BK DISCOUNTS WHOPPER, SHUTTERS LOYALTY PROGRAM
Burger King Corp. will sell Whoppers for 99 cents next month to maintain market share and meet performance criteria for its pending sale to private investors, including chairman John Dasburg. At least 70 percent of franchisees approved the plan last week, although some franchisees balked at discounting the flagship Whopper. Miami-based BK is adamant about maintaining market share (18%, compared to McDonald’s Corp.’s 43% share of U.S. hamburger sales) to keep its buyer, Texas Pacific Group, from cutting the $2.26 billion price agreed on in July, reports “The Wall Street Journal.”
At the same time, Burger King folded its BK Rewards online loyalty program after a three-market test. Original plans called for BK to roll out BK Rewards nationally this year, but “we’re in the middle of a price war and our focus is at the front of the counter,” says BK spokesperson Kim Miller. BK Rewards let consumers collect points on French fry boxes, then use points to bid on auction items from magazine subscriptions to cruises (April PROMO). Current users-numbering in the tens of thousands, per Miller-have six weeks to use up their points. BK will evaluate the program’s relevance to its overall marketing strategy, says Miller.
Separately, BK tapped DraftWorldwide’s Premium Surge division as second premium agency alongside longtime shop Equity Marketing. Chicago-based Premium Surge will handle toys for kids’ promotions worldwide; DraftWorldwide is BK’s agency of record for promotions and merchandising. Los Angeles-based Equity Marketing stays on as primary creative and manufacturing agency for premium programs.
