Burger King to Make $250M Investment in Restaurant Tech, Store Design
Burger King Company plans to invest $400 million over the next two years, earmarking $250M for restaurant technology, kitchen equipment, building enhancements and high-quality remodels and relocations, and $150M towards advertising and digital investments.
Enhancing CX
The plan was built in collaboration with franchisee leaders from across the country and was shared with all U.S. franchisees at its annual convention last week.
This investment is designed to modernize the Burger King restaurant portfolio, and, will help drive its goal of improving the guest experience and attracting more traffic back to the brand.
72% of consumers prefer to order delivery direct from the restaurant, according to HT's 2022 Customer Engagement Technology Study.
"Over the past year, Tom has built a talented leadership team that has worked collaboratively with Burger King franchisees to develop a multi-year plan to drive the performance of the system. We believe now is the time to make a significant investment to accelerate the work given the quality of the team, focus of the plan, commitment of our franchisees and the opportunity that clearly exists for our iconic brand to Reclaim the Flame and be the first choice for a high-quality meal, an exceptional experience, and a great value," said Jose Cil, CEO of Restaurant Brands International.
Reclaim the Flame
The Reclaim the Flam plan is designed with targeted initiatives that will work in concert with one another to improve all the fundamental aspects of guest experience: perception of the brand; high-quality menu offerings at everyday value; engaging and relevant advertising; high quality modernization of restaurants; and an all-around improved service and execution.
App Investments
Burger King will invest $30M through 2024 to support guests ease of ordering on the Burger King app which includes integrated payment processing, enhancing the Royal Perks loyalty program, the addition of digital personalized offers, and improving the overall convenience of delivery and pick up options. This investment will continue to strengthen the brand's digital channels that now generate ~$900M of annual system-wide sales in the U.S.
The Burger King $250M investment plan involves investing $50M of capital over the next two years alongside a comparable co-investment from franchisees in a restaurant refresh program touching ~3,000 restaurants across restaurant technology, kitchen equipment, and building enhancements.