Burger King’s 20/20
Remodel vs. McCafé
By
Bailey McEuen
Susan Kjos
Robin Knudtson
Trends
McDonald achieved the First Mover
Advantage
 More Families dining at home
 Fast Food Kitchens to Casual Dining
 Going Green
 Generation Y

Burger Kings 20/20 Design
Contemporary and industrial
design
 Finishes that resemble brick and
concrete
 Urban masculine design
 LCD menu screens and rotating
flame chandeliers
 New design give guests more
valuable restraint experience
through ….
 Offers dining options
 60 different locations worldwide
and 75 more to be open by end
of next year
 Cost franchisees $300,000$600,000 to remodel

The New Whopper Bar
Create whole new
experience to create the
best service experience.
Introducing “Whopperistas”
Customize burgers with 22
different toppings.
-”Bars Favorite Lists”
Making locations more
accessible for
-implementation into new
markets through creating
their stand alone locations.
2009 Menu Comparison
McDonalds Mission
History:
A restaurant originally known for….
competitive advantages includes…




Started investing intensely in advertising and revamping
their image.
McCafé designed to offer customers affordable luxury.
Increase customer satisfaction through:
-Wifi
-Upscale Tables and Chairs
-orders served on signature dishes.

Old Competitors
include…

New Competitors
include…
Positives and Negatives to redesign
Positives:
 Remodeled Burger
Kings: Increase in
profits of 12-15%
Completely rebuilt
branches:
Increase of up to 30%
Whopper bar emphasize
their “Have it your
way” moto.
 Larger span of new
customers
 $1 Billion in revenues
on McCafe alone over
a year
Negatives:
•Business mostly through
drive through will not be
affected by remodel.
•High costs in remodel
creates long term debt
for franchisee.

Rivals among competitors

Burger King’s effort to ENHANCE the
experience.

McDonald’s main strategy is to
use franchises to enter into
markets.
-25, 465 operated by
Franchisees
-6,502 operated by the
company
-In 118 countries
McDonalds Gross Profit
(March 31, 2009) $1.8 Billion
(June 30, 2009) $2.1 Billion


Burger King also uses the
same strategy to enter into
markets.
-10,496 operated by
franchisees
-1,429 operated by the
company
-In 73 Countries
Burger King Gross Profit
(March 31, 2009) $203 million
(June 30, 2009) $167.6 million

Which Restaurant do you prefer?
Sources
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(2007, May 07). Papascott background on Mccafé. Retrieved from
http://www.papascott.de/archives/2007/05/07/ background-onmccafe/
(n.d.). McDonald’s Corporation. Retrieved from
http://www.hoovers.com/mcdonald's/--ID__10974--/free-cocompetitors.xhtml
Yahoo Finance, "MCD Yahoo Finance". Yahoo. Oct. 22, 2009
<http://finance.yahoo.com/q?s=MCD>.
Yahoo Finance, "BKC Yahoo Finance". Yahoo. Oct. 22, 2009
<http://finance.yahoo.com/q?s=BKC>.
King, Burger. "Burger King Corp.'s Bold New Global Restaurant
Design Takes Flight At Amsterdam's Schiphol Airport". Burger King.
Oct. 22, 2009 <http://www.bk.com/en/us/companyinfo/press/press-release1015.html>.
Jerry. "Environmentally Friendly Cars". Green Cars. Oct. 22, 2009
<http://environmentallyfriendlycars.org/>.