AS Burger King works to modernize its brand image, the chain has confirmed that it already completed 370 restaurant remodels last year.
With over half of its remodeling efforts finished, the fast food giant is looking to take on another initiative two years ahead of schedule.
Burger King’s marketing and remodeling effort, dubbed Reclaim the Flame, was announced in late 2022.
The quick service chain has already made significant progress, Josh Kobza, CEO of Burger King’s parent company, Restaurant Brands International, shared on the company’s Wednesday earnings call.
Burger King successfully completed 370 remodels in 2024, passing the 51% mark for its reimage program.
The burger joint remains on track to complete 85% of its remodels by 2028.
Around 80 restaurants were updated to Burger King’s most advanced store model, the Sizzle concept, with these locations raking in impressive sales results, the CEO said.
Thanks to the chain’s Reclaim the Flame progress, US comparable sales rose 1.5% in the fourth quarter of last year.
On the other hand, McDonald’s – Burger King’s biggest competition – saw a 1.4% decline during the same period, mostly due to an E. coli outbreak linked to contaminated onions served on Quarter Pounders.
Burger King’s upswing marks a major turnaround for the company, which faced several franchisee bankruptcies following the pandemic as well as an aging restaurant system.
The chain had even predicted that up to 400 locations would close in 2023.
Burger King’s remodeling efforts have continued to boost the company’s overall sales.
Around 220 of the remodeled restaurants have been operating for over half a year and are delivering “an average of mid-teens year one sales uplifts” and “even stronger improvements in franchisee profitability,” said Kobza.
With a significant amount of progress already under its belt, Burger King’s parent company has its eyes set on another initiative.
Restaurant Brands International bought Carrols Restaurant Group, its largest franchisee, for $1 billion in 2024, acquiring 1,022 Burger King restaurants and 60 Popeyes locations.
The parent company plans to remodel and then break up the 1,022 Burger King restaurants ahead of schedule.
“We’ve initiated work to begin refranchising select locations in 2025, two years ahead of our original plan, and expect to accelerate refranchising efforts in 2026 and beyond,” said Kobza.
RECLAIM THE FLAME
Launched in 2022, Burger King’s Reclaim the Flame initiative was comprised of two parts.
The first part, called Fuel the Flame, consisted of a $150 million digital and media investment.
The chain allocated $120 million towards its US advertising efforts to boost traffic and grow sales, plus $30 million for developing the Burger King app.
Fast Food Meal Deals
Here are some of the current value meals offered by popular fast food joints.
Taco Bell’s $7 Luxe Cravings Box:
Chalupa Supreme Beefy Five-Layer Burrito Double Stacked Taco Chips and nacho cheese sauce Medium drink McDouble or McChicken sandwichMcDonald’s $5 Meal Deal:
McDouble or McChicken sandwich Four-piece Chicken McNuggets Small fries Small soft drinkWendy’s $5 Biggie Bag:
Junior Bacon Cheeseburger or Crispy Chicken Sandwich Four-piece chicken nuggets Junior fries Small soft drinkBurger King promised perks such as integrated payment processing, an improved Royal Perks loyalty program, and more personalized digital offers.
The quick service chain also sought to improve the convenience of delivery and pick-up options from the app.
The second part of Burger King’s Reclaim the Flame strategy was a $250 million investment in its Royal Reset plan, which featured two components.
Burger King outlined that it would allocate $50 million on revamping around 3,000 restaurants, including new restaurant technology, kitchen equipment, and building enhancements.
The second part of the chain’s Royal Reset involved spending $200 million on restaurant remodel projects at around 800 restaurants.
As Burger King’s Reclaim the Flame plan is underway, Wendy’s has spent $53 million on three changes to its drive-thru – but fans call it “horrible.”
Meanwhile, Chipotle is planning two controversial changes, sparking fears that the chain will offer “smaller portions and higher prices.”
AlamyRestaurant Brands International plans to remodel and break up the 1,022 Burger King restaurants it acquired ahead of schedule[/caption] Read More Details
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