sales Operating income363 000 000 United States dollar 2012 Net incomeUS 1 02 billion 2021 1 2 Total assetsUS 4 94 billion 2021 1 2 ParentRestaurant Brands InternationalWebsitebk wbr comFootnotes references 3 4 1 2 The 1970s were the Golden Age of the company s advertising but beginning in the mid 1980s Burger King advertising began losing focus A series of less successful advertising campaigns created by a procession of advertising agencies continued for the next two decades In 2003 Burger King hired the Miami based advertising agency Crispin Porter Bogusky CP B which completely reorganized its advertising with a series of new campaigns centered on a redesigned Burger King character nicknamed The King accompanied by a new online presence While highly successful some of CP B s commercials were derided for perceived sexism or cultural insensitivity Burger King s new owner 3G Capital later terminated the relationship with CP B in 2011 and moved its advertising to McGarryBowen to begin a new product oriented campaign with expanded demographic targeting Burger King s menu has expanded from a basic offering of burgers French fries sodas and milkshakes to a larger and more diverse set of products In 1957 the Whopper became the first major addition to the menu and it has become Burger King s signature product since Conversely Burger King has introduced many products which failed to catch hold in the marketplace Some of these failures in the United States have seen success in foreign markets where Burger King has also tailored its menu for regional tastes From 2002 to 2010 Burger King aggressively targeted the 18 34 male demographic with larger products that often carried correspondingly large amounts of unhealthy fats and trans fats This tactic would eventually damage the company s financial underpinnings and cast a negative pall on its earnings Beginning in 2011 the company began to move away from its previous male oriented menu and introduce new menu items product reformulations and packaging as part of its current owner 3G Capital s restructuring plans of the company 6 As of December 31 2018 Burger King reported that it had 17 796 outlets in 100 countries 7 8 Of these nearly half are located in the United States and 99 7 are privately owned and operated 8 with its new owners moving to an almost entirely franchised model in 2013 Burger King has historically used several variations of franchising to expand its operations The manner in which the company licenses its franchisees varies depending on the region with some regional franchises known as master franchises responsible for selling franchise sub licenses on the company s behalf Burger King s relationship with its franchises has not always been harmonious Occasional spats between the two have caused numerous issues and in several instances the company s and its licensees relations have degenerated into precedent setting court cases Burger King s Australian franchise Hungry Jack s is the only franchise to operate under a different name due to a trademark dispute with a similarly named restaurant in Adelaide South Australia and a series of legal cases between the two 9 Contents 1 History 2 Structure and operations 3 Franchises 4 International operations 5 Legal cases 6 Charitable contributions and services 7 Products 7 1 Equipment 8 Advertising 9 See also 10 References 11 External linksHistoryMain article History of Burger KingThe predecessor to Burger King was founded in 1953 in Jacksonville Florida as Insta Burger King 10 After visiting the McDonald brothers original store location in San Bernardino California the founders and owners Keith J Kramer and his wife s uncle Matthew Burns who had purchased the rights to two pieces of equipment called Insta machines opened their first restaurants Their production model was based on one of the machines they had acquired an oven called the Insta Broiler This strategy proved to be so successful that they later required all of their franchises to use the device 11 12 After the company faltered in 1959 it was purchased by its Miami Florida franchisees James McLamore and David R Edgerton They initiated a corporate restructuring of the chain first renaming the company Burger King They ran the company as an independent entity for eight years eventually expanding to over 250 locations in the United States before selling it to the Pillsbury Company in 1967 11 28 nbsp Burger King Big Whopper meal burgers wrapped Pillsbury s management tried several times to restructure Burger King during the late 1970s and the early 1980s The most prominent change came in 1978 when Burger King hired McDonald s executive Donald N Smith to help revamp the company In a plan called Operation Phoenix 12 118 Smith restructured corporate business practices at all levels of the company Changes included updated franchise agreements 13 a broader menu 12 119 13 66 and new standardized restaurant designs Smith left Burger King for PepsiCo in 1980 14 shortly before a system wide decline in sales Pillsbury s Executive Vice President of Restaurant Operations Norman E Brinker was tasked with turning the brand around and strengthening its position against its main rival McDonald s One of his initiatives was a new advertising campaign featuring a series of attack ads against its major competitors This campaign started a competitive period between Burger King McDonald s and top burger chains known as the Burger wars 15 Brinker left Burger King in 1984 to take over Dallas based gourmet burger chain Chili s 16 Smith and Brinker s efforts were initially effective 14 but after their respective departures Pillsbury relaxed or discarded many of their changes and scaled back on construction of new locations These actions stalled corporate growth and sales declined again eventually resulting in a damaging fiscal slump for Burger King and Pillsbury 17 18 Poor operation and ineffectual leadership continued to bog down the company for many years 18 19 Pillsbury was eventually acquired by the British entertainment conglomerate Grand Metropolitan in 1989 20 21 Initially Grand Met attempted to bring the chain to profitability under newly minted CEO Barry Gibbons the changes he initiated during his two year tenure had mixed results as successful new product introductions and tie ins with The Walt Disney Company were offset by continuing image problems and ineffectual advertising programs 22 Additionally Gibbons sold off several of the company s assets in an attempt to profit from their sale and laid off many of its staff members 23 24 25 Burger King s headquarters experienced major damage in 1992 from Hurricane Andrew After Gibbon s departure a series of CEOs each tried to repair the company s brand by changing the menu bringing in new ad agencies and many other changes 26 27 28 The parental disregard of the Burger King brand continued with Grand Metropolitan s merger with Guinness in 1997 when the two organizations formed the holding company Diageo 29 Eventually the ongoing systematic institutional neglect of the brand through a string of owners damaged the company to the point where major franchises were driven out of business and its total value was significantly decreased 30 Diageo eventually decided to divest itself of the money losing chain and put the company up for sale in 2000 31 32 nbsp An example of the 20 20 concept interior at a Burger King in Cork IrelandThe 21st century saw the company return to independence when it was purchased from Diageo by a group of investment firms led by TPG Capital for US 1 5 billion in 2002 22 33 The new owners rapidly moved to revitalize and reorganize the company culminating with the company being taken public in 2006 with a highly successful initial public offering 5 34 35 The firms strategy for turning the chain around included a new advertising agency and new ad campaigns 36 37 38 a revamped menu strategy 39 a series of programs designed to revamp individual stores 40 a new restaurant concept called the BK Whopper Bar 41 and a new design format called 20 20 41 These changes successfully re energized the company leading to a score of profitable quarters 42 Yet despite the successes of the new owners the effects of the financial crisis of 2007 2010 weakened the company s financial outlooks while those of its immediate competitor McDonald s grew 42 43 The falling value of Burger King eventually led to TPG and its partners divesting their interest in the chain in a US 3 26 billion sale to 3G Capital of Brazil 44 45 Analysts from financial firms UBS and Stifel Nicolaus agreed that 3G would have to invest heavily in the company to help reverse its fortunes 45 46 After the deal was completed the company s stock was removed from the New York Stock Exchange ending a four year period as a public company 47 48 The delisting of its stock was designed to help the company repair its fundamental business structures and continue working to close the gap with McDonald s without having to worry about pleasing shareholders 46 In the United States domestic market the chain has fallen to third place in terms of same store sales behind Ohio based Wendy s The decline is the result of 11 consecutive quarters of same store sales decline 49 In August 2014 3G announced that it planned to acquire the Canadian restaurant and coffee shop chain Tim Hortons and merge it with Burger King with backing from Warren Buffett s Berkshire Hathaway The two chains will retain separate operations post merger with Burger King remaining in its Miami headquarters 50 A Tim Hortons representative stated that the proposed merger would allow Tim Hortons to leverage Burger King s resources for international growth The combined company will be the third largest international chain of fast food restaurants 51 52 The deal lead to a controversy over the practice of tax inversions in which a company decreases the amount of taxes it pays by moving its headquarters to a tax haven a country with lower rates but maintains the majority of their operations in their previous location As a high profile instance of tax inversion news of the merger was criticized by U S politicians who felt that the move would result in a loss of tax revenue to foreign interests and could result in further government pressure against inversions 52 53 54 55 In 2019 Burger King reported that it planned to close up to 250 low volume locations per year with closures coming into effect in 2020 56 In February 2021 Burger King began testing a customer loyalty rewards program called Royal Perks in Los Angeles Miami New York City New Jersey and Long Island New York 57 Following the 2022 Russian invasion of Ukraine a number of companies have faced growing pressure to halt operations in Russia but have not yet done so This included Burger King 58 59 60 61 62 On March 10 2022 Burger King suspended all its operations in Russia 63 64 However Burger King s local Russian partner operating 800 Burger King stores in Russia refused to close the sites in spite of the Burger King s demand to do so 65 In March 2022 Burger King suspended all its corporate support including operations marketing supply chain investments and expansion in Russia in response to the 2022 Russian invasion of Ukraine It halted its corporate support to the more than 800 fully franchised restaurant chains in Russia managed by a local master franchisee 63 64 However the International Consortium of Investigative Journalism revealed that Burger King retained its stake in the Russian franchises through an offshore joint venture with the Russian state owned VTB Bank and a Ukrainian investment firm linked to corrupt deals with Ukraine s former pro Russian leader 66 In October 2023 Tom Curtis president of Burger King U S amp Canada announced a new store design at its annual franchisee convention in Canada branded The Sizzle It would remodel existing Burger King locations with a new look inside and outside to tackle slowing business after the 2020 coronavirus pandemic The overhaul would add more kiosks dedicated pickup areas for mobile app orders food ordering platforms like Doordash Uber Eats and Grubhub and would improve drive thru service As of October 10 2023 there are already two Burger King locations in the United States with the Sizzle concept in effect one in New Jersey and the other in Las Vegas Nevada 67 Structure and operations nbsp Burger King restaurant in Bulacan PhilippinesBurger King Holdings is the parent company of Burger King also known as Burger King Corporation and abbreviated BKC and is a Delaware corporation formed on July 23 2002 68 A subsidiary it derives its income from several sources including property rental and sales through company owned restaurants 68 however a substantial portion of its revenue is dependent on franchise fees 68 During the transitional period after the acquisition of the company by 3G Capital Burger King s board of directors was co chaired by John W Chidsey formerly CEO and chairman of the company and Alex Behring managing partner of 3G Capital 69 By April 2011 the new ownership completed the restructuring of Burger King s corporate management and Chidsey tendered his resignation leaving Behring as CEO and chair 70 The company operates approximately 40 subsidiaries globally that oversee franchise operations acquisitions and financial obligations such as pensions 68 Exhibit 21 1 One example of a subsidiary is Burger King Brands Inc which is responsible for the management of Burger King s intellectual properties A wholly owned subsidiary established in 1990 71 Burger King Brands owns and manages all trademarks copyrights and domain names used by the restaurants in the United States and Canada It is also responsible for providing marketing and related services to the parent company 72 In 2011 the majority of Burger King restaurants approximately 90 were privately held franchises 73 In North America Burger King Corporation is responsible for licensing operators and administering of stores Internationally the company often pairs with other parties to operate locations or it will outright sell the operational and administrative rights to a franchisee which is given the designation of master franchise for the territory The master franchise will then be expected to sub license new stores provide training support and ensure operational standards are maintained In exchange for the oversight responsibilities the master franchise will receive administrative and advertising support from Burger King Corporation to ensure a common marketing scheme 74 75 The 3G Capital ownership group announced in April 2011 that it would begin divesting itself of many corporate owned locations with the intent to increase the number of privately held restaurants to 95 73 As of 2016 the percentage of privately owned Burger King establishments grew to 99 5 8 As the franchisor for the brand Burger King Holdings has several obligations and responsibilities the company designs and deploys corporate training systems while overseeing brand standards such as building design and appearance 40 76 77 The company also develops new products and deploys them after presenting them to its franchises for approval per a 2010 agreement between itself and the franchise ownership groups 73 Burger King has limited approval over franchise operations such as minimum hours of operation and promotional pricing 78 79 Additionally Burger King designates approved vendors and distributors while ensuring safety standards at the productions facilities of its vendors 68 Burger King was formerly headquartered in a nine story office tower by the Miami International Airport in unincorporated Miami Dade County Florida 80 Elaine Walker of the Miami Herald stated that the headquarters has a Burger King sign that drivers on State Road 836 can t miss In addition the chain planned to build a neon sign on the roof to advertise the brand to passengers landing at the airport On Monday July 8 2002 130 employees began working at the Burger King headquarters with the remainder moving in phases in August 2002 Prior to the moving to its current headquarters in 2002 Burger King had considered moving away from the Miami area to Texas Miami Dade County politicians and leaders lobbied against this and Burger King stayed 81 In August 2014 the future of the company s Miami headquarters was again in doubt as reports surfaced that Burger King was in talks about buying the Canadian restaurant chain Tim Hortons with a view to relocating its headquarters to Canada where the corporate tax rate was lower 82 83 The merger between Burger King and Tim Hortons created the fast food company now known as Restaurant Brands International Inc 84 Before 2002 the company s previous headquarters were in a southern Dade County campus located on Old Cutler Boulevard in the Cutler census designated place 85 86 The former Burger King headquarters as of 2007 houses rental offices for several companies 87 In 2016 Burger King signed a build to suit lease agreement on a new 150 000 square feet 14 000 m2 five story headquarters building to be built at 5707 Blue Lagoon Drive just down the street from its existing nine story headquarters at 5505 Blue Lagoon Drive 88 This was slightly smaller than the 200 000 square feet 19 000 m2 it was leasing in its current headquarters building at the time 88 In 2018 Burger King moved into its new headquarters at 5707 Blue Lagoon Drive after it was finished and then in 2019 Lennar moved into Burger King s old headquarters at 5505 Blue Lagoon Drive 89 FranchisesMain article Burger King franchises nbsp Burger King restaurant in Leicester Square London EnglandWhen Burger King Corporation began franchising in 1959 it used a regional model where franchisees purchased the right to open stores within a geographic region 12 117 13 64 These franchise agreements granted BKC very little oversight control of its franchisees and resulted in issues of product quality control store image and design and operational procedures 12 118 13 64 During the 1970s structural deficiencies in Burger King s franchise system became increasingly problematic for Pillsbury A major example was the relationship between Burger King and Louisiana based franchisee Chart House 13 64 Burger King s largest franchisee group at the time with over 350 locations in the United States The company s owners William and James Trotter made several moves to take over or acquire Burger King during the 1970s all of which were spurned by Pillsbury 22 After the failed attempts to acquire the company the relationship between Chart House and Burger King soured and eventually devolved into a lawsuit 22 Chart House eventually spun off its Burger King operations in the early 1980s into a holding company called DiversiFoods which in turn was acquired by Pillsbury in 1984 and absorbed into Burger King s operations 90 91 As part of the franchising reorganization segment of Operation Phoenix Donald N Smith initiated a restructuring of future franchising agreements in 1978 Under this new franchise agreement new owners were disallowed from living more than one hour from their restaurants restricting them to smaller individuals or ownership groups and preventing large multi state corporations from owning franchises Franchisees were also now prohibited from operating other chains preventing them from diverting funds away from their Burger King holdings This new policy effectively limited the size of franchisees and prevented larger franchises from challenging Burger King Corporation as Chart House had 13 64 Smith also sought to have BKC be the primary owner of new locations and rent or lease the restaurants to its franchises This policy would allow the company to take over the operations of failing stores or evict those owners who would not conform to the company guidelines and policies 22 By 1988 parent company Pillsbury had relaxed many of Smith s changes scaling back on construction of new locations which resulted in stalled growth of the brand 17 Neglect of Burger King by new owner Grand Metropolitan and its successor Diageo 30 further hurt the standing of the brand causing significant financial damage to BK franchises and straining relations between the parties 92 nbsp A Burger King franchise adapted to operate in the historic district of Oaxaca MexicoBy 2001 and after nearly 18 years of stagnant growth the state of its franchises was beginning to affect the value of the company One of the franchises most heavily affected by the lack of growth was the nearly 400 store AmeriKing Inc one of the largest Burger King franchisees 93 By 2002 the franchise owner which until this point had been struggling under a nearly US 300 million debt load and been shedding stores across the US was forced to enter Chapter 11 bankruptcy 94 The failure of AmeriKing deeply affected the value of Burger King and put negotiations between Diageo and the TPC Capital led group on hold The developments eventually forced Diageo to lower the total selling price of the chain by almost 750 million 92 After the sale newly appointed CEO Brad Blum initiated a program to help roughly 20 percent of its franchises including its four largest who were in financial distress bankruptcy or had ceased operations altogether 95 Partnering with California based Trinity Capital LLC the company established the Franchisee Financial Restructuring Initiative a program to address the financial issues facing BK s financially distressed franchisees The initiative was designed to assist franchisees in restructuring their businesses to meet financial obligations focus on restaurant operational excellence reinvest in their operations and return to profitability 96 Individual franchisees took advantage of the AmeriKing failure one of BK s regional owners Miami based Al Cabrera purchased 130 stores located primarily in the Chicago and the upper mid west region from the failed company for a price of 16 million approximately 88 percent of their original value The new company which started out as Core Value Partners and eventually became Heartland Foods also purchased 120 additional stores from distressed owners and revamped them The resulting purchases made Cabrera the largest minority franchisee of Burger King and Heartland one of the company s top franchises 97 By 2006 the company was valued at over 150 million and was sold to New York based GSO Capital Partners 98 Other purchasers included a three way group of NFL athletes Kevin Faulk Marcus Allen and Michael Strahan who collectively purchased 17 stores in the cities of Norfolk and Richmond Virginia 99 and Cincinnati based franchisee Dave Devoy who purchased 32 AmeriKing stores After investing in new decor equipment and staff retraining many of the formerly failing stores showed growth approaching 20 percent 30 As part of 3G s restructuring plan the company decided to divest itself of its corporate owned locations by re franchising them to private owners and become a 100 franchised operation by the end of 2013 The project which began in April 2012 saw the company divest corporate owned locations in Florida Canada Spain Germany and other regions 100 101 102 The move gave the company a Q3 2013 profit of US 68 2 million over the same quarter 2012 of US 6 6 million 100 At the end of its 2013 fiscal year Burger King was the second largest chain of hamburger fast food restaurants in terms of global locations 68 123 behind industry bellwether McDonald s which had 32 400 locations At the end of 2014 Burger King ranked fourth among US food chains in terms of US sales behind McDonald s Starbucks and Subway 103 Burger King now has over 12 000 stores worldwide 104 In January 2024 Restaurant Brands International the owner of the brand announced it would purchase the largest franchisee of the chain Carrols Restaurant Group for around 1 billion At the time of the announcement Carrols had 1 022 Burger King locations along with 60 Popeyes locations The goal was to remodel 600 of the restaurants then sell them back to franchisees over five to seven years The move represented a departure from the existing model of largely franchising locations 105 106 107 International operationsSee also List of countries with Burger King franchises and Hungry Jack s nbsp Burger King located in Karl Johan s Street Oslo NorwayWhile BK began its foray into locations outside of the continental United States in 1963 with a store in San Juan Puerto Rico 108 it did not have an international presence until several years later Shortly after the acquisition of the chain by Pillsbury it opened its first Canadian restaurant in Windsor Ontario in 1969 13 66 109 Other international locations followed soon after including Australia in 1971 with a restaurant in the Perth suburb of Innaloo and Europe in 1975 with a restaurant in Madrid 110 111 Beginning in 1982 BK and its franchisees began operating stores in several East Asian countries including Japan Taiwan Singapore and South Korea 22 Due to high competition all of the Japanese locations were closed in 2001 however BK reentered the Japanese market in June 2007 112 BK s Central and South American operations began in Mexico in the late 1970s and by the early 1980s in Caracas Venezuela Santiago Chile and Buenos Aires Argentina 22 While Burger King lags behind McDonald s in international locations by over 12 000 stores as of 2008 it had managed to become the largest chain in several countries including Mexico and Spain 113 nbsp Burger King located at Helsinki Central Station in Helsinki FinlandThe company divides its international operations into three segments the Middle East Europe and Africa division EMEA Asia Pacific APAC and Latin America and the Caribbean LAC 68 5 In each of these regions Burger King has established several subsidiaries to develop strategic partnerships and alliances to expand into new territories In its EMEA group Burger King s Switzerland based subsidiary Burger King Europe GmbH is responsible for the licensing and development of BK franchises in those regions 68 5 Exhibit 21 1 114 In APAC region the Singapore based BK AsiaPac Pte Ltd business unit handles franchising for East Asia the Asian subcontinent and all Oceanic territories 68 6 Exhibit 21 1 74 115 The LAC region includes Mexico Central and South America and the Caribbean Islands and has no centralized operations group 68 6 Exhibit 21 1 nbsp Burger King at the Skopje Airport North MacedoniaAustralia is the only country in which Burger King does not operate under its own name 68 6 When the company set about establishing operations down under in 1971 it found that its business name was already trademarked by a takeaway food shop in Adelaide 116 As a result Burger King provided the Australian franchisee Jack Cowin with a list of possible alternative names derived from pre existing trademarks already registered by Burger King and its then corporate parent Pillsbury that could be used to name the Australian restaurants Cowin selected the Hungry Jack brand name one of Pillsbury s US pancake mixture products and slightly changed the name to a possessive form by adding an apostrophe s forming the new name Hungry Jack s 110 117 After the expiration of the trademark in the late 1990s Burger King unsuccessfully tried to introduce the brand to the continent After losing a lawsuit filed against it by Hungry Jack s ownership the company ceded the territory to its franchisee 110 Hungry Jack s is now the only Burger King brand in Australia Cowin s company Hungry Jack s Pty Ltd is the master franchise and thus is now responsible for oversight of the operations that country with Burger King only providing administrative and advertising support to ensure a common marketing scheme for the company and its products 75 nbsp Burger King in Zhengzhou ChinaOver a 10 year period starting in 2008 Burger King predicted 80 percent of its market share would be driven by foreign expansion particularly in the Asia Pacific and Indian subcontinent regional markets 118 While the TPG led group continued BK s international expansion by announcing plans to open new franchise locations in Eastern Europe Africa and the Middle East and Brazil the company plan is focusing on the three largest markets India China and Japan 119 120 121 122 The company plans to add over 250 stores in these Asian territories as well as other places such as Macau by the end of 2012 123 Its expansion into the Indian market has the company at a competitive disadvantage with other fast food restaurants such as KFC because of the aversion of the country s large Hindu majority to beef BK hopes to use their non beef products such as their TenderCrisp and TenderGrill chicken sandwiches as well as other products like mutton sandwiches and veggie sandwiches to help them overcome this hurdle to expand in that country 118 124 3G has reported that it will continue with the plans to grow globally even ramping up the planned expansion to help increase their return on investment 21 1 It is expected that 3G Brazilian based management connections in the region may help Burger King expand in Brazil and Latin America where it has been having problems finding acceptable franchisees 21 2 125 In December 2020 Burger King India went in for an initial public offering IPO on the BSE and NSE in India The IPO was subscribed over 150 times 126 The stock opened at 112 5 per share on December 14 nearly double the IPO price of 60 and closed at 135 127 Legal casesMain articles Burger King legal issues Burger King Mattoon Illinois Burger King Alberta and Burger King Corporation v Hungry Jack s Pty Ltd nbsp The Burger King restaurant in Mattoon Illinois originally owned by the Hoots family This location was one subject of major litigation by Burger King Burger King has been involved in several legal disputes and cases as both plaintiff and defendant in the years since its founding in 1954 Depending on the ownership and executive staff at the time of these incidents the company s responses to these challenges have ranged from a conciliatory dialog with its critics and litigants to a more aggressive opposition with questionable tactics and negative consequences 128 129 130 131 The company s response to these various issues has drawn praise 132 133 as well as in some instances suggestions of political appeasement 134 A trademark dispute involving the owners of an unrelated restaurant also named Burger King in Mattoon Illinois led to a federal lawsuit As a result the larger Burger King chain was ordered not to build any franchises within a 20 mile radius of the Mattoon Burger King 135 An existing trademark held by a shop of the same name in South Australia forced the company to change its name in Australia to Hungry Jack s 136 while another state trademark in Texas forced the company to abandon its signature product the Whopper in several counties around San Antonio 137 The company was only able to enter northern Alberta in Canada in 1995 after it paid the founders of another chain named Burger King 138 Legal decisions from other suits have set contractual law precedents in regards to long arm statutes the limitations of franchise agreements and ethical business practices 139 140 Many of these decisions have helped define general business dealings that continue to shape the entire marketplace 141 142 143 Controversies and disputes have arisen with groups such as People for the Ethical Treatment of Animals PETA governmental and social agencies and unions and trade groups over various topics These situations have touched on legal and moral concepts such as animal rights corporate responsibility 144 ethics 145 and social justice 145 While the majority of the disputes did not result in lawsuits in many of the cases the situations raised legal questions dealt with legal compliance or resulted in legal remedies such as changes in contractual procedure or binding agreements between parties The resolutions to these legal matters have often altered the way the company interacts and negotiates contracts with its suppliers and franchisees or how it does business with the public 132 133 146 147 Further controversies have occurred during the company s expansion in the Middle East The opening of a Burger King location in Ma aleh Adumim an Israeli settlement in the Israeli occupied Palestinian territories led to a breach of contract dispute between Burger King and its Israeli franchise due to the hotly contested international dispute over the legality of Israeli settlements in the Palestinian territories in accordance to international law The controversy eventually erupted into a geopolitical dispute involving Muslim and Jewish groups on multiple continents over the application of and adherence to international law 148 149 150 The case eventually elicited reactions from the members of the 22 nation Arab League The Islamic countries within the League made a joint threat to the company of legal sanctions including the revocation of Burger King s business licenses within the member states territories 149 150 151 A related issue involving members of the Islamic faith over the interpretation of the Muslim version of canon law Shariah regarding the promotional artwork on a dessert package in the United Kingdom raised issues of cultural sensitivity 152 and with the former example posed a larger question about the lengths that companies must go to to ensure the smooth operation of their businesses in the communities they serve 134 On April 9 2019 Nations Restaurant News reported that Burger King filed a lawsuit on Fritz Management LLC to remove Burger King trademarks from 37 units in South Texas after unsanitary conditions were found at a restaurant in Harlingen Texas 153 In May 2019 the lawsuit was settled with the franchisee Fritz Management a subsidiary of Sun Holdings Inc keeping the trademarks on all 37 units 154 155 On November 19 2019 a lawsuit was filed by a vegan from Atlanta Georgia against Burger King for allegedly failing to clearly disclose that Impossible Whopper burgers were heated on the same grill as their beef burgers 156 The lawsuit was dismissed 157 On March 28 2022 a lawsuit was filed against Burger King alleging the fast food chain falsely advertised the Whopper to look about 35 bigger in its advertising than it is in reality 158 159 Charitable contributions and servicesBurger King has two in house national charitable organizations and programs One is the Have It Your Way Foundation a U S based non profit 501 c 3 corporation with multiple focuses on hunger alleviation disease prevention and community education through scholarship programs at colleges in the U S 160 The other charitable organization is the McLamore Foundation also a non profit 501 c 3 corporation that provides scholarships to students in the U S and its territories 161 In various regions across the United States Burger King and its franchises have aligned themselves with several charitable organizations that support research and treatment of juvenile cancer Each year these coalitions hold a fund raising drive called A Chance for Kids in which Burger King restaurants sell lottery style scratch cards for 1 Each card produces a winning prize that is usually a food or beverage product but includes rarer items such as shopping sprees or trips In the Northeast BK has affiliated itself with the Major League Baseball team the Boston Red Sox and its charitable foundation the Jimmy Fund The group runs the contest in Boston In the New York City area it operates the contest in association with the Burger King Children s Charities of Metro New York and the New York Yankees Funds raised in these areas go to support the Dana Farber Cancer Institute located in Boston 162 163 In Nebraska the company is affiliated with the Liz s Legacy Cancer Fund BK Beat Cancer for Kids program at the UNMC Eppley Cancer Center at the University of Nebraska Medical Center in Omaha 164 In the Pittsburgh region it funded the establishment of the Burger King Cancer Caring Center a support organization for the families and friends of cancer patients 165 ProductsMain articles Burger King products and List of Burger King products nbsp The Whopper sandwich Burger King s signature productWhen the predecessor of Burger King first opened in Jacksonville in 1953 its menu consisted predominantly of basic hamburgers French fries soft drinks milkshakes and desserts After being acquired by its Miami Florida franchisees and renamed to its current moniker in 1954 BK began expanding the breadth of its menu by adding the Whopper sandwich in 1957 This quarter pound 4 oz 110 g hamburger was created by Burger King s new owners James McLamore and David Edgerton as a way to differentiate BK from other burger outlets at the time 166 Since its inception the Whopper has become synonymous with Burger King and has become the focus of much of its advertising 167 The company even named its new kiosk style restaurants Whopper Bars 168 The menu component of Donald Smith s Operation Phoenix was initiated in 1978 and led to the addition of the Burger King Specialty Sandwich line in 1979 The new product line significantly expanded the breadth of the BK menu with many non hamburger sandwiches including new chicken and fish offerings The new Specialty Sandwich line was one of the first attempts to target a specific demographic in this case adults 18 34 who would be willing to spend more on a higher quality product 12 119 One of Smith s other significant contributions to the menu was the addition of a breakfast product line which until this time was not a market Burger King had entered 22 Besides the addition of the Croissan Wich in 1983 the breakfast menu remained almost identical to the McDonald s offerings until a menu revamp in 1985 22 This expansion introduced BK s AM Express product line which added new products such as French toast sticks and mini muffins 169 As the company expanded both inside and outside the US it introduced localized versions of its products that conform to regional tastes and cultural or religious beliefs International variations add ingredients such as teriyaki or beetroot and fried egg to the Whopper 170 beer in Germany Italy and Spain and halal or kosher products in the Middle East and Israel 171 172 173 To generate additional sales BK will occasionally introduce limited time offers LTOs that are versions of its core products or new products intended for either long or short term sales Items such as the Texas Double Whopper and various sandwiches made with mushrooms and Swiss cheese have been rotated in and out of its menu for several years 174 175 while products such as its 1993 Meatloaf Specialty Sandwich offering and accompanying limited table service along with special dinner platters failed to generate interest and were discontinued 176 177 nbsp A meal including small French fries a Whopper Jr a drink and packets of Heinz ketchupIn order to appeal to as many demographic groups as possible and better compete with its competitor Wendy s Burger King added a multi tiered value menu in 1993 with items priced at 99 US 1 99 and 2 99 22 The additions part of then CEO James Adamson s back to basics program called Operation Phoenix were an attempt to add not only a value menu but also a line of value meals 178 The tiered menu was replaced with a more standard value menu in 1998 while the value meals were separated into their own menu segment 179 This value menu featured seven products Whopper Jr five piece Chicken Tenders a bacon cheeseburger medium sized French fries medium soft drink medium onion rings and a small milkshake In 2002 and 2006 BK revamped its value menu adding and removing several different products such as chili and its Rodeo Cheeseburger 180 Many of these items have since been discontinued modified or relegated to a regional menu option 181 To better appeal to a more adult palate and demographic BK introduced several new products to its menu in 2003 including several new or revamped chicken products a new salad line and its BK Joe brand of coffee Some of the new products including their Enormous Omelet Sandwich line and the BK Stacker line brought negative attention due to the large portion size and amounts of unhealthy fats and trans fats 182 183 184 Many of these products featured higher quality ingredients like whole chicken breast Angus beef and natural cheeses such as cheddar and pepper jack 185 Again not all these products such as the BK Baguette line have met sales expectations 36 With the purchase of the company in 2010 3G began a program to restructure its menu designed to move away from the male oriented menu that had dominated under the previous ownership The first major item to be introduced was a reformulation of its BK Chicken Tenders product in March 2011 186 Over the next few months approximately 20 new products were developed while others were reformulated including its Chef s Choice Burger 187 Eventually pruned down to 10 items Burger King began deploying the items in the United States throughout 2011 2012 with the official roll out beginning April 2012 The changes included new soft serve products smoothies frappes and chicken strips The Whopper was the most prominently reformulated product in this round of introductions with a new type of cheese and packaging 49 At the end of 2015 Burger King s parent company Restaurant Brands International announced that none of its subsidiaries would use chicken that had been fed antibiotics that are critically important to human health that announcement referred only to a small class of antibiotics for which there is only one drug that kill a kind of bacteria and the announcement was described as a small step by advocates for stopping all antibiotic use in livestock 188 In 2019 Burger King released an Impossible Whopper burger a vegetarian burger using a plant based patty from Impossible Foods 189 In February 2020 Burger King announced that it would remove artificial preservatives colors and flavors from the Whopper by the end of 2020 190 In July 2020 BK announced it would begin selling a Whopper patty made from cows on a low methane diet 191 In late 2021 and early 2022 the company announced it would cut back on value items and altered product configuration because of inflationary pressures and to speed up drive thru lanes 192 193 194 195 196 After successfully testing vegan products at meat free temporary restaurants in Leicester Square and Bristol Burger King UK announced that in 2023 it would offer a Vegan Royale Bakon King made with vegan bacon vegan cheese and a vegan burger made by The Vegetarian Butcher 197 Equipment nbsp Food being prepared in a Burger King kitchen in ItalyLike its menu the equipment the company cooks its hamburgers with has also evolved as the company expanded The burgers have always been broiled mechanically the original unit called an Insta Broiler was one of two pieces of equipment the founders of Insta Burger King purchased before opening their new restaurant 11 27 166 The Insta Broiler worked by cooking 12 burger patties in a wire basket allowing the patties to be cooked from both sides simultaneously 11 27 When McLamore and Edgerton took over the company besides dropping the Insta prefix they switched to an improved unit called a Flame Broiler Designed by the two and featuring stationary burners that cooked the meat on a moving chain the unit broke down less often while maintaining a similar cooking rate 166 The company would stay with that format for the next 40 years until Burger King began developing a variable speed broiler that could handle multiple items with different cooking rates and times 198 199 200 These new units began testing in 1999 and eventually evolved into the two models the company deployed system wide in 2008 2009 Accompanying these new broilers was new food holding equipment accompanied with a computer based product monitoring system for its cooked products 201 The monitoring system allows for more concise tracking of product quality while giving the company and its franchisees a method to streamline costs by more precisely projecting sales and product usage 202 AdvertisingMain articles Burger King advertising and list of Burger King marketing campaigns nbsp The Burger King crown worn by Nick Van EedeSince its founding in 1954 Burger King has employed varied advertising programs both successful and unsuccessful During the 1970s output included its Hold the pickles hold the lettuce jingle the inspiration for its current mascot the Burger King and several well known and parodied slogans such as Have it your way and It takes two hands to handle a Whopper 203 204 205 Burger King introduced the first attack ad in the fast food industry with a pre teen Sarah Michelle Gellar in 1981 The television spot which claimed BK burgers were larger and better tasting than competitor McDonald s 13 66 so enraged executives at McDonald s parent company that they sued all parties involved 206 Starting in the early 1980s and running through approximately 2001 BK engaged a series of ad agencies that produced many unsuccessful slogans and programs including its biggest advertising flop Where s Herb 207 208 Burger King was a pioneer in the advertising practice known as the product tie in with a successful partnership with George Lucas Lucasfilm Ltd to promote the 1977 film Star Wars in which BK sold a set of beverage glasses featuring the main characters from the movie 209 210 This promotion was one of the first in the fast food industry and set the pattern that continues to the present BK s early success in the field was overshadowed by a 1982 deal between McDonald s and The Walt Disney Company to promote Disney s animated films beginning in the mid 1980s and running through the early 1990s In 1994 Disney switched from McDonald s to Burger King signing a 10 movie promotional contract which would include such top 10 films as Aladdin 1992 Beauty and the Beast 1991 The Lion King 1994 and Toy Story 1995 22 A partnership in association with the Pokemon franchise at the height of its popularity in 1999 was tremendously successful for the company with many locations rapidly selling out of the toys and the replacements 211 In December 1999 two hazardous incidents involving the Pokeball toy one of which caused the death of a 13 month old child led to the toy being recalled Shortly after the acquisition of Burger King by TPG Capital L P in 2002 its new CEO Brad Blum set about turning around the fortunes of the company by initiating an overhaul of its flailing advertising programs One of the first moves by the company was to reinstate its famous Have it your way slogan as the corporate motto BK handed the effort off to its new advertising agency Miami based Crispin Porter Bogusky abbreviated as CP B CP B was known for having a hip subversive tack when creating campaigns for its clients exactly what BK was looking for 36 37 One of CP B strategies was to revive the Burger King character used during BK s 1970s 1980s Burger King Kingdom children s advertising campaign as a caricatured variation now simply called the King 212 213 The farcical nature of the Burger King centered advertisements inspired an internet meme where the King is edited into unusual situations that are either comical or menacing many times followed with the phrase Where is your God now Additionally CP B created a series of new characters like the Subservient Chicken and the faux nu metal band Coq Roq featured in a series of viral web based advertisements on sites such as MySpace and various BK corporate pages to complement various television and print promotional campaigns 214 215 216 One of the more successful promotions that CP B devised was the creation of a series of three advergames for the Xbox 360 217 218 Created by UK based Blitz Games and featuring company celebrity spokesman Brooke Burke the games sold more than 3 2 million copies placing them as one of the top selling games along with another Xbox 360 hit Gears of War 218 219 These ad campaigns coupled with other new promotions and a series of new product introductions drew positive and negative attention to BK and helped TPG and its partners realize about US 367 million in dividends 220 221 With the late 2000s recession hitting the 18 35 demographic targeted by the CP B created ads particularly hard the company saw its market share decline and the company move into the red After the completion of the sale of the company in late 2010 the new ownership group terminated Burger King s seven year relationship with CP B and hired rival firm McGarryBowen to create a new campaign with an expanded market reach 222 As part of the new campaign McGarryBowen terminated the use of The Burger King in the company s advertising program in favor of a new program that focused on the food and ingredients in its new advertising campaigns 223 In recent years Burger King has turned to trolling fast food rival McDonald s with their advertising strategy The company s tactics have included LOLA MullenLowe s Scary Clown Night which offered a free Whopper to anyone dressed as a clown McDonald s mascot on Halloween FCB New York s Whopper Detour initiative which encouraged mobile app users to go to a nearby McDonald s in order to unlock a 1 center Whopper and Ingo s The Not Big Macs menu which poked fun at McDonald s recent loss of the Big Mac trademark in the EU 224 In February 2019 the company launched an advertising campaign called Eat Like Andy The television spot which premiered during the Super Bowl LIII features archival documentary film footage from 66 Scenes from America by Jorgen Leth of the pop artist Andy Warhol 1928 1987 unwrapping and eating a Whopper The footage was approved for use by the fast food giant courtesy of the Andy Warhol Foundation Meanwhile prior to the game the mass market hamburger chain made available to viewers who ordered it in advance via DoorDash an Andy Warhol Mystery Box which contains among other items a plastic bottle of ketchup and a platinum wig so one can Eat Like Andy 225 226 Burger King Twitter BurgerKingUK Women belong in the kitchen March 8 2021 1 Burger King Twitter BurgerKingUK If they want to of course Yet only 20 of chefs are women We re on a mission to change the gender ratio in the restaurant industry by empowering female employees with the opportunity to pursue a culinary career IWD March 8 2021 2 Burger King Twitter BurgerKingUK We are proud to be launching a new scholarship programme which will help female Burger King employees pursue their culinary dreams March 8 2021 227 On March 8 2021 Burger King was criticized for their International Women s Day marketing campaign after a tweet from Burger King UK stated Women belong in the kitchen 228 The tweets were labeled as sexist by thousands of Twitter users 229 and dozens of news publications 230 231 232 Burger King UK followed up stating We re on a mission to change the gender ratio in the restaurant industry 229 However critics say the damage has already been done The initial tweet received high amounts of recognition and viewer interaction while the replies received a fraction of the coverage meaning only a few people are aware of the clarifications made by Burger King 233 After severe backlash Burger King deleted the tweet 12 hours later and posted an apology stating We got our initial tweet wrong and we re sorry 234 In late 2022 Burger King released the Have it Your Way commercials going viral on social media such as TikTok after the 2022 23 NFL playoffs because of its large amount of repetition and catchiness The ads gained media attention and made their way onto music streaming services such as Spotify in February 2023 235 See alsoDrive through Hungry Jack s the Australian subsidiary for Burger 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antibiotic policy less than meets the eye Los Angeles Times Archived from the original on February 8 2020 Retrieved April 16 2020 Wiener Bronner Danielle April 29 2019 Burger King plans to roll out Impossible Whopper across the United States CNN Digital Archived from the original on April 29 2019 Retrieved April 29 2019 Lucas Amelia February 19 2020 Burger King is cutting artificial preservatives and it created a gross new ad to show it off CNBC Archived from the original on November 4 2020 Retrieved February 19 2020 Lucas Ameilia July 14 2020 Burger King is selling a burger made from cows on low methane diet CNBC Archived from the original on July 14 2020 Retrieved July 14 2020 Haddon Heather January 30 2022 Burger King Domino s Pull Back on Value Menus as Costs Rise The Wall Street Journal ISSN 0099 9660 Retrieved April 11 2022 Kline Daniel March 2022 Burger King Makes Two Huge Menu Changes You Won t Like Them TheStreet Retrieved April 11 2022 Dean Grace Burger King is removing items from its menu and offering fewer discounts Business Insider Retrieved April 11 2022 Castrodale Jelisa February 25 2022 Burger King Locations Are Cutting Their 10 Piece Chicken Nuggets Down to 8 Food amp Wine Retrieved April 11 2022 Lucas Amelia December 1 2021 Burger King will cut menu items to speed up its drive thru lanes as part of U S turnaround CNBC Retrieved April 11 2022 Smith Steven December 27 2022 Burger King is bringing back the Bacon King and this time there s a vegan one WalesOnline Retrieved December 28 2022 Hoyland Christa April 7 2009 Burger King menu to get creative QSRWeb com Archived from the original on July 15 2011 Retrieved June 6 2009 Burger King Goes to the Heartland of the USA To Test The Next Big Thing The Great American Burger PRNewswire Press release Burger King Corporation September 28 1999 Archived from the original on February 19 2006 Retrieved October 12 2007 Cebrzynski Gregg April 26 1999 Burger King Plans systemwide overhaul in operations image Nation s Restaurant News bNet com Archived from the original on November 15 2004 Retrieved January 21 2011 Reckert John January 2 2001 A Whopper of a Wireless Solution Wireless Business and Technologies Archived from the original on July 16 2011 Retrieved October 13 2009 Boyle Matthew October 12 2007 Burger King reinvents flame broiling Fortune CNN Archived from the original on December 12 2018 Retrieved October 13 2009 Gabay J Jonathan October 2006 Gabay s Copywriters Compendium Butterworth Heinemann p 582 ISBN 978 0 7506 8320 3 Archived from the original on January 21 2021 Retrieved December 4 2008 Marketing and Advertising History Burger King Corporation March 12 2007 Archived from the original on May 25 2007 Retrieved October 24 2007 Hyken Shep May 26 2006 Customer service and more BlogSpot Archived from the original on July 18 2007 Retrieved September 26 2007 Salemi Vicki April 12 2009 Buffy s Having A Baby SheKnows com AtomicOnline Archived from the original on November 1 2010 Retrieved November 3 2010 Herb Comes Out of Hiding Time February 3 1986 Archived from the original on January 28 2013 Retrieved October 24 2004 Schoifet Mark January 1 1986 Herb falls flat but Wendy s breaks another winner Nation s Restaurant News Archived from the original on July 12 2012 Retrieved October 24 2007 Doing Star Wars the Burger King Way Starwars com Lucasfilm May 20 2005 Archived from the original on July 3 2007 Retrieved November 19 2007 Ken May 10 2005 Star Wars returns to Burger King FastFoodFacts info Archived from the original on November 13 2010 Retrieved November 19 2007 Kandel Jason November 12 1999 Kids swarm Burger King as Pokemon mania strikes Los Angeles Daily News Archived from the original on May 20 2011 Retrieved December 2 2007 Stevenson Seth October 1 2004 Burger King is resurrecting a dubious icon Why Slate com Archived from the original on November 25 2011 Retrieved October 9 2007 Big Burger Business McDonald s and Burger King Heavyweights Season 2 Episode 3 April 21 2008 Food Network Archived from the original on September 19 2012 Burger King in MySpace campaign Mad co uk May 13 2006 Archived from the original Fee required on January 15 2008 Retrieved August 27 2007 Delegge Peter July 31 2005 Burger King Goes Tasteless MarketingToday com Archived from the original on August 7 2007 Retrieved August 25 2007 Tippins Robyn August 3 2006 Burger King s Table Guests AllBusiness com Archived from the original on October 16 2015 Retrieved August 25 2007 Edery David Mollick Ethan October 2008 3 Changing the game how video games are transforming the future of business FT Press pp 69 72 ISBN 978 0 13 235781 4 Retrieved January 20 2011 a b Wilson Douglas March 11 2007 GDC 07 Burger King gets its game on GameSpot Archived from the original on June 12 2018 Retrieved January 20 2011 Coola December 21 2006 More than 2 Million Games Sold Nationwide XBox365 com Archived from the original on January 1 2007 Retrieved October 27 2007 CP B website Burger King section Crispin Porter Bogusky Archived from the original on October 27 2007 Retrieved October 24 2007 Ochman B L April 12 2004 Burger King Has Fun With Subservient Chicken Viral Campaign Archived from the original on December 31 2006 Retrieved August 25 2007 Parekh Rupal Morrison Maureen March 18 2011 Burger King and Crispin Split After Seven Year Run Advertising Age Archived from the original on March 21 2011 Retrieved March 18 2011 Morrison Maureen June 1 2011 McGarryBowen Set to Grab Burger King Account Ad Age Archived from the original on February 28 2013 Retrieved September 29 2011 Burger King Trolls McDonald s Yet Again With an Entire Menu Mocking the Big Mac www adweek com January 31 2019 Archived from the original on January 31 2019 Retrieved February 1 2019 Why Burger King showed Andy Warhol eating a burger in its Super Bowl commercial Crain s New York Business February 5 2019 Archived from the original on February 9 2019 Retrieved February 8 2019 Anwar Mehak February 4 2019 This Year s Burger King Super Bowl Commercial Features This Legendary Artist Elite Daily Archived from the original on February 7 2019 Retrieved February 8 2019 Burger King BurgerKingUK March 8 2021 We are proud to be launching a new scholarship programme which will help female Burger King employees pursue their culinary dreams Tweet via Twitter Denham Hannah Burger King UK sparks uproar with Women belong in the kitchen tweet on International Women s Day The Washington Post ISSN 0190 8286 Archived from the original on April 20 2021 Retrieved March 8 2021 a b Rodger James March 8 2021 Burger King under fire over shameful International Women s Day tweet BirminghamLive Archived from the original on March 8 2021 Retrieved March 8 2021 Burger King s UK tweets Women belong in the kitchen on International Women s Day KSN TV March 8 2021 Archived from the original on December 7 2021 Retrieved March 8 2021 Molina Brett Burger King UK under fire for tweeting Women belong in the kitchen on International Women s Day USA Today Archived from the original on March 9 2021 Retrieved March 8 2021 Lopez Alvar Nicole March 8 2021 Burger King UK tweets women belong in the kitchen on International Women s Day WPLG Archived from the original on March 8 2021 Retrieved March 8 2021 Burger King U K gets pushback for Women belong in the kitchen post TODAY com March 8 2021 Archived from the original on March 8 2021 Retrieved March 8 2021 BurgerKingUK March 8 2021 We hear you Tweet Retrieved March 8 2021 via Twitter Marcin Tim January 25 2023 The Burger King Whopper jingle is going viral because sports fans can t escape it Mashable Retrieved February 17 2023 External links nbsp Wikimedia Commons has media related to Burger King nbsp Wikivoyage has a travel guide for Fast food in North America Official website Official news amp press Burger King McLamore Foundation Archived June 12 2018 at the Wayback Machine Liz s Legacy Cancer Fund BK Beat Cancer for Kids Business data for Burger King GoogleSEC filingsYahoo Burger King at the Wayback Machine archived March 24 2002 Burger King Archived from the original on April 19 2001 Retrieved December 9 2013 Burger King Archived from the original on October 12 1997 Retrieved May 18 2005 Burger King Archived from the original on December 26 1996 Retrieved November 10 2016 25 46 57 99 N 80 17 14 56 W 25 7827750 N 80 2873778 W 25 7827750 80 2873778 Portals nbsp Food nbsp Florida nbsp United States nbsp 1950s Retrieved from https en wikipedia org w index php title Burger King amp oldid 1196153146, wikipedia, wiki, book, books, library,

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