If Burger King was flying under peoples' radars for a while, that has certainly changed.
A private-equity firm named 3G Capital is buying out the burger chain for $3.3 billion. The company is launching a more upscale concept called the Whopper Bar that sells more of a high-end product, offers pizza-sized burgers and will sell alcoholic beverages. Finally, management just announced it will overhaul and expand its breakfast menu.
But will any of these developments be enough for Burger King to take on McDonald's, its bigger and badder rival?
A recent Business Week article seems makes it seem unlikely. For one thing, McDonald's dwarfs Burger King location wise, with 32,466 compared to 12,174. Plus, McDonald's markets to a broader audience than Burger King, which mostly targets young men in its advertisements.
The article says that observers think the new owners will try to cut costs and expand internationally. But one of the criticisms from observers and those that have watched the chain is that the company hasn't spent enough money on revamping the menu and updating the physical restaurants.
Do you think the new ownership and initiatives will help Burger King turn around, or will the consumer always think of McDonald's as the go-to burger option?
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
