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CASE STUDY: Burger King

Burger King is a global fast food hamburger chain founded in Florida in 1953 that now has over 16,000 franchises in more than 100 countries. It offers hamburgers, fries, chicken, and other fast food items, with the Whopper being its signature sandwich. In 2009, Burger King franchisees sued the company over a dollar double cheeseburger promotion, claiming the promotion price was below costs. The lawsuit was later dismissed with franchisees gaining more control over pricing for special deals and value menu items.

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Ushio Furukawa
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39 views

CASE STUDY: Burger King

Burger King is a global fast food hamburger chain founded in Florida in 1953 that now has over 16,000 franchises in more than 100 countries. It offers hamburgers, fries, chicken, and other fast food items, with the Whopper being its signature sandwich. In 2009, Burger King franchisees sued the company over a dollar double cheeseburger promotion, claiming the promotion price was below costs. The lawsuit was later dismissed with franchisees gaining more control over pricing for special deals and value menu items.

Uploaded by

Ushio Furukawa
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE STUDY: Burger King

Case Background

Burger King is a global chain of hamburger fast food restaurants. It offers mainly
hamburgers, but has other food amenities common in other fast-food chains such as
fries, chicken, sandwiches, shakes and many others. The "Whopper" is its main
signature product. Burger King is the second largest fast food hamburger chain in the
world.

It was founded in Florida, USA by Keith Kramer and Matthew Burns in 1953. It had an
original name of Insta-Burge King. Because of financial difficulties, it was then sold to its
Miami based franchisee, David Edgerton and James McLamore in 1955. They renamed
the company to presently known name Burger King, after that, the ownership of the
company has been passed around to different hand until purchased by 3G Capital in
2010 in which it converted into a private company. By this deal, the company’s net
worth increased. Due to this, the company claims to have more than 11 million global
customers.

In present time, Burger King is now a well-known fast-food restaurant around the globe,
available in more than 100 countries and franchises numbering at around 16,000,
47.5% of which was located in the United States. The CEO is Daniel Schwartz but
approximately 90% of the company is franchise-owned. Its net worth is estimated to be
around 7.5 billion US dollars as of December 2020. It has a headquarter in Miami, USA.
It competes with other global fast-food chains such as Mcdonald’s, Wendy’s KFC, Taco
Bell and Hardee’s

The fast-food hamburger company operated within the quick service restaurant
segment of the restaurant society. The company prided in being affordable yet having
enormous-sized burgers. It has put much of its emphasis on value meals. This
emphasis has whatsoever brought problem to the company.

In 2009, Burger King was sued by its franchisees over the firm’s double-cheese
promotion. They claim that the promoted price of 1 US dollar is less than its cost of 1.10
US dollars. They were angry that Burger King is forcing them to sell at a loss, especially
since there is a spike in the costs of ingredients. The Burger King said it was lure get
customers come to the store. The result was the franchisees agreed to dismiss the
lawsuit but they will gain more power to set prices for the fast-food restaurant chain’s
cheaper items as well as how long special deals run

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