Burger King Launches UK Expansion Plans

Burger King is set to expand its presence in the UK with a large number of new store openings, creating around 1,500 jobs. The company, owned by Diageo, currently has 455 restaurants in the UK, with plans to break the 500-mark by the end of the year. As part of its expansion plans, Burger King will be launching a multimillion-pound advertising campaign, highlighting its supposedly better-tasting flame-broiled burgers and new-formula fries. The move follows similar developments in America, where Burger King is aiming to challenge McDonald's dominant market share.

Key Takeaways:

• Burger King plans to open 60 new outlets in the coming year, in addition to the 61 opened in 1997.
• The company expects to break the 500-store mark in the UK by the end of the year.
• Burger King will be spending $70 million (£42 million) in the US to promote its new-formula fries.
• The company is looking for good-quality franchisees to drive growth, with around 90% of its UK outlets currently franchises.
• Burger King aims to expand its UK network to between 700 and 900 outlets in the next few years.
• The company partners with large corporate partners, smaller PLCs, and independent business owners to achieve its growth goals.
• Burger King has recently opened a test site with Shell UK and plans to roll out further sites in the coming months.

Statistics:

• Burger King has 455 restaurants in the UK, compared to McDonald's over 780.
• The company has opened 61 new outlets in 1997 and plans to open 60 more in the coming year.
• Burger King serves around one million Whoppers in the UK each week.
• The company is spending $70 million (£42 million) on promoting its new-formula fries in the US.
• Burger King's worldwide operating profits lifted 8% to £170 million in 1997.

Sources:

• The Times, 1997
• Diageo annual report, 1997
• Burger King UK press release, 1997
• "The merger of Grand Metropolitan and Guinness creates Diageo" by The Times, 1997