Can Burger King cause a comeback?
The fourth leg of Burger King’s plan is to reinvent the entire portfolio to improve the customer experience and return on investment for franchisees. Cil said the chain knows that having a modern, customer-centric and digitally integrated restaurant is key to fueling operators’ profitability. The company and franchisees are therefore working together to speed up the renovation process.
READ MORE: Burger King owner to modernize 10,000 Drive Thrus
RBI launched the “Burger King of Tomorrow” initiative several years ago, and Cil said the chain has made good progress, although he didn’t say how many people went through the process.
The fifth and final part of the strategy translates Burger King’s global advertising creativity into “even greater brand loyalty that drives long-term traffic and sales momentum in our home market”. Cil said Burger King has spent a lot of time on price-driven communication and still has work to do on high-quality messaging about the quality of its products.
Cil believes Burger King’s ability to turn around underperformance is entirely in his control no matter what the competition does.
“The industry has been competitive for a long, long time. It goes back to the burger wars in the ’80s and even before that, ”Cil said. “We believe that the opportunity to accelerate is a matter of focus and pace and is entirely in our control. I think our franchisees believe the same. Our teams believe the same. Everything is under our control. … I think we have a very strong team with Burger King. We have added top talent in the organization in marketing as well as in operations and the team is starting to come together.
RBI’s other brands, Popeyes and Tim Hortons, both had good quarters. Popeyes’ comparable store sales in the United States grew 26% over a two-year period, still driven by the viral chicken sandwich that debuted in the second half of 2019. Domestic AUVs stand at 1.00. $ 8 million, up from $ 1.4 million two years ago before launch. of the Popeyes Chicken Sandwich. The chain also opened a network of 34 stores in the United States quarter-over-quarter – the chain’s best second-quarter net restaurant growth since 2017. The brand ended the period with 3,562 stores in the worldwide – 2,667 in the United States and 895 internationally.
On July 27, Popeyes launched their next big menu innovation: Chicken Nuggets. A few weeks ago, RBI sent more than 110 Popeyes employees, along with field teams and trainers, to more than 1,200 restaurants across the United States to prepare stores for launch. Although it’s early, Cil said the nuggets are incremental and are attracting new demographics in the underutilized portion of the afternoon.
Comparable store sales of Tim Hortons in Canada fell 2.5% over a two-year period, after declining 14.1% in the first quarter over two years. The chain has grown to 5,065 stores worldwide, or 3,938 in Canada and 1,127 in the rest of the world. Tim Hortons’ digital channels mixed at over 30 percent, the highest rate among RBI brands.
Overall, RBI’s total revenue reached $ 1.44 billion in the second quarter, up from $ 1.05 billion last year. Adjusted EBITDA was $ 577 million from $ 358 million in 2020, and adjusted net income to $ 358 million from $ 154 million for the same period of the previous year.