Burger King Holdings (NYSE: BKC) has been a strong performer since its 2006 IPO, but as McDonalds (NYSE: MCD) has invested aggressively in modernizing its restaurants, Burger King is feeling the pressure to keep up.
Solution: The Whopper Bar. According to the Wall Street Journal(subscription required), Burger King will begin opening a new line of stores this year under that name, offering a wider variety of burgers and a hipper, more Gen Y-oriented atmosphere.
The stores and menu will be smaller but company executives told the Journal that the stores will include "as many as ten types of Whoppers such as the Western Whopper, the Texas Double Whopper and the Angry Whopper, a version topped with spicy onions. One menu sketch has a section called "Pimp Your Whopper," where patrons can chose from additional toppings like jalapeno peppers, bacon and barbecue sauce."
The Journal was also told that the company could possibly serve alcohol at some locations.
I like this idea: The Whopper is an extremely strong brand, and putting on the marquee and building a hipper brand around it should work well. Assembling the burgers in view of customers should bolster the company's image (assuming it's done in a classy way), and may help the brand appeal to a more affluent demographic turned off by the stigma of "fast food." Hopefully they'll open one near me.
Coming Soon: the Burger King Whopper Bar
Posted Mar 28th 2008 5:01PM by Zac Bissonnette
Filed under: Marketing and Advertising, Burger King Hldgs (BKC)
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
Reader Comments (Page 1 of 1)
3-28-2008 @ 6:29PM
brian said...
this seems like a good idea, actually. I think offering these in the denser urban areas or malls / upscale strip malls (in the way Subway or Quizno's operate) would open a good niche. the stores seem like they would dicated a smaller footprint which is good for higher rent ares with good foot traffic helping cover overhead.
FWIW I want to disclose I own shares in MCD and not BKC. but I like the move
3-31-2008 @ 5:00PM
marvin Jones said...
Pimp bar shure sounds "All American" - and as one of the analysts was quoted "I can't imagine a pimple-faced 'gross' kid or adult being out in front".
So many of the stores are so bad that it's hard to imagine seeing what "really goes on" -- some things are best left UNSEEN. A great product has somehow being "tackied down"....in additon alcohol no lesss - what a good wholesome notion!
4-23-2008 @ 8:22AM
harry said...
burger king could offer us a choice on the whopper. they could offer the regular or a deluxe black angus one.