Burger King: Promoting a Food Fight
BACKGROUND
Burger King History and success is a proof of excellent franchising and advertising strategies. The company starts in 1954 thanks to James McLamore and David Edgerton that have the idea of a fast-food store with always low prices. First in Miami, then this two entrepreneurial guys realize that advertising was the way to expand its business beyond Florida, with its first commercial on TV in 1958, when the television was in excellent popularity. With the product known by almost everyone, McLamore and Edgerton realize that franchising also would help them to expand their company, the franchising time starts ad 1950 because of the great possibility of expand with low inversion, and Burger King Starts expanding because of this.
The business was doing great, franchising gave the company the expand they needed, in 1967 the company was sold in $18 million dollars with 214 stores to the prepared-foods giant Pillsbury.
Franchising however give some problems to they new owners. The way McLamore and Edgerton handle and manage this was not the appropriate because with they low control of the franchisees around the country, the stores experience by the customer was different in each Burger King, the image the sense of the place was really different in each burger king, something that would not help to the brand and to the market share they already have got. For example, “Wealthy Louisianans Billy and Jimmy Trotter bought their first Burger King outlet in 1963. By 1969, they controlled almost two dozen Burger King Restaurants and went public under the name Self Service Restaurants Inc. In 1970, when the franchisees in control of the lucrative Chicago market decided to sell out, Billy Trotter flew to Chicago in a snowstorm to buy the territory for $8 million. By the time Pillsbury executives got to town the next day, they found they had been bested by their own franchisee” . This was something that happens because of the lack of control of the first owners with the
Burger King History and success is a proof of excellent franchising and advertising strategies. The company starts in 1954 thanks to James McLamore and David Edgerton that have the idea of a fast-food store with always low prices. First in Miami, then this two entrepreneurial guys realize that advertising was the way to expand its business beyond Florida, with its first commercial on TV in 1958, when the television was in excellent popularity. With the product known by almost everyone, McLamore and Edgerton realize that franchising also would help them to expand their company, the franchising time starts ad 1950 because of the great possibility of expand with low inversion, and Burger King Starts expanding because of this.
The business was doing great, franchising gave the company the expand they needed, in 1967 the company was sold in $18 million dollars with 214 stores to the prepared-foods giant Pillsbury.
Franchising however give some problems to they new owners. The way McLamore and Edgerton handle and manage this was not the appropriate because with they low control of the franchisees around the country, the stores experience by the customer was different in each Burger King, the image the sense of the place was really different in each burger king, something that would not help to the brand and to the market share they already have got. For example, “Wealthy Louisianans Billy and Jimmy Trotter bought their first Burger King outlet in 1963. By 1969, they controlled almost two dozen Burger King Restaurants and went public under the name Self Service Restaurants Inc. In 1970, when the franchisees in control of the lucrative Chicago market decided to sell out, Billy Trotter flew to Chicago in a snowstorm to buy the territory for $8 million. By the time Pillsbury executives got to town the next day, they found they had been bested by their own franchisee” . This was something that happens because of the lack of control of the first owners with the