Will $400 million be enough for Burger King to “Reclaim the Flame?”
After a series of disappointing sales quarters, the chain hopes to revamp its image to attract the next generation of customers. $150 million of the budget will go to digital marketing and advertising, while the remaining $200 million will be used to upgrade approximately 800 restaurants like updated equipment and technology, design renovations, and more.
“Ultimately, the success of this ‘Reclaim the Flame’ plan comes down to execution at the restaurant level, and we are so fortunate to have franchisees who love this brand and are working closely with us to focus on the right priorities,” said Tom Curtis, Burger King president of North America. “I believe in this team, this plan and a bright future as we evolve and enhance our guest experience and drive profitable growth for the business.”
Burger King’s 2022 second quarter sales were not ideal – an increase of 0.4% – compared to McDonald’s and Wendy’s during the same quarter – 3.7% and 2.3% respectively.
“I’m very proud and thankful that our franchisees have stepped up once again to invest in our performance together, reflecting the genuine partnership and mutual respect we have built between the franchisor and franchisees,” Curtis said.
To maintain the relationship with franchisees, and to hopefully gain more, Burger King is investing in more franchisee incentives like offering higher royalty rates.
