Burger King Corp.’s CEO Brad Blum last week mapped out a new strategy plan for the No. 2 QSR that de-emphasizes discounting and plays up quality.
The company will continue to differentiate its open-flame grilling methods from McDonald’s fried burgers, according to a company statement.
Blum laid out the plan, which includes a long-term branding campaign built around 30- and 60-second radio and TV spots and an overall increased use of network TV, at an annual meeting of franchisees in Dallas. BK is relying on Young & Rubicam to take on the majority of its $350 million advertising account, while Y&R’s WPP Group sister shop Wunderman tackles promotions (April 18 Xtra).
Miami, FL-based BK will simplify its menu with quality—not discounted—products and pursue healthier options, Blum said. QSRs have seen sales drop in the wake of price wars.
BK’s operating profit dropped $27 million in year ending June 30, 2002, while one of its largest franchises, AmeriKing filed for Chapter 11 bankruptcy in 2002. Last year, Oak Brook, IL-based McDonald’s controlled approximately 43% of U.S. market share while BK had 18%.
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