MIAMI -- With its management resources already spread thin by the recent foray into new markets, Burger King Corp. is forging ahead with its plan to turn a burger chain into a multiconcept fast-food empire.
The strategy call for the energy formerly devoted to a single chain to be divided among bolstering the 4,334-unit Burger King chain, reformulating and expanding the newly acquired Quik Wok system and restructuring the teetering 850-unit Godfather's Pizza.The company is attempting to put its marketing efforts back on track; the first step is its new "Herb" advertising program. The campaign is designed to promote Burger King's overall image.Yet many wonder whether the corporation's management resources are already overtaxed. While the company was expanding its operations in 1985, a series of shake-ups brought the departure of such key executives as Kyle Craig and left Burger King Corp. with some holes in its management structure.In a small bowl, stir together soy, sugar, and sherry; set aside. Heat wok or a 12-inch frying pan over medium-low heat. Add sesame seed and cook, stiring constantly, until lightly browned, 3 to 5 minutes. Scrape out of pan and set aside.Burger King's efforts to rectify the situation brought a new set of problems.The one positive impact of beefing up the Whopper, Burger King's highest-priced menu item, was an increase in sales of the sandwich to current customers.Return pan to high heat and add remaining oil and ginger, garlic, onion, and shrimp; stir-fry until shrimp are opaque in thickest part (cut to test), about 3 minutes. Add sauce; stir until it boils. Add salt to taste. Pour shrimp over cucumbers. Serves 3 or 4.--Teri Lee Getschman, Lafayette, Calif.The company also plans to enter markets previously unfeasible for any burger chain through the rollout of a new fleet of Burger King units-on-wheels.Yet even campbell has admitted that the future prospects for the burger chain are not encouraging. He recently told a group of analysts that Burger King's profitability would likely "slow" during the coming year.The program calls for the company to expand the Quik Wok system from eight to 1,000 units by the early 1990's; rebuild the troubled Godfather's Pizza into a worthy competitor of segment leaders Pizza Hut and Domino's; and transform its little-known Distron distribution company into a $5 billion operation by 1990.1/4 cup minced green onions"Burger King is trying to position itself as the quality fast-food chain," said Glovsky. "But I think it's slicing the market too thin. McDonald's and Wendy's are also quality operations.""There wasn't enough test marketing with the new Whopper, so it didn't give the bang everybody expected," said Herbert Slotnick, chairman of Carrols Corp., the largest franchisee in the Burger King system.Uncover, increase heat to high, and boil, stirring, until liquid has almost evaporated, 1 to 3 minutes. Pour beans out onto a platter and sprinkle with toasted sesame seed. Serves 4.1 clove garlic, pressed or mincedPlace a wok or 12-inch frying pan over high heat. When pan is hot, add 1 tablespoon oil, 1 tablespoon ginger, and cucumbers; stir-fry until cucumbers are tender-crisp, about 3 minutes. Pour onto a platter.The nation's second-largest foodservice chain also experienced year-to-year declines in real sales during September and August, Glovsky said.Meanwhile, Burger King is looking to expand to 4,590 units by next June--a 9% increase from the number a year ago--and to add 30 to 50 stores in Europe.Sauce (recipe follows)Stir-fry cucumbers to eat with shrimp.Salt"They're developing a portfolio of concepts to broaden their customer base as a whole," said Charles Glovsky, an analyst with Alex. Brown & Sons in Baltimore.But Campbell admitted that the initial results failed to meet expectations. "We would have like to have seen greater comparable sales on the new sandwich," he said. "In that sence there was some disappointment."In addition, the company's quest to become the W. R. Grace of fast food may bring the acquisition of other chains, most likely within the Mexican, seafood or chicken segments, said Jeffrey Campbell, chairman and chief executive.1 pound medium-size shrimp, shelled and deveinedTo make matters worse, Burger King followed up the rollout of the new Whopper with a $30 million supporting advertising blitz that, by all accounts, failed to maintain the momentum garnered in previous years through the "Battle of the Burgers" campaign.
"We have had more movement of Burger King in the last year than we like," Campbell said of the sweeping executive changes of the past year. He said the company plans to rectify the situation by recruiting "people from the outside who are in their 30's and on their way up."
Author: Peter Romeo, Marilyn Alva, Dave Zuckerman, Mark Schoifet
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