Burger King has been in business for more than six decades. This SWOT analysis of Burger King can help people better grasp what it takes to be successful in business because of the company’s origins in Florida and its rise to global dominance. You can’t think of Burger King without thinking of McDonald’s, and vice versa. A well-known marketing plan says that Burger King’s market share is steadily growing, and it is also growing in the developing world at the moment.
For the purpose of this article, we are going to share with you some of the SWOT analysis for Burger King i.e the strengths, weaknesses, opportunities, threats, and other internal factors that have contributed to the development of the company.
|SWOT Analysis of Burger King|
Burger King SWOT Analysis; Is the Industry for Fast Food Saturated?
Strengths of Burger King
A Global Presence
About 100 nations and regions are home to the 18,838 Burger King restaurants that operate across the world. In terms of daily consumers, it is the world’s sixth-largest fast-food business. One of the brand’s primary advantages is its worldwide reach.
Companies that are well-run are always on the lookout for new and different ways to stay competitive in the market.
Burger King has chosen 32-year-old Daniel Schwartz as its new CEO in an effort to revitalize the stale company. Within a few years, the company was rebuilt and turned around by a new and innovative CEO.
Strong Model of Franchising
About 15,000 Burger King locations are currently owned and operated by franchisees. This business requires an initial investment of $317,100 and only a $45,000 franchise fee for you to own it. It’s the cheapest franchise out there.
Wide Variety Products
Burger King has enough options on both its foreign and domestic menus to please even the most picky travellers. A vast variety of options, including taro pie, poutine-covered fries, grilled burgers, drinks, and desserts, make it a popular choice for customers.
New Products and Services
Burger King is always innovating and re-inventing itself with new and exciting products.
Impossible Whoppers, a plant-based sandwich, drew in new consumers and helped the firm outperform earnings estimates in the second quarter of 2019.
Marketing that works should leave an indelible impression on the audience. Over the course of 34 days, Burger King’s preservative-free hamburger deteriorates.
Customers will always be able to tell that this particular brand is all-natural thanks to this eye-catching advertisement.
Healthier than Competitors
If you’re looking for a healthy meal, Burger King has a few better selections than most of its competitors.
Weaknesses of Burger King
Over-reliance on the US economy
Burger King’s stores in the United States accounted for 44.0% of total sales, or $9.2 billion. As a result, the corporation is vulnerable in the US market to any problems.
In the health-conscious world of today, making false claims about a product’s ingredients hurts consumer trust and turns them away.
Despite claiming that its Whopper is vegan-friendly, Burger King uses egg-based mayonnaise in the preparation of its Whopper.
Despite the fact that Burger King’s franchisees have been well-managed so far, the brand’s viability is threatened by fast franchising. When it comes to Subway and its franchise owners, Burger King can learn a thing or two from this.
The continuity of a company’s operations is jeopardized whenever its ownership and management are transferred.
Burger King’s management has changed hands six times. Most recently, Restaurant Brands International purchased the company.
Burger King loses more and more customers’ trust with every scandal and bad news story, whether it’s serving horsemeat or selling non-vegan Whoppers to vegans.
More and more clients are looking for the best deal possible. Unfortunately, Burger King’s least to most costly burgers are all of poor quality. As a result, it doesn’t have an established customer base, and its clients are free to dine elsewhere if it’s more comfortable.
Burger King’s Opportunities
Strengthen Market Presence
Every client will be able to find a place to shop if the company has a significant presence in the market.
Burger King recognizes the advantages of expanding and plans to open up to 40,000 stores by the end of the decade.
Increase Plant-based Options
When Burger King introduced the “Impossible Whopper,” a more healthful meal, its profits shot up by over 30%.
Increasing the number of plant-based alternatives on the company’s menu can take advantage of the ever-growing desire for healthy meals.
Burger King could move away from the restaurant business and put more of its focus on other parts of the business.
Instead of depending on other businesses to deliver its plant-based Whoppers, it might launch a supermarket company.
Focus on Emerging Markets
New markets with great growth potential may be found in rising economies from Asia to Africa and the Middle East.
Burger King’s Threats
The Economic Crisis
Despite the fact that food is a necessity, people tend to cut back on eating out when circumstances are tough. Reports say that Burger King franchise owners have already declared bankruptcy or put themselves in receivership.
Competitors like McDonald’s and KFC are challenging Burger King both domestically and internationally. Because of this, it is in a tough “Burger Wars” fight for customers, profits, and long-term survival.
There has been a growth in the number of health-conscious consumers, yet Burger King’s menu contains things that are considered unhealthy.
Customers who are concerned about their health may quickly leave Burger King in droves if a rival has healthier choices to offer.
Lifestyle disorders connected to bad food are becoming increasingly expensive for governments throughout the world. To stop people from eating too much fast food that makes them fat, governments could make rules that target places like Burger King.
Increasing Prices for Farm Products
Population growth and rapid urbanization are driving up demand for fresh agricultural products, while availability is declining at an alarming rate.
Burger King’s income and ability to stay in business, in the long run, are at risk because there isn’t enough fresh beef.
The pandemic is a threat to any company that needs its clients to leave their homes and consume in public places. Other Burger King franchisees are having trouble making enough money to pay their rent.
Who is Burger Kings biggest competitor?
Burger King’s rivals consist of McDonald’s, Hardee’s, KFC, & Luby’s. In relation to its competitors, Burger King ranks fourth in CEO Score on Comparably.
What are Burger King opportunities?
Burger King is always looking for hardworking individuals to fill the roles of crew members, service leaders, crew instructors, supervisors, lobby hosts, and assistant restaurant managers.
Who is the target audience of Burger King?
Burger King has segmented its customers into children, women, and youth, and as a result, it has launched a full set of ad campaigns for children as well as kid-specific menus.
Final Thought About Burger King Swot
After conducting a thorough SWOT analysis of Burger King, we’ve concluded that the store is the most successful fast-food restaurant in the world. Some of the biggest problems are the pandemic, the economic downturn, the controversies, and the increased competition. Burger King needs to use its current resources to fix these problems before it can expand into new markets and introduce new products.
Resources Used for This Analysis