- Restaurant Brands International, owner of Burger King, began the renewal strategy in 2023 with an initial investment of $250 million.
- Now it announced another $300 million, in addition to another $150 million to improve customer experience and its technology.
- The acquisition of Carrols Restaurant Group accelerated the remodeling process.
The fast food chain Burger King has plans to revitalize its presence in some countries and one of the strategies is the renovation of its restaurants.
Specifically in the United States, the chain’s parent company announced this Tuesday, April 30, an extra investment of $300 million aimed at remodeling around 1,100 of its restaurants in that country as part of a consumer recovery effort.
Restaurant Brands International, owner of Burger King, began this renewal strategy in 2023, when it had announced a previous investment of $250 million to renew customer contact points, as well as to improve its technology and equipment.
In addition, an additional $150 million was allocated to invest in the mobile application and advertising campaigns.
Burger King Marketing Strategy
In January of this year, the parent company acquired Carrols Restaurant Group, Burger King’s largest American franchise, for $1 billion, with the aim of accelerating the remodeling process.
It is estimated that another $500 million will be allocated to upgrade 600 Carrols-owned locations.
With the investment announced this Tuesday, Restaurant Brands plans to spend around $2.2 billion to revitalize Burger King’s business in the United States.
The company aims for between 85% and 90% of its approximately 7,000 restaurants in that country to adopt a modern design by 2028.
Tom Curtis, president of Burger King in the United States, told CNBC that this investment is the first time in a long time that RBI has allocated such an amount of capital to co-invest with franchisees.
According to Curtis, preliminary results of the remodels have been positive, with an increase in sales at the renovated locations.
Burger King renewal plan
So far, around 100 Burger King locations have already been remodeled and updated.
These renovations follow the chain’s new “Sizzle” design, which includes services such as mobile order pickup and self-service kiosks.
These new features are expected to further boost sales of products like the Whopper and French fries.
However, the renewal initiative is not so simple. Burger King should have offered financial incentives to franchisees to participate in the remodeling process.
The thing is that renovations are expensive, especially with high interest rates, and because in most cases they require the temporary closure of the premises.
As in Restaurant Brands’ first phase of investment, franchisees who choose to remodel their restaurants will receive financial compensation once the change is complete.
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