In this file:
· Whopper Of A Turnaround: At Burger King, The 3G Capital Model Actually Worked
… Schwartz slashed overhead at the Miami headquarters. He streamlined food preparation. He dished out stock to middle managers. He shrank the payroll and the capital budget by selling company-owned stores to franchisees…
· Burger King Called 'Racist' For Vietnamese Burger Ad Showing Chopsticks
… The advertisement sparked outrage among Asian communities on Twitter. Social media users accused Burger King of "cultural insensitivity" and "racism" for underrating the tradition of eating with chopsticks…
Whopper Of A Turnaround: At Burger King, The 3G Capital Model Actually Worked
Chloe Sorvino, Forbes
Apr 8, 2019
This story appears in the April 30, 2019 issue of Forbes Magazine
Challenge: Make a 60-year-old hamburger chain into something cool. Daniel Schwartz accepted that assignment six years ago after 3G Capital took over Burger King and named Schwartz chief executive. He was 32.
Burger King was a tired outfit, with a confusing menu and sales going sideways. Its restaurants averaged half the revenue of McDonald’s. But where there is underperformance, there is opportunity. Schwartz slashed overhead at the Miami headquarters. He streamlined food preparation. He dished out stock to middle managers. He shrank the payroll and the capital budget by selling company-owned stores to franchisees.
In the years since, Burger King has become Restaurant Brands International (following some more classic 3G dealmaking). Restaurant Brands is now a growth stock. Burger King opened up 1,000 restaurants around the globe last year, to 600 for McDonald’s. McDonald’s stores still have a bigger average volume, but Burger King’s are gaining on them; in the U.S., BK boosted its average volume per outlet by 30%, to $1.4 million, while McDonald’s had a gain of only 20%. All of Burger King’s success is, of course, in stark contrast to what’s going on at Kraft Heinz, another 3G turnaround that went the other way. In February, Kraft Heinz said it was taking a $15.4 billion write-down, a signal that its classic food brands were losing value.
The situation is different at Burger King. At the parent-company level, where revenue consists mostly of franchise fees, Restaurant Brands took in $5.4 billion last year, up 17% from 2017. McDonald’s revenue was off 8%.
“How many companies that have been around since the 1950s grow the top line at 10%?” says Schwartz, 38.
For a fast-food conglomerate...
more, including links, infographic
Burger King Called 'Racist' For Vietnamese Burger Ad Showing Chopsticks
By Suman Varandani, International Business Times
A recent advertisement for Burger King's Vietnamese Sweet Chili Tendercrisp burger in New Zealand was slammed by social media users and dubbed "racist." The advertisement, which was a sponsored post on Instagram, shows customers attempting to eat the company's new chicken burger by using giant chopsticks.
“Take your taste buds all the way to Ho Chi Minh City with our Vietnamese Sweet Chili Tendercrisp, part of our Tastes of the World range. Available for a limited time only,” the caption accompanying the video read. Several people were seen in the video struggling to eat the burger with chopsticks, some holding them in separate hands.
The advertisement sparked outrage among Asian communities on Twitter. Social media users accused Burger King of "cultural insensitivity" and "racism" for underrating the tradition of eating with chopsticks.
Maria Mo, a Korean New Zealander, posted a video of the ad slamming the brand's use of chopsticks.
“It honestly took me a second to work out what the heck I was looking at,” Mo told the Huffington Post. “I was watching it thinking there must be some kind of layered twist ― only to [realize], no, there was no twist, it really was that base level.”
“I’m so sick of racism. Of any kind. Of the kind that makes fun of different cultures, to the kind that shoots and murders those peacefully praying in their place of worship. Say no to every single manifestation of it,” she tweeted.
Several other users agreed with her, saying the ad made chopsticks look "clumsy" and "stupid"...