Burger King Changes Strategy and Realizes 37% Revenue Increase

Burger King moves through a strategic transformation and earns big bucks while increasing customer satisfaction. The fast food giant that has 13,600 restaurants in 90 countries earning 66.8 million in the last quarter compared to $48.6 million in the same period last year (1). That is a 37% increase in revenue while their competitors have declined a few percentage points.

According to a statement by Burger King’s CEO Daniel Schwartz, “We completed our global refranchising initiative, fundamentally transforming our business model and putting restaurant operations into the hands of our experienced franchisees (2)”. They focused on creating greater brand awareness in the global economy, revamping some of their products, and opened 670 new restaurants in three international regions (3).

It is possible to see the changes in the factors of strategic revamping, healthier offerings, and global expansion

Strategic Revamping: Burger King’s movement from a centralized operation to a more decentralized one lessons operational overhead. As BK still owns the distribution process, products, brand, and operational approaches this allows them to maintain functional control while offering franchises a better opportunity to cater to local markets.

Healthier Offerings: BK is offering healthier food and this is differentiating them in the market. For example, they have adjusted their menus with satisfries that have less fat and calories than regular fries and obtain a market premium of 20 to 30 cents (4). By tapping into health trends they are expanding their customer base and overall public perception while reaping the financial rewards.  

Global Expansion:   Moving into additional markets affords an opportunity to create economies of scale through their current operations while developing their future customer base. Having more franchises allows BK to produce and sell more of their products and reduce their transactional costs. 

What is the result of their changes? So far it is helping the company gain stronger footing and expand its base. BK saw their net income move up 99% in 2013 with $234 million versus $118 million in 2012 (5). Companies that adjust to changing trends and formalize new strategies to thwart decline can reap large financial rewards for both themselves and their shareholders.

If you look at Burger King's Stock Price (BKW) you find that they have increased its value significantly since September of 2012. See Here.

Fine La Jolla Italian Dining at Piatti's Restaurant

Piatti Restaurant and Bar is a fine dining Italian restaurant that focuses on high quality food and a huge selection of barrel wine. They offer extras such as the vegetarian plates, gluten free food, and children’s menu. They are located in the unique La Jolla Shores neighborhood blocks from the beach. With tree covered patios and tablecloth dining they provide an excellent atmosphere for many occasions. 

Prices are affordable with Insalatas like Grilled Hearts of Romaine Wrapped with Parma Prosciutto, Drizzled Hazelnut Vinaigrette offered for  $10.95. Panini such as Roasted Leg of Lamb, Pesto, Arugula is on the menu for $14.25. If you are in the mood for starch, you might want to try Rolled Pasta Filled with Wild Mushrooms, Ricotta, Spinach, Porcini Mushroom Cream Sauce for $15.5.

Piattis started in 1987 and attempts to create a design that matches the needs of the community. Each servicecape is designed to bring a romantic Italian atmosphere  Low lighting, full bar, indoor/outdoor seating, and light music can be expected. A restaurant appears to have a large local following and caters to the trendy yet sophisticated crowd.

Piattis also engages in some philanthropic causes such as donating $100,000 to schools and charities every year. They run a Dine for Dollars program for every table that mentions the program. They also use at least 50% of their products from locally grown farms in order to reduce the carbon footprint. Recycling is a big deal for them. 

2182 Avenida De La Playa
La Jolla, Ca 92037

http://www.piatti.com/