INTRODUCTION

In Pakistan “Burger King commenced its business in 2014 by entering into master franchise agreement
with MCR which in has established branches and sold sub franchise in several major cities of
Pakistan”(Burger King, 2020a). Burger King Pakistan provides 100% halal food and in addition to its
famous burgers it has included products as per taste and requirements of Pakistani customers”(MCR (PVT)
LTD. | Karachi | Pakistan | Enic.PK, 2020). Firm has maintained its global standards and has exceeded
customer’s expectations in Quick Service Restaurant category. It enjoys huge popularity in local population
as it has modified some of its menus as per local preferences. It draws strength from expertise of its
international partners to consistent maintain high standards.

Burger King is taking advantage of enormous potential for growth in fast food sector of Pakistan by
positioning it as market leader in the longer run. Company is therefore more focused on quality assurance
and following industry best practices than short term profitability. It has tailored its operations and menus
keeping in view Pakistani customers and special economic conditions of the country. Firm has also given
special attention to designing restaurant exterior, interior and settings so to attract different age group
categories of customers. On one hand it offers elaborate sofa siting for seasoned customers while on the
other it has catered for younger customer base by providing flashy coloured themes, bar stools and play
areas.
However, it’s the quality of their service and food that brings people to Burger King at first place.

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 History
Burger King is a multinational chain of restaurants which specializes in flame-broiled fast-food burgers.
“It was founded in 1954 by James McDonald’s more and David Edgerton in Miami, United States”
(Robert, 2019). For the first time company extended its business outside US by establishing restaurant in
Puerto Rico during 1963. Currently Burger King has an excess of 18,000 outlets in more than 100
countries and has become a fast food giant rivalled by likes of McDonalds, KFC and subway (Chetan,
2020). Major portion of its business is based in USA and is financially very stable. Millions of people
daily visit BURGER KING® outlets across the world to taste its specialty foods (Burger King, 2020b). It
is because Burger King is famous for serving top notch and incredible tasting food in reasonable prices.
During past so many decades Burger King has built its global reputation by focusing on specialized
recipes, key ingredients and family friendly environment of its restaurants.
customize the ingredients of all BK® sandwiches.

1954
Burger King Corporation is founded by James McLamore

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 1963

Burger King Corporation

expands across Europe once
Grand Metropolitan PLC acquires the Pillsbury Company. This
acquisition converts smaller European burger chains into BURGER
KING® restaurants.

1994
Revised “Bun Halves” logo introduced.

1997
Grand Metropolitan PLC merges with Guinness &
Co. to form Diageo PLC.
Marking the fifth largest merger in history, Diageo
PLC becomes a world leader in branded food and
drinks, moving Burger
King Corporation's ownership from the
United States to
Europ e.

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 The BURGER KING®
"Bun Halves" logo is redesigned
and BURGER KING®
restaurant locations are given a
fresh new look.

2002
American companies Texas Pacific Group, Bain
Capital Partners, and Goldman Sachs Capital Partners
purchase Burger King Corporation from Diageo PLC,
moving the company's ownership back to the United
States.

2006
Leaving the private
sector, Burger King
Corporation becomes a
publicly traded
company.

Traded as BKC (NYSE)

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 3G
Capital, a global multi-million-dollar investment firm, purchases
Burger King Corporation, making it a privatelyheld company.

2012
Burger King is re-listed and becomes a publicly
traded company again. Traded as BKW (NYSE)

2014
Burger King forms a Joint VeKing.

SUPPLY AND DELIVERY SYSTEM

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Vendor Selection Process.
All the suppliers should meet the criteria set by Burger King Corporation; it includes all above
points. The procedure starts with the need for a new supplier by the system. If, Burger King
Corporation determines that the need for new supplier is critical, the proposed supplier will be
evaluated on the criteria mentioned above. This usually takes more than 90 days, on average it
takes 90 to 160 days to evaluate a supplier, after evaluation if supplier is selected then only
Burger King Corporation contacts the supplier and the decision is finalized. Both RSI and Burger
King Corporation, while selecting the new suppliers make sure that the supplier has enough
capacity and a capable supply chain to supply the products at the Burger King restaurants at a
competitive price.

Once a supplier is approved, the suppliers are continuously monitored by Burger King
Corporation and sometime third-party firms are hired for auditing and testing to determine the
compliance according to the BKC or Burger King Corporation. All costs related to the audit,
testing of the products by the third-party companies and even the costs associated with
evaluation are assumed by the new and approved suppliers. Most of the vendors, for example for
meat products, sauces and equipment used, vendors are selected by RSI and BKC, but for
vegetables and beverages, Franchises select their vendors according to the criteria given by the
Burger King Corporation.

Actions Description
Spend analysis for different categories of operations is done by RSI and burger
Spend Analysis
king.

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 The BKC uses different product strategies for its products; low calories burgers
liked by the health conscious people, they provide special TOY with the
Product
purchase of kid's meal, and they hit the customer with low bundle pricing.
Strategy
The
Wah Cantonment branch is directed by the centralized strategy
Burger king consider total cost of ownership while calculating the cost for the
Cost calculation product. The primary pricing strategy is market oriented pricing, and
and pricing secondary strategy is bundle pricing approach. All the branches in Pakistan
(including Wah branch) have same prices for regular burgers and meals.
Supplier are identify by the RSI according to region of restaurant, for Muslim
Vender countries they try to find Halal meat suppliers around the globe. They allocate
Identifications many resources to seek women owned or minority suppliers that they are
good in quality and competitive in cost.
Due to high competition, BK did not compromise on quality. They only procure
Bidding or from certified or approved supplier in that way they try to get maximum
Negotiation discounts on the base of quantity. All the negotiation is done by RSI. For Bk
Strategy Pakistan and Wah branch negotiation is done by MCR (PVT) Ltd, Burger King
Pakistan and RSI.

Supplier The BKC measures the performance on the bases of quality and time of
Performance delivery; secondly, they terminate the contracts if standards are not meet my
Measurement supplier. They use factor-rating method to check suppliers’ performance.

To minimize the risk RSI and BKC try to increase purchases from diverse
Risk suppliers and add new suppliers over the time, this method of diverse
Management suppliers increase the competition between suppliers that leads to the
efficiency and effectiveness.
Currently Burger King is dealing with almost 350 suppliers, Burger king
Supplier believes that their suppliers are their assets invest to develop skills for
Relationship suppliers, they said if we have good relationship with supplier then we will
Management continuously get high quality and low cost material.
The BKC believes that if they do things for betterment of society it will support
their business in a positive way and create good will in the minds of
customers. According to BKC, they provide all the information about nutrition
BK Corporate in their food.
Responsibility Burger king is very committed to its employee, as during these pandemic days
they do not expel their single employee. BKC invest in environment as
plantation of trees they help NGOs’ to reduce deforestation; they encourage
the farmers to develop better seeds and better yield.

NFA was founded by BKC in 1988 to serve its franchise community by

National providing them training and important education about restaurant
Franchisee management, they also provides advocacy services. The NFA facilitates the
Association members to focused programs to get the best service practices. Wah branch is
also member of NFA and get benefits to be up-to date internationally.

Burger King Delivery System

1. Internal Riders
Internal Riders are those who are on Burger King Payroll & comes in role when guest order via
Burger King App or when Zomato riders becomes unavailable & we run on Hybrid Mode.
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Burger King Delivery Setup
Setup As In Image
• Desktop ( To user LimeTray, Uber, Rider
dashboards, Live status check )

• Keyboard & Mouse (To accept orders on desktop)

• Landline or Mobile phone available (To connect
with
aggregators, guests, riders)
• Speaker for notification of new order
• Delivery RHI (Swiggy and Zomato), Sales Tracker,
Escalation Metric with store code and user credentials
• Dedicated Delivery KDS and Printer at assembly
Points

Delivery Setup includes system for Lime Tray Merge, POS for punching the order & Cashier till for
taking cash transactions in case of COD.

As an IT (Information Technology) Partner, “Limetray” helps us to merge the guest order in our
system for transactions purposes.

Essentials of Delivery Board

This board consists of Vital information about Delivery Station setup for any particular restaurant
which includes below: -

a.
Key Pointers
b.
Restaurant Health Index
c.
IGCC sheet
d.
Delivery Trade Area
e.
Station Observation checklist of Delivery station

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 f.
FAQ’s- Burger King Delivery

Burger King Delivery Work Flow

In simple term this is how our Delivery system works & during the entire process
we at Burger King ensure to serve Good Quality product with all hygienic practices
in place.

Types of Order we receive

COD Stands for Cash on Delivery, it simply means that guest will place order but
the payment will be collected at the time of Food delivery at their door steps.
Internal Riders must ensure to carry the sufficient change in order at the time of
accepting payment from guest.

Paid order are the once which are prepaid at the time of placing the order only.

Vendor Evaluation

The evaluation is done on the basis of following criteria:

a. Cost/unit
b. Ease of logistics
c. Reliability of the supplier
d. Use of advance technology
e. Quality & Quantity of the product
f. Strategic Fit

While keeping check on the criteria which is mentioned above in the section “selection criteria”,
all this is done by RSI and BKC itself while hiring third parties too. Factor rating method is used
for the evaluation. If the supplier is not able to meet the required standards, the contract is
terminated.

Development
As a large and global food chain, Burger King has many responsibilities that are related to the
suppliers. Involvement of a supplier in some illegal or harmful activity not only damages the
supplier but also affects the brand name and image of the Burger King, thus decreasing the
overall profits, market shares and brand value. As people are becoming more aware of the
effects of deforestation, Food chains are forced to terminate the contracts with those suppliers
that are related to the deforestation, Burger King had to change its supplier due to their

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involvement in those activities. Similarly, suppliers who use chemicals to increase the yields are
also discouraged. Thus, suppliers are now being forced by the Burger King, to supply meat and
other products without using supplements for increasing the yield.

2. Mission Statement
Focus on “offering reasonably priced quality food, served quickly, in attractive and clean
surroundings”(Burger King, 2019). Management strives to achieve correct pricing while maintaining
quality of products, which is overriding factor influencing customer satisfaction and loyalty.

3. Core Values
These are defined as “Teamwork, excellence and respect”(Burger King, 2020a). These core values
focus on creating a community that works on the basis of cooperation and good relations in order to
achieve standards that are a mark of excellence. Company strives to achieve leadership position by
acting as a role model for fast food sector through its globally recognized quality standards.

4. Project Outline
As part of vender and procurement management coursework our group studied various aspects of
Burger King Restaurant operations in Wah Cantonment with an aim to relate it with best practices of
vendor and procurement management and come up with suggestions for improvement. Group
physically visited Burger King Restaurant and had multiple interactions with the management to fully
understand their operations and draw pertinent lessons. This study will cover various aspects of the
project in the following sequence:
5.
a. Restaurant Orientation

b. Value Chain Analysis

c. Procurement Process

d. Vendor Management

e. Conclusions

Restaurant Orientation

Location. Burger King Restaurant selected for our project is located in Shop No 7, Sy No 458, Ground
Floor, near Big Bay Bistros, Yalagalahalli, Peresandra, Karnataka 562104

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6.1 Human Resource. Branch is managed by 15 staff members which include Restaurant General
Manager (RGM), shift manager, assistant manager, crew members and delivery boys (for home
deliveries within 8kms radius). Staff training is conducted in Karachi under the auspices of MCR
Pakistan and by properly qualified and certified personnel of Burger King Corp. Crew members
and delivery boys have been cross trained and can work in interchangeable roles providing added
flexibility to restaurant management. Staff is interconnected with wireless headsets and works
under constant supervision of shift manager who ensures service standards, accuracy and
efficiency.

6.2 IT Systems. Burger King has embedded SAP database, vendor integration and cloud-based
processing systems into its supply chain to evaluate, control and make informed decisions. It
has developed SAP based ingenious solution in the form of Kitchen Minder that keeps record
of daily and consumption patterns. Burger King uses global trade Item numbers (GTIN) and
product identification system to ensure required items which meet premium quality standards
are accurately sourced and delivered to its restaurants throughout the world. In addition to
cloud based system,

Wah cant branch also maintains its record on MS Excel on a standalone PC.

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 6.3 Operations. Traditionally branch operates in two shifts i.e. morning & evening. However, due to
Civid19 it is presently operating only one shift from 6 pm to 12 am which solely caters for take away
customers. Daily inventory is calculated on proprietary system developed by Burger King Corp which
includes Kitchen Minder interfaced with product holding units, Kitchen Display screens (KDS) and
digitalized demand generation system. Perishable items are stored for additional 24hours demand
whereas frozen item worth 3 days demand are kept at all times. Restaurant offers standard menus
approved by Burger King USA as well local adjustments as recommended by MCR Pakistan. Some of
the most popular menus include:-
(a) Beef Whooper Burger

(b) Beef Steak Burger

(c) Chicken whooper
(d) (d) Kiddie meals.

Procurement Management

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 7.1 Supply Chain. The supply chain activities at Burger King are managed by another
company called Restaurant Service, Incorporation (RSI). “RSI is working on the behalf of
Burger king since 1991” (Restaurant Services, Inc., 2020). RSI is responsible to provide
best possible contract with suppliers for food, packaging material, cooking equipment,
promotional products (like billboards, T.V slots, electronic displays at restaurant etc.), and
distribution services. The RSI claims to ensure the best supply chain at best cost. RSI
carries out $3 Billion dollars spending every year. According to burger king they are
responsible for the every hardware used in burger king world wide, they provide supplies
to regional distribution centres and then deliver to each restaurant at right quantity, right
time, and right product. RSI although an independent company is owned by Burger king
Corporation (BKC). Any person who is operating franchise of burger king is eligible for the
RSI membership. RSI is responsible for passing timely information to businesses and
ensure visibility of supply chain to run the restaurant profitably (Restaurant Services, Inc.,
2020).

7.2 Innovations. There is intensive competition between fast food companies around
the world (Yang, 2012). Burger king is very concerned with the procurement process to
maintain low cost and high quality. When there is any demand for new product or future
need of any product identified by burger king, this demand or need is communicated to
RSI. The RSI analyses the market and finds the best suppliers or revisits existing
suppliers, monitor the associated risks with these suppliers and then sign the contract with
supplier. The contracts with suppliers is done by using DocuSign (DocuSign, 2003).
DocuSign is an American company that facilitates organizations to conclude contracts
electronically. This cloud-based service, remains assessable from any device or location.
The RSI spends $3 Billion per year for the procurement of burger king and do all the
procurement process and transactions electronically, which saves millions of dollar by not
using paper and classic mailing services.

Spend Analysis
The spend analysis is the process of improving cost efficiency, reduce the risk and improve
relationship with supplier by revisiting the spend data or expenditures (Personal & Archive,
2019). Spend analysis can help organization to improve its performance (Maržić et al., 2014). In
the Burger King spend analysis is done in two different stages first is capital and other is
operational spend analysis. The Capital spend analysis is done by RSI as; development of new
branch, purchase of new equipment and spending on logistics. The spending on daily activities
like; procurement of meat, vegetables, sauces and other daily activities is analysed by the BKC.
Wah branch carries out spend analysis with the assistance of MCR Pakistan and with inputs
from Burger King Corporation and RSI.
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 8.1 Data Collection. The burger king all around the world uses SAP for the financial activities
like; incomes from sales, spending on bills employee salaries and purchasing of raw material.
SAP provides the platform to do spend analysis on the base of historical data.

8.2 Data Extraction. Burger king do spend analysis at every closing, they get all the required
data from SAP. After getting spending data from SAP the managers, remove any
inaccuracies.

8.3 Grouping. The manager of BKC and MCR categories data in to various categories for
further analysis of various aspects of procurement functions.

8.4 Data Analysis. The managers analyse the grouped data and identify
opportunities to reduce the cost and take actions for value addition/ improvements.

Burger King Vendors in Pakistan

Burger king in Pakistan, has different suppliers for all the required products. RSI is responsible
for the major part as it manages the basic and critical products such as Kitchen and design. For
vegetables, local firms are contacted, in Pakistan for Wah Franchise, the supplier is Ahmad
Enterprise, it is responsible for fresh and quality vegetables that are provided on a day notice.
Pepsi, is the main supplier for beverages as it supplies the syrup to the Burger King, depending
on the demand of the products, if the demand is high, it is once a week, if demand is normal than
2 times in a month. For perishable items, such as Chicken and Beef Products, no local supplier
is contacted and the globally selected vendors are contacted. For Pakistani market, the chicken
and beef products are imported from United Arab Emirates based firm. Only 3 days Stock of
perishable products is maintained and is supplied from the warehouse which is located in
Lahore, using specialized vehicles.

Vendor Products
MCR Design + Menu

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 BK America Kitchen Design + Equipment
Dawn Buns
Pepsi Beverages
Ahmad Enterprise Fresh Vegetables
RSI Chicken Products
RSI Beef Products
AATCO Sauces

Vendor Selection Criteria

Burger King is currently operating in different countries, it has a large supplier base of
approximately 350 suppliers. Burger King recognizes these suppliers as the integral and most
important part of the system and it assumes that these suppliers will continue to provide
excellent services to the Burger kings and will make use of the best quality marketing services.
Since the portfolio is large and the suppliers are diverse, Burger Kings is doing great in
managing these suppliers. For these purposes, Burger King uses the services of ‘Restaurant
Services Incorporation” known as RSI. This is an independent distributive cooperation that
manages the supply chain of the Burger King. It works to provide/secure the best possible
prices for all related items such as food, products, packaging etc. Everything such as Buns,
toasters, boilers is managed by RSI and they make sure that there is a smooth supply of these
products in an organized way making the system more efficient.

Key Selection Criteria

An extremely thorough and careful vendor selection procedure makes sure that the products can
live up to the expectations of the customers. This involves close examination by the global
vendor approval program and also includes internal and technical evaluation. The selected
samples are tested at least two time in a year. For example, for the supply of vegetables and
beverages, Burger King, Wah Cantonment, has to make sure that these steps are taken, to get
the best quality of the product from the local vendors. As explained by the CEO, Burger King
work very closely with all the vendors to get most out of each other, as a brand that started from
the scratch, it was very important to work closely over each aspect, such as selection of menu,
design of kitchen and most important part, is the logistics. This is the criterion used by Burger
King Corporation as a platform to evaluate and select when they are evaluating the vendors.
Following are the key criteria points that are considered for selection:

• Alignment with core competencies.

• Alignment with strategic goals.
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 • Rate of Return.
• Ability to adapt to new changes.
• Alignment with customer service improvement.
• Food quality.
• Cost.

Alignment with Core Competencies

Those activities that are very critical and important to achieve business targets and goals are
known as core competencies. These may include the information about the technical
aspects of the business, know how about the subject in question, providing a reliable
process and ability to maintain the relationship. These can also include the cultural
development as well as product development. Therefore, when Burger King, selects the
suppliers, it makes sure that the all the core competencies related matters are considered
and the supplier that is under consideration is capable enough to facilitate in the long term,
in this strategic point.

Alignment with Strategic Goal

Whenever a supplier is selected or is under evaluation for future selection, Burger King
makes sure that this selected firm is in line to the strategic goals of the organization so that
the organization doesn’t deviate from the goals that burger king is trying to achieve primarily.
Basically, to make sure that all the core competencies and goals are factored and
considered while selecting the supplier.

Rate of Return
IRR or Internal Rate of Return is a term used to measure and then compare the profitability
of selecting a certain element, and it is an indicator that shows profitability, yield, cost
cutting, and efficiency. This term is used by the Burger King to evaluate if selecting the
supplier is profitable and efficient. And if an investment is made during selection of the
supplier, how much is the rate of return in that specific case.

Alignment with the Customer Service Improvement.

In the food industry, especially, the fast food industry, the customer has a lot of choice, such
as McDonalds, KFC, Burger King, Subway and many others, making the food industry one
of the most product discriminate industries. Burger King is differentiating itself by delivering
Customer Experience. They did this by making Customer Experience part of their core
selection criteria. While selecting a supplier of a specific product or SKU, it is made sure that
the supplier will provide the best possible quality of that item so that the consumers won’t
have a bad experience. This is done by checking the previous records of the supplier, testing

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 the items again and again the in the labs of the Burger King, under quality management and
the ability of the supplier to engage in long term customer improvement programs.

Ability to Adapt to new changes

This is another essential criterion, which basically shows the urgency of the selection of the
particular supplier and how quickly that supplier can manage to supply the products. This to
make sure that the suppliers are capable enough to respond to a certain change in the
pattern or the demand and can overcome the challenges and adapting the new ways and
techniques.

Quality
As mentioned in the customer service improvement, most important for Burger Chain is the
quality of the food that is served to the customers. Like every other fast food company, the
aim is same and it consists of:

• Safe and Organic Food.

• Hygienic Environment
• Best Quality.
• Best standards.

This is totally dependent on the food that is received from the suppliers that’s why, Burger
King focusses on the supplier’s processing of the food. For these purposes, not only test is
performed twice a year to check the quality, but the quality assurance teams keep a constant
check on the supplier to make sure that each step is being taken to make sure that the
standards are met. This is not only for the vendors, but also for the franchises, if the
standards are not met, this results in the termination of contract with the vendor or the
franchise.

Cost
Main factor while selecting the supplier, is the total cost that will occur due to that supplier.
This includes all the costs that can be fixed and variable costs, such as cost occurring during
the supplies as most of the items are perishable. Burger King tries to minimize these costs
occurring due to the suppliers while keeping the quality at the best level and meeting all the
quality and health related standards. After selecting the suppliers, further negotiations take
place if required to reduce to costs involved.

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 Comparison with Best Practices
Performance of Burger King Franchise and MCR Pakistan being master franchiser has been
studied to assess their compliance to internationally established standards. Effort has been
made to compare and contrast the current strategies at each stage against the best-practice
benchmark principles of vendor and procurement management. To this end following aspects
have been compared in the table as mentioned below:-

Comparison between best practices in the theory and Current Practices at Burger Kings

Sl.No
Theory Current Practices
.

Routinely evaluate suppliers and

Burger King Routinely evaluate their suppliers and
1 rank them from best to worst
evaluate them using the factor rating method.

Burger King terminates the contracts with the

Poorly Performing candidates
2 suppliers if the improvement is not satisfactory after
are eliminated.
warning.
Burger Kings focusses on those vendors that already
Middle of the Road suppliers are have a proven record and a good supply base,
3
candidates for development normally burger king doesn't invest in the small level
suppliers.
Burger King remains in contact with the top
Jointly identify key areas of
management and identifies the areas that need
4 improvements by meeting with
development and forces the suppliers to improve
the suppliers top management
those areas.
Long-term contracts are made Contracts between the Burger Kings and its suppliers
5 with the key suppliers on the are of long-term nature and depending upon the
continuity basis service provided by the suppliers
Short-term contracts are made Contracts with the suppliers, such as with Ahmad
with suppliers that are supplying Enterprise is of short-term and is dependent on the
6
easily available quality and quantity provided by the supplier. If not
products satisfactory, a new supplier is selected.
Burger King uses the same supplier for chicken and
More than one supplier for meat related products for more than one regions that
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critical items can cause problems in case of disruption in supply.

Burger King recently has forced its suppliers to make

Environmental Regulation their processes environmental friendly, such as the
8 Compliance of the Suppliers is area they use doesn’t cause deforestation, not
mandatory supplements are used to increase the meat yield from
the farms.
Contract management process Burger King Corporation uses Docu Sing, a platform
helps in reducing the costs, time where contracts are signed between the organization
9
and resources used in the and the digitally saving both time and cost
process.

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 Value Chain
The fast food restaurant value chain is an important part as it shows the whole process of
converting the raw materials into finished products and making it available for consumers. It is
the process of adding value at every step in the supply chain of a firm. The raw materials are
processed into finished goods with a higher value. Value chain aid the firm by showing a clear
picture of the flow of products/services throughout the organization, unveiling the bottlenecks at
various stages, showing relationship of different key components, highlighting the strategies of
the firm and identifying the important support activities (Bammann,2019). While supply chain is
simply an integration of all processes like procurement, manufacturing and delivering to
customers, value chain breaks down each step of converting raw materials to finished products
and shows the support activities or value added at each step (Ricciotti, 2019).

Inbound Logistics
Inbound logistics include the raw materials purchased at the initial step. Items procured and
transported under inbound logistics category at Burger King are buns, bread, beef, chicken,
vegetables, sauces and cold drinks.
a. Buns
The buns and bread are procured from the Dawn bread, Pakistan. It is distributed
at 3 day notice from Lahore. It is distributed through the vehicles owned by the
Dawn bread company.
b. Frozen Items
The frozen items like beef and chicken are cut according to requirement. The
supplier is Dubai based and sends the stock at the warehouse located in Lahore. It
is sourced at this branch at 3 day notice and the stock is kept for 6 days.
c. Vegetables
Vegetables are procured from local vendors. Effort is made to procure best quality
fresh vegetables available in the market. The franchise keeps stock for 3 days only.
The fresh vegetables include:

• Onions
• Potatoes
• Jalapenos
• Pickles
• Lettuce
d. Sauces

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 The supplier of sauces is AATCO food industries located in Oman. As sauces have
greater expiry dates so they are procured twice a year.

e. Cold drinks
The cold drinks include Pepsi, Marinda, 7up and Dew. Their filling stations have
stock for 1 month.

Processing
The process of converting raw materials into usable form so that it is available for cooking when
the customer’s order either through call or in person at the branch. The menu includes beef
whooper, beef steak, chicken whooper, kitty meals and fries. The menu is designed keeping in
mind the cultural and regional aspects of the region. The menu differs in different countries
according to their priority.

The calls for home delivery are entertained at the Karachi call centre. This centre then directs the
call to the franchise of the respective area. At the time of the order, it is recorded in their digital
system and then passed on the kitchen system and workers start preparing the order.
This also helps to update the system for the inventory levels.

Burger king has focused more on the ambiance of their restaurant. Since the atmosphere and
design of the restaurant has great impact on the customer’s thought about the image of the
brand (Whaley, 2019).

Outbound Logistics
At international level outbound logistics is exclusively looked after by RSI however with in
Pakistan a portion of that is managed by MCR Pakistan. For this particular branch in Wah, out
bound logistics includes making and delivering the final order for dine in, take away or home
delivery. The franchise has crew members and delivery boys allocated for this purpose.

Supporting Activities

a. Distribution. Franchise uses the option of home delivery and covers the radius of
8kms. Delivery boys are given petrol and good transport to make timely delivery.
This helps the franchise to reach out to additional customer segment.
b. Marketing. The marketing of burger king is mostly through bill boards and their
main focus is social media marketing. The customers are informed of the latest
deals and discounts through Instagram and Face book.

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 c. Quality Management. Burger king is very cautious about quality. As high quality is
important for providing a competitive advantage to the franchise. Every vendor’s
performance is evaluated carefully. The quality is main focus of the firm.
d. Human Resource Management
As burger king has to survive in a competitive environment so it emphasizes more on the
employee training. It has a contract with MCR. The MCR Karachi has special US trained
chefs and it gives training to employees so they can operate machines and different
kitchen equipment with efficiency. MCR also aids pizza hut and other restaurant chains in
training their employees up to the mark.

EXTENDED VALUE CHAIN

QUALITY MANAGEMENT

USE OF INFORMATION TECHNOLOGY

SECONDARY

MARKETING

HUMAN RESOURCE MANAGEMENT

DISTRIBUTION

OPERA OUTB CUSTO

INB

OUN TIONS OUND MERS

D LOGI

VALUE CHAIN MAPPING

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 Gap Analysis
Burger king has a strong grip on the market and has a bright future ahead. It has a strong
employee base accompanied with best practices. After the complete analysis of the procurement
practices of the burger king, we identified certain gaps in the procurement and vendor
management processes. There is capacity to improve some processes so that it is better
equipped to handle uncertainties in the future. By accomplishing these, it can have a competitive
advantage over similar fast food chains and can have a more loyal customer base. The problems
we identified are:

1. Burger king import its equipment and other furniture from United States. This leads to
increased restaurant setup cost since there are higher labour charges, manufacturing
costs and taxes in US.
2. It has not guided public properly of SOPs being used in the wake of corona virus
pandemic. The lack of proper marketing is main problem since customers don’t know
about the SOPs being used and they have trust issues.
3. The old menu is also an issue as the competitors are continuously bringing an
innovation in the menu according to changing conditions and tastes of the
consumers. Burger king has restricted itself to burgers and snacks.
4. Additional costs are incurred on import and transportation of frozen items like beef
and chicken from abroad.

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5. More focus is to maintain international suppliers and little attention is given to local
suppliers. There are few backup suppliers from Pakistan to fully address
requirements of local franchises in case of emergency.

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