Summary
Is Burger King playing with a full deck?
McDonalds wins this game hands down.
Other QSR's such as Carl's, Hardees, Wendys, & Jack In The Box are eager to play, so in my opinion, I would fold this idea right now.
Analysis
Of course now is "NOT" the time for Burger King to redesign their restaurants or for that matter, come up with a new prototype.
This should have been done 3-4 years ago when they were on a roll and money was more available.
Franchisees will scoff at the idea of having to borrow money in this economy, and a lot of hands may be folded.
Right now Burger King needs to maintain profitability, and get down to becoming better operators until this economy bounces back which won't be until mid 2010 at the earliest. Franchisees cannot afford the financial pressure, and the consumer will not allow a fast or even a good return on the investment until we see a light at the end of the tunnel.
Then, it would be time to reinvest in an icon which still can somewhat compete with the true King......................McDonalds'.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
