Burger King Will Enter into the Coffee Battle


Late Tuesday, Burger King (BKC) announced plans to revamp its breakfast menu in an attempt to turn around its floundering business. BKC is going to add Starbucks (SBUX) and Seattle's Best coffee to all of its U.S. restaurants.

BKC's senior vice president John Schaufelbeger stated, "We'll be delivering a better cup of coffee" -- a strategy that has paid off greatly for rival McDonald's (MCD). MCD's addition of quality coffee drinks to its menu has provided a boost to its total sales -- results BKC hopes to emulate.

My initial reaction was to question the strategy: Would adding high-priced coffee to the menu help BKC? But the suggested price for the coffee ranges from $1 to $2.79. Schaufelberger added that we "should expect to see new and improved products from Burger King at breakfast." In this case, following MCD's lead isn't a bad move, as Ronald and company demonstrated that providing a good cup of coffee at a low price will draw customers and boost sales. I can't blame BKC for trying to jump on the brew bandwagon and drive sales higher.

In addition to this announcement, BKC stated that its double cheeseburger will now cost $1.19. This burger has been advertised as being bigger than MCD's double cheeseburger for a smaller price (BKC charged a buck for the burger with two pieces of cheese), a move that disgruntled some of its franchisees. This burger will now cost $1.19 and the BK Dollar Double will now have one piece of cheese and will cost the eponymous dollar. It's just a hunch, but I feel that many consumers will think that this situation was one where BKC should not have followed MCD's lead.

Bottom line: BKC is finally joining the breakfast bandwagon, realizing that a solid breakfast menu featuring good, inexpensive coffee can help boost sales. It is about time, because the King and crew are on the verge of being left far behind in the fast food game.
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Last updated: February 10, 2012: 01:47 PM

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