Burger King SWOT Analysis || SWOT Analysis of Burger King
Burger King is a well-known name in the fast-food business and it is fully operating since 1954. It started its working from Florida and now it is working in almost every country. With Burger King SWOT analysis, you will understand the strengths, weaknesses, opportunities, and threats. So, let’s get started.
Name: Burger King (Original Insta-Burger King)
Parent Company: Restaurant Brands International
Founded: 1954, Jacksonville, Florida, United States
Founders: James McLamore & David Edgerton
CEO: Daniel Schwartz (Jun 7, 2013–)
Head office: Miami, Florida, United States
Type: Subsidiary
Category: Fast Food Restaurant
Area Served: World Wide Franchise
Industry: Ready Food
Number of locations: 18,838 (Burger King operated 52), franchised, 18,786
Annual Revenue (2019): US$ 1.78 billion
Net income | Profit (2019): US$ 0.643 billion
Burger King Subsidiaries: List
Burger King Competitors: MacDonald’s | KFC | Hardee’s | Luby’s
Burger King SWOT Analysis || SWOT Analysis of Burger King
Strengths of Burger King:
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Worldwide Existence:
Currently, Burger King is working in almost a hundred countries with 18838 functional stores. In addition, it is the world’s 6th biggest fast-food chain. With this strong worldwide presence, it is irrefutably the main strength of Burger King.
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Effectual Policies:
The reason behind the success of Burger King is its effective policies and strategies. They always follow the latest trends of the market. They recently selected a young CEO to enhance its working. This effective policy turned out to be most valuable for Burger King.
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Powerful Chain Model:
It is franchised with above 15000 outlets being possessed by franchisees. If you want to own a Burger King franchise, you just need to pay a franchise fee which is 45000 dollars. With an initial investment of 317100 dollars, you can own a Burger King’s franchise. This reasonable deal shows the powerful chain model of Burger King.
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Ample Variety:
Burger King’s major strength is its huge variety of products. They offer valuable domestic and global menu items to their customers. From different types of fries to buns, plant-based whoppers, burgers, chicken items, desserts, and beverages, they provide quality products in a wide range.
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Latest Offerings:
They always find and reinvent innovative and top quality products for their consumers. They invented plant-based sandwiches which attracted many users. With this innovation, Burger King has earned a major profit in 2019.
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Inventive Marketing:
Everything is possible with effective marketing. They recently introduced a hideous commercial reflecting a preservative-free burger weakening above 34 days. This interesting makes sure that the user can easily find the trademark for being natural.
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Healthy Products:
Burger King is not fully functional to provide healthy products, but in comparison with competitors, they provide healthy products. It is another major strength of Burger King and that’s why people love it.
Burger King SWOT Analysis || SWOT Analysis of Burger King
Weaknesses of Burger King:
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Overreliance on United States Market:
Burger King is heavily dependent on the US market and almost 44 % of its restaurants are working in the United States. With 9.2 billion dollars of total revenue, they generated this revenue from the US market. This could be dangerous for Burger King in case of any mishap.
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Confusing Commercials:
With a growing number of health-conscious people, any misleading commercials or ads about products oxidize the customer’s trust. But they are working on this project and recently introduced plant-based whoppers. They also working on vegan suitable products and prepared most of their products with egg-based mayonnaise.
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Over Franchising:
Burger King has managed its franchising model very impressively so far, but quick franchising can damage and weakens its franchising model. The recent conflict between Subway and franchise owners shows that rapid franchising can be risky.
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Not Have Enough Stability:
The rapid changes in leadership and ownership can affect the working and operations of the company. Burger King has changed its ownership 6 times in recent years which is quite phenomenal and dangerous for the company.
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Unconstructive Advertising and Scandals:
With negative publicity, the company has faced a lot of criticism from the users. Some controversies such as feeding horsemeat and vegan products, these kinds of scandals break the customer’s trust.
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Low Worth:
Most of the users expect the real worth of their money in the form of good quality products. Sorry to say, Burger King gives the cheapest to expensive products. That’s why they don’t have a potential consumer base and its users prefer other companies and products which is not good for Burger King.
Burger King SWOT Analysis || SWOT Analysis of Burger King
Opportunities of Burger King:
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Build up Market Existence:
Burger King is working to expand its outlets from 26000 to 40000. With this kind of strong presence, most of the customers can easily access their restaurants and outlets. This strategy is very effective and useful for Burger King and also helps them to compete with their competitors.
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Fortify Plant-based Alternatives:
After introducing ‘Impossible Whopper’’ sandwiches, their profits increased by 30 %. This is totally healthy product and very popular among customers. As we know that the people are moving to health-conscious products, that’s why Burger King needs to increase its plant-based options.
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Modify Portfolio:
Burger King has the potential to diversify its reach. They also need to focus on different sectors such as the grocery business. In this way, they can sell their plant-based whoppers on its own. They should diversify their restaurant business also.
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Pay More Attention to Rising Markets:
In order to increase its revenue and market share, Burger King should focus on emerging markets such as Asia, Africa, Latin America, and the Middle East. These markets have potential and can help to increase your growth and profit.
Burger King SWOT Analysis || SWOT Analysis of Burger King
Threats of Burger King:
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Worldwide Recession:
The world is facing a huge recession but food is a necessary item. Most of Burger King’s franchises confirmed bankruptcy in this economic hardship.
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Hard Competition:
Burger King is not only a single fast-food company in the world. The other heavyweights such as KFC, Dominos, McDonald’s, and Subway, Burger King are facing stiff competition. These companies can threaten the profit, market share, and burger war of Burger King.
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Increasing Health-Consciousness:
As the health-conscious society is increasing very rapidly, but most of Burger King’s products contain fat and animal products. That’s why it is considered an unhealthy brand in the eyes of some customers. Apart from this, the competitors of Burger King offer good quality and health-conscious products to their customers.
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Strict Rulings:
Due to different policies of governments, some things are unfavorable for Burger King such as taxes and tariffs. The demand for healthy products to improve lifestyle is also a big problem for Burger King.
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Rising Cost of Farm Products:
The increasing cost of farm products is also a big threat for Burger King. It can disturb its operations and sustainability.
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Universal Epidemic:
As the dining is completely cut off due to the current pandemic, the company is unable to pay rents and struggling to manage its expenses.
TAGS: BURGER KING, SWOT ANALYSIS, CASE STUDY, RESTAURANT INDUSTRY,
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