Burger King Company Background

Company background of Burger King

Burger King Corporation is a global chain of hamburger fast food restaurant. It founded in 1954. The company has more than 12,400 outlets in 73 countries and employs more than 37,000 people who serve approximately 11 million customers daily. (Burger King Corporation, 2012) Burger King is growth by franchising in the fast food industry. They have a simple concept that is to attract the families with reasonably priced and served quickly. At the beginning of the business, Burger King just provide a basic offer of burgers, French fries, sodas and milkshakes, to compete with the direct competitor McDonald’s during that time, basic offer is not enough for the guest requirement. In view of this situation, Burger King provide and became the first chain to offer dining rooms and expand their menu with the Whopper, It has since become the signature product of Burger King. Although they developed the product, the prices were kept low.

McLamore and Edgerton are the founders of Burger King. They were ready to expand their business in 1959. They seems that franchise is the best way to take their concept to a broader market. They attracted their investors by selling exclusive rights to large territories throughout the country. It allowed Burger King to expand rapidly. The franchising system of Burger King also worked well for the franchisees. Some of the large company investors expanded at a rate rivaling that of the parent company. But they did not check on their franchises, it caused inconsistency in both food and service from franchise to franchise. In view of this, they began by introducing a more demanding franchise contract. Also, Burger King started to expand overseas market to consolidate the foreign operations of company and traditional area of weakness. In the 1980s, Burger King entered to Hong Kong market, because of intense competition and failure of propaganda, it causes the closure of Hong Kong Burger King business in 1990. Through the maturing system development of Burger King business in other countries, the re-entered to Hong Kong market in 2003, the market entry made a great threat for McDonald’s. It also enable the business of Hong Kong Burger King can continue presently.