Hamburger Wars: Burger King vs. McDonalds Things have to change - PowerPoint PPT Presentation

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Hamburger Wars: Burger King vs. McDonalds Things have to change

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Hamburger Wars: Burger King. vs. McDonald's. Things have to change... Jay Burton ... Stringent controls placed on Franchises. Franchise 2000 belated attempt ... – PowerPoint PPT presentation

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Title: Hamburger Wars: Burger King vs. McDonalds Things have to change


1
Hamburger WarsBurger King vs.McDonaldsThin
gs have to change
Jay Burton
2
Franchiser-Franchisee Relations
  • Stringent controls placed on Franchises.
  • Franchise 2000 belated attempt to regain
    control.
  • Harsh enforcement caused a police-state climate.

  • A Kind McDonalds turns mean.

3
Franchiser-Franchisee Relations
  • Cannibalizaion of previous store sales by newly
    opened stores.
  • Intangibles include lowered morale, cooperation
    and festering resentments.
  • These factors ate away at what had previously
    been a great relationship between McDonalds and
    its franchise owners.

4
Competitors Match Strategies
  • Core Competancies becoming well known and
    practiced.
  • Low prices and ability to satisfy customers.
  • Reputation for quality cleanliness diminishes.
  • Fast food at McDonalds a.k.a Slow food.

5
Recent Situation _at_ McDs
  • Sagging sales
  • Over-Expansion Saturation problems
  • Menu and Marketing Mistakes
  • Quality Control Lapses
  • Franchisee Discontent

6
1995 Survey Comes Up Lacking
  • Low Marks received on
  • Food Quality
  • Value
  • Service
  • Cleanliness

7
Major Changes Ahead
  • A need for a refocusing on the essentials
  • Quality
  • Value
  • Service
  • Cleanliness

8
Major Changes Ahead
  • There is a need for improved relationships
    between Corporate and Franchisee operators
  • In 1998 61.3 of all stores were operated by
    franchisees.
  • There is a heavy dependence upon franchisees for
    sustained sales in an already over saturated U.S.
    market.

9
Major Changes Ahead
  • Continued Growth
  • They have no choice in todays fast paced growth
    demanding society of investors but to grow or
    suffer the consequences.
  • Moving away from original strategy by staying
    only in hamburgers.
  • Move into food-related diversification
    channels
  • Donatos Pizza
  • Chipotle Mexican Grill
  • Aroma stylish coffee-and-sandwich bar
  • Continued International growth need.

10
Hamburger WarsBurger King vs.McDonaldsThin
gs have to change
Jay Burton
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