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Burger King’s 20/20 Remodel vs. McCaf é. By Bailey McEuen Susan Kjos Robin Knudtson. Trends. McDonald achieved the First Mover Advantage More Families dining at home Fast Food Kitchens to Casual Dining Going Green Generation Y. Burger Kings 20/20 Design.
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Burger King’s 20/20 Remodel vs. McCafé By Bailey McEuen Susan Kjos Robin Knudtson
Trends • McDonald achieved the First Mover Advantage • More Families dining at home • Fast Food Kitchens to Casual Dining • Going Green • Generation Y
Burger Kings 20/20 Design • Contemporary and industrial design • Finishes that resemble brick and concrete • Urban masculine design • LCD menu screens and rotating flame chandeliers • New design give guests more valuable restraint experience through …. • Offers dining options • 60 different locations worldwide and 75 more to be open by end of next year • Cost franchisees $300,000-$600,000 to remodel
The New Whopper Bar • Create whole new experience to create the best service experience. • -Introducing “Whopperistas” • -Customize burgers with 22 different toppings. • -”Bars Favorite Lists” • Making locations more accessible for • -implementation into new markets through creating their stand alone locations.
McDonalds Mission • History: A restaurant originally known for…. competitive advantages includes… • Started investing intensely in advertising and revamping their image. • McCafé designed to offer customers affordable luxury. • Increase customer satisfaction through: -Wifi -Upscale Tables and Chairs -orders served on signature dishes.
Old Competitors include… New Competitors include…
Positives: Remodeled Burger Kings: Increase in profits of 12-15% Completely rebuilt branches: Increase of up to 30% Whopper bar emphasize their “Have it your way” moto. Larger span of new customers $1 Billion in revenues on McCafe alone over a year Positives and Negatives to redesign • Negatives: • Business mostly through drive through will not be affected by remodel. • High costs in remodel creates long term debt for franchisee.
Rivals among competitors • Burger King’s effort to ENHANCE the experience.
McDonald’s main strategy is to use franchises to enter into markets. -25, 465 operated by Franchisees -6,502 operated by the company -In 118 countries McDonalds Gross Profit (March 31, 2009) $1.8 Billion (June 30, 2009) $2.1 Billion Burger King also uses the same strategy to enter into markets. -10,496 operated by franchisees -1,429 operated by the company -In 73 Countries Burger King Gross Profit (March 31, 2009) $203 million (June 30, 2009) $167.6 million
Sources • (2007, May 07). Papascott background on Mccafé. Retrieved from http://www.papascott.de/archives/2007/05/07/ background-on-mccafe/ • (n.d.). McDonald’s Corporation. Retrieved from http://www.hoovers.com/mcdonald's/--ID__10974--/free-co-competitors.xhtml • Yahoo Finance, "MCD Yahoo Finance". Yahoo. Oct. 22, 2009 <http://finance.yahoo.com/q?s=MCD>. • Yahoo Finance, "BKC Yahoo Finance". Yahoo. Oct. 22, 2009 <http://finance.yahoo.com/q?s=BKC>. • King, Burger. "Burger King Corp.'s Bold New Global Restaurant Design Takes Flight At Amsterdam's Schiphol Airport". Burger King. Oct. 22, 2009 <http://www.bk.com/en/us/company-info/press/press-release1015.html>. • Jerry. "Environmentally Friendly Cars". Green Cars. Oct. 22, 2009 <http://environmentallyfriendlycars.org/>.