As Momentum Begins, Emphasis is on Return to Core Consumers, Commitment to
Quality, Innovation and Differentiation and Unwavering Dedication to be
'Brilliant With the Basics'
ORLANDO, Fla., May 5 /PRNewswire/ -- Brad Blum, Burger King Corporation's
Chief Executive Officer, today reported on the progress of the company's
turnaround in an address to franchisees and employees at the company's annual
Business Information Meeting, held this year in Orlando, Florida.
(Logo: http://www.newscom.com/cgi-bin/prnh/20031014/BKLOGO )
Blum cited several encouraging statistics that demonstrate the company's
momentum is beginning to build based on a focus on its core consumers; a
commitment to quality, innovation and differentiation in its products; and an
unwavering dedication to be "brilliant with the basics" of operating each
BURGER KING(R) restaurant.
As part of his remarks, Blum released today the first monthly sales
comparison statistics since his appointment as chief executive in December
2002. These results for April 2004 showed company restaurants up
+7.3 percent, year over year, and franchise sales up +3.4 percent, also year
over year.
"While there is still much work to be done," said Blum, "we're beginning
to see results. We are encouraged that February 2004 marked the first time
the system had positive sales comparisons in 21 months, and April 2004 was the
single highest positive comparative month for company restaurants since
November 1999. In the past three months, 5,000 BURGER KING restaurants in the
United States experienced sales comp growth of +9 percent."
Blum noted that the Burger King Corporation's sponsors -- Texas Pacific
Group, Bain Capital and Goldman Sachs Capital Partners -- had invested an
additional $190 million in the business over the past year and a half, and
Blum said, "This investment symbolizes their ongoing confidence in the BURGER
KING brand, the management team and franchisees."
Building Momentum
Blum also reported on the success of several key initiatives that indicate
that the health of the BURGER KING system is improving.
Since establishing GuestTrac last October, BURGER KING restaurants have
improved in total speed of service, a key indicator of Guest satisfaction.
Since October, 30 percent more Guests were served in less than 150 seconds.
Additionally, the company cited subsequent figures indicating significant
improvements in four other key satisfaction areas, including a new "high"
rating in Overall Visit, the most significant measure of Guest satisfaction.
GuestTrac is a national program that collects Guest feedback from BURGER KING
restaurants in the U.S. Burger King Corporation is the only national Fast
Food Hamburger Restaurant using GuestTrac.
Three new products -- TenderCrisp and Spicy TenderCrisp chicken
sandwiches, the Angus Steak Burger and Fire-Grilled Salads -- are exceeding
the company's forecasts.
In head-to-head taste comparisons of TenderCrisp and Spicy TenderCrisp
chicken sandwiches versus Wendy's chicken sandwiches, Guests indicate that the
BURGER KING sandwiches were preferred.
Burger King Corporation's introduction of the Angus Steak Burger marks the
first time a national restaurant chain has offered this premium burger. Blum
said, "Our core consumers are responding enthusiastically to this thick,
great-tasting burger made with 100% Angus beef. The Angus Steak Burger is
performing ahead of our most optimistic forecasts, selling at 50 percent above
our projections."
Guest reaction to Fire-Grilled Salads has been equally positive. Blum
noted that in initial product testing, "The vast majority of consumers rated
our Fire-Grilled Salads better than or equal to those salads offered by
McDonald's and Wendy's."
These products, especially the introduction of the Angus Steak Burger and
the "made hot and fresh your way" Original Whopper(R) sandwich, demonstrate
the company's renewed focus on the core consumers of BURGER KING products,
which Blum described as "burger cravers" and "variety seekers."
The February 2004 selection of advertising agency Crispin Porter+Bogusky
also is producing solid results. According to industry sources, ranging from
the Wall Street Journal to AdWeek, Burger King Corporation's new advertising
to the company's core consumers is setting the national ad curve for recall,
memorability and likeability, key measurements to help determine the
effectiveness of advertising.
Our Future: "Brilliant with the Basics"
Blum challenged the BURGER KING system to become "a world-class franchise
organization, with absolute system alignment and a maniacal focus on
delighting our Guests. That's the essence of our 'Have It Your Way'
philosophy."
Blum also indicated that innovation will continue to be a hallmark of the
company's future. This innovation is particularly evident in the pipeline of
30 new products now being explored, compared with the single new product that
was being explored at the time of Blum's appointment.
Beyond new products, however, Blum noted that the future also would be
defined by a re-doubled focus on the essentials of the business.
"We must be brilliant with the basics," Blum said. "We are striving to
become the best in the world at executing the fundamentals of our business.
We're not there yet, but we're taking important steps toward this essential
goal." Blum noted that GuestTrac will enable the company to continue to
monitor operational excellence in all restaurants.
Blum thanked franchisees whose efforts have contributed to the momentum.
He also challenged franchisees not present at the meeting as well as those
lagging in vital performance indicators.
"Burger King Corporation will continue to hold franchisees to a high
standard of service, food safety and cleanliness," Blum said. "We fully
expect to continue our improvement in these areas, which we know are important
to our Guests. We have closed and will continue to close restaurants that do
not fully comply with these standards."
Blum also reiterated his call to franchisees that BURGER KING restaurants
serve the best burgers in the business.
"We must serve the best burgers in the business. It's our name. It's our
promise. It's our obligation," he said.
About Burger King Corporation
Our vision: We proudly serve the best burgers in the business, plus a
variety of real, authentic foods ... all freshly prepared ... just the way you
want it.
The BURGER KING system operates more than 11,220 restaurants in all 50
states and in 60 countries and territories around the world. Ninety-one
percent of BURGER KING restaurants are owned and operated by independent
franchisees, many of them family-owned operations that have been in business
for decades.
Burger King Holdings, Inc., the parent company, is private and
independently owned by an equity sponsor group comprised of Texas Pacific
Group, Bain Capital and Goldman Sachs Capital Partners. In fiscal year ending
June 30, 2003, Burger King Corporation had system-wide sales of $11.1 billion.
To learn more about BURGER KING, please visit the company's website at
http://www.burgerking.com.
SOURCE Burger King Corporation
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Related links:
http://www.burgerking.com
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NewsCom:
http://www.newscom.com/cgi-bin/prnh/20031014/BKLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
Company News On-Call:
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CONTACT:
Blake Lewis, Burger King Corporation,
+1-305-378-7277, or cell, +1-972-754-9966
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