Sep
10

5 Reasons Why Burger King Is Losing

burger king king 5 Reasons Why Burger King Is Losing

The Best Ad Campaign Ever

Money.CNN has an article titled “What Went Wrong At Burger King?” in response to the recent acquisition of Burger King by an investment firm.  The article is well written and gives a great “macro” perspective, but we wanted to give a more “micro” perspective of the problems in the Burger Kingdom.

I find the acquisition interesting because, in my opinion, Burger King has one of the better fast-food burgers available around us, which begs the question: what went wrong?

Don’t get me wrong, I much prefer to fire up the grill and partake in my own grilling glory, but when I’m on the go, I prefer a Burger King burger over a McDonald’s burger.

This isn’t to say that I didn’t have my complaints about Burger King, in fact, I am a McDonald’s shareholder.  Yes, my financial instincts betray my taste buds, but here is why I love BK, but believe in McD.  We will critique Burger King using the Wealth Artisan Fast-food 5 S’s©:

  • Sanitation
  • Setup
  • Speed
  • Standards
  • Service

#5 Sanitation.

Sanitation is a pillar of strength in the food and restaurant arena.  It is a simple basic that can close a business down.

Burger King wasn’t filthy (in many of my experiences) but on a long road trip, my wife and I always went to a McDonald’s first, after we had consistently bad experiences at Burger King.

I also think that their indoor color choices lend them to looking dirty, when they very well may be spick-and-span.

Either way, my wife and I have this thought process on road trips:

  • McDonald’s is clean
  • Burger King isn’t
  • Exit when we see the golden arches
  • Keep driving if it is only a BK exit, even though it is more delicious icon sad 5 Reasons Why Burger King Is Losing

These dangerous thoughts took business away from the more tasty Burger King and handed it to McDonald’s.  Even if bathroom cleanliness isn’t indicative of the cleanliness of the rest of the restaurant, it makes peoples’ mind’s wander.

#4 Setup.

I can only really speak for us locally, but out of all of the fast-food restaurants around us, Burger King has the absolute worst locations and drive-thru setups.  They were poorly picked & laid out, and you can tell that the drive-thru and parking was fitted to the land chosen, more so than the land chosen for a good setup.

McDonald’s around us is accessible to both directions of traffic (no u-turns needed), their entrances and exits are well thought out, and entrances don’t get backed up onto the highway because the drive-thru traffic is blocking the entrance.

#3 Speed.

Burger king is the only fast-food place that took me over 20 minutes to get my food when there was only one car in front of me.  Maybe it was a bad order, right?  Additionally, it is the only fast-food restaurant where I routinely have to wait over 10 minutes, and it isn’t because of a long line.  I know this is a problem with Burger King because no other fast-food restaurants around us exhibit this behavior.

#2 Standards.

This section can also be known as consistency.  McDonald’s claim to fame is consistency.  I’ve read numerous articles where the only focus being written about is McDonald’s consistency and what they do to strive for it.  When multiple articles, and even full books can be written about the same topic and never be redundant, then you know you’re doing something right.

Between inconsistent charges for the same kinds of food, different charges for the same additions, and all out different toppings between locations, it’s hard to find any consistency at Burger King.  If I order a burger, I have to specify all of the toppings that come on it or else I’ll get something that shouldn’t have ever been present, or I’ll miss something as basic as a tomato.

#1 Service.

All of the above complaints can be rendered down to one problem: level of service.  Burger King is the only fast-food restaurant where I consistently get unfriendly, apathetic, slow service.  Don’t get me wrong, I’m not trying to ride a high horse here because I’ve done my time in the food services industry.

I cleaned toilets when I was a kid, and I dealt with the angry customers, but this is different.  I’m not sure if it is the hiring policies, or the work environment, but there is certainly something wrong with many of the employees that I’ve run into.

I have worked many years in customer service, so I’m always polite, even if I don’t get it back.  I’m the kind of person that thanks an employee for working on a holiday.  Again, none of the other restaurant’s have this problem consistently.

Have I had a mean-spirited kid waiting for his shift to end at McDonald’s?  You bet your bottom dollar, but I’ve never run into such consistently poor service.  I’m including the below image for fun, but it’s something worth thinking about.  The below image shows some of the more commonly searched for things when you begin typing a phrase into Google.

 

burger king drug test 5 Reasons Why Burger King Is Losing

Could This Be Partly To Blame For Lackluster Service (please note that this is a real image, but intended as a joke.)

pixel 5 Reasons Why Burger King Is Losing
  • http://www.squirrelers.com Squirrelers

    Burger King, in my opinion, has not worked to improve the customer experience. Mc Donalds just seems to have a much more well oiled marketing machine, while Burger King has been slow to evolve. They haven’t understood and acted upon what customers are looking for, it would seem.

    Coffee drinks, smoothies, salads, restaurant makeovers are examples of how McDonalds has outmaneuvered BK. Just ask a kid where he or she would want to go? There’s your future consumer, and where I suspect BK will lose most

    • http://wealthartisan.com wealthartisan

      They’ve spent a lot of time and energy trying to get the young male market, but the problem is, like you stated, by the time a guy hits 23, he’s already a customer for life of McDonald’s. It’s tough to break childhood memories and habits! Thanks for the insight!

      Thanks,
      Timothy

  • http://inthetrenches2009.blogspot.com Carol@inthetrenches

    I know it sounds silly but I absolutely HATE their commercials. Something about that king guy just makes me angry. Same with Jack. He is such a jerk.

    Can’t explain it but it’s a negative emotional response to the commercials. Most fast food establishments are in groups so a person makes a snap decision when pulling in the driveway.

    I do love the BK onion rings! And, Jack in the Box has great food. But, in a snap moment I usually head into McDonalds.

    • http://wealthartisan.com wealthartisan

      Yeah, the King is either a “Love Him” or “Hate Him” response. I have to admit, at first I found him to be rather creepy. I have to agree, Jack in the Box has some pretty good food, but I definitely don’t like jack either!

      Thanks,
      Timothy

  • http://blog.findthebestcarprice.com Car Negotiation Coach

    love their ad campaigns, but gonna have to say McDonald’s fries are better…..and you’re right on the money with the other 5 points.

    speakin’ of McDonald’s check out Chipotle (CMG). Not only are they delicious, but as a McyD’s spin-off, they meet all of the criteria you mentioned above.

    their stock is at an all time high, but I still think they are a great play with plenty of growth….. that is, if you want stock advice from someone who has had consistenly bad luck with the market over the past 20 years :)

    • http://wealthartisan.com wealthartisan

      Hey Coach,

      Thanks for the tips. Don’t worry, now that you’ve told someone else to buy, it’ll somehow work out well for me and badly for you :-p. Lol, I’m kidding. I’ve been fortunate with my picks. My worst pick so far has been Raytheon which is weighing down the portfolio but my coke and 3m have it in check. Raytheon will make a comeback eventually, I hope :) .

      McDonald’s is a really great company and I’m weighting for their stock to take a breather before I get in some more. Right now it’s testing/setting new highs. I know, my portfolio sounds boring with all of these blue chips, but it’s been as solid as a rock throughout the mortgage meltdown and the recession/depression.

      You’re definitely right about the fries, that is a huge competitive advantage, and while their ad campaigns are cheesy, they help reinforce the brand. I’m going to add chipotle to my watchlist so I remember to do some research. Thanks for the suggestion. Have a great weekend!

      Thanks,
      Timothy

  • http://blog.findthebestcarprice.com Car Negotiation Coach

    Timothy, I’m with ya, sometimes the tried and true blue chips are the way to go. I’m doing the same watch and wait before getting more McDonalds, but still love ‘em.

    And I tell all my friends, if Chipotle has a drop, pick some up. There’s a reason there are always lines wrapped around the block to buy burritos. They have the same 10 ingredients for everything they make (saving costs) and military-style cleanliness and precision. Even when the economy tanks, their combo of healthy and cheap food is a good alternative to paying for an expensive restaurant.

    Until I see one on every block in America (like McDonalds), I’m going to keep buying because there is room for expansion. And I think I add to their bottom line with all the burritos I eat as well!

    • http://wealthartisan.com wealthartisan

      Chipotle has just started coming around to our area so they are definitely expanding. I’ve got them on my watch list, so thanks for the tip. If they can replicate McDonald’s processes even just a fraction, then they’ll be knocking down the doors of a lot of the Mexican fast food chains. It should be interesting to watch. Thanks for the tip again! Also, good call on the expansion idea. Until the market is sufficiently saturated, they have plenty of growth room.

      Thanks,
      Timothy

  • http://www.savegreengoinggreen.net Save Green Going Green

    I was in middle management for a BK franchisee in another city for 7 years and thoroughly enjoyed the experience, but the key word is Franchisee. We owned 110 restaurants and regularly seemed to have our stuff together moreso than corporate. The corporate heirarchy seemed to always come to our top management for opinions or ideas as to the direction of various facets of the business, but amazingly most of the time did the opposite or did nothing. When I worked for them they were, and still are, a very strong franchise for BK, so I hope BK can get their collective stuff together so they don’t take down a lot of good people that have poured years into their brand.

    • http://wealthartisan.com wealthartisan

      Hi SGGG,

      I agree with you. BK corporate has been very hard on their franchisees. The most recent problem that comes to mind is forcing them to sell double cheeseburgers below cost, OUCH! I always feel bad for franchisees because they tend to pour their whole hearts into a brand, and when corporate doesn’t care as much, bad things happen and good people get hurt.

      I can only hope that the new owners can bring the brand around. I’d hate to see BK go away.

      Thanks,
      Timothy

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