Burger King Swot Analysis 2021

Burger King Swot Analysis 2021

The SWOT Analysis that is provided by Burger King analyses the brand through its strengths weak points, weaknesses, opportunities, and threats. When you look at Burger King SWOT Analysis, the strengths and weaknesses are internal factors, while potential and dangers are external aspects.

SWOT Analysis is a tried and tested management tool that allows brands like Burger King to benchmark their business and performance compared with their rivals. Burger King is one of the top companies in the food and beverages industry.

The table below provides that the Burger King SWOT (Strengths, Opportunities, Weaknesses, Threats) and the most prominent Burger King competitors and includes the market it is targeting segmentation, positioning, and the Unique Selling Proposition (USP).

SWOT analysis of Burger King (BK)

Burger King’s Strengths

Burger King Swot Analysis

  • Worldwide Presence Burger King has 18,838 restaurants spread across nearly 100 countries around the world. It’s the sixth-largest fast food restaurant chain worldwide. It serves more than the 10 million people who visit every day. The presence of the chain in all parts of the world is unquestionably an advantage.
  • Successful Strategies companies that use successful management strategies always come up with ways to improve their operations and remain up to date with current trends in the marketplace. After years of stagnation, Burger King appointed 32-year-old Daniel Schwartz as CEO to transform the chain into something exciting. The young and imaginative CEO was rejuvenated and turned the company around in just a few years.
  • A Strong Model of Franchising Today, 90 percent of Burger King is franchised with more than 15,000 locations operated by franchisees. To acquire a franchise from Burger King it is necessary to pay the franchise fee of $45,000 as well as a minimum amount of $317,100 as an initial investment. It’s the cheapest franchise.
  • A Wide Selection: Burger King offers an array of regional and international items on the menu that satisfy the needs of any traveler from home. From bacon-adorned buns to veggie-based Whoppers, grilled burgers, taro-filled pies, poutine-skinned fries drinks, desserts chicken items, and other items, the restaurant is renowned because of its extensive range of options.
  • Innovative Offers: Burger King always reinvents itself and comes up by introducing new and innovative options. It launched sandwich recipes made of plant matter known as the Impossible Whopper, which attracted new customers and assisted the company beat its 2 2nd quarter earnings expectations in the year 2019.
  • Innovative marketing Marketing that is effective should make the viewer shake to the core, and stay there for the duration. Burger King recently released a disgusting ad that shows a preservative-free hamburger deteriorating over the course of 34 days. The ad’s attention-grabbing nature ensures customers will always recognize the brand as being 100% natural.
  • More healthy than competitors: While Burger King isn’t the most healthful food option available but it has more nutritious options than competitors.

Burger King’s Weaknesses

Burger King Swot Analysis

  • Overdependence on the US Market: About 44.0 percent of Burger King’s outlets are located within the US and contributed $9.2 billion to its revenues. The company is exposed to nearly half of Burger King’s revenue to any issues that may arise in market competition in the US marketplace.
  • False advertisements: In the current world of health-conscious consumers, misleading advertisements regarding the ingredients used in food products undermine confidence and deter customers from buying. Burger King was recently reprimanded for suggesting that its Whopper was vegan-friendly, yet it prepared using eggs-based mayonnaise.
  • Over-Franchising Although Burger King’s franchises have been well managed, the rapid franchising can be detrimental to the viability of the business model. In the case of Subway, for instance, its dispute with its franchisees exposes the dangers in the future for Burger King.
  • Unstable: Any time the management and ownership of a business change ownership, the continuity of the business’s operations are interrupted. Burger King is a prime example. management of Burger King has changed ownership six times, with Restaurant Brands International taking ownership just a few years ago.
  • Negative publicity and controversy: From feeding its customers horsemeat, to providing vegans and non-vegans Whoppers and more, every controversy and negative publicity can damage the confidence of its customers even more.
  • low value: The majority of customers are looking for value for dollars. However, Burger King offers poor value from its least expensive to the most expensive Burger. This is the reason Burger King does not have a long-term client base and its customers have the option to choose to eat at other restaurants in the event that it is more practical.

Burger King’s Opportunities

Burger King Swot Analysis

  • Increase market presence: Being a market presence will ensure that every consumer has access to a store instead of another competitor. Burger King understands the opportunities created by the addition of more outlets. it plans to increase its number by 26,000 to 4000 outlets.
  • Expand Options based on Plants: Burger King’s earnings grew by 30 percent after the introduction of the healthier version of its sandwich, known as Impossible Whopper. The company could capitalize on the growing need for healthier food by introducing more plant-based alternatives to the menu.
  • Diversify Portfolio In lieu of focussing exclusively on its restaurant business, Burger King can diversify its portfolio beyond its sector. For example, it could start a grocery store instead of having to rely on other outlets to sell its Whoppers that are made in the plant.
  • Concentrate on Emerging Economy: From Asia to Africa and in the Middle East, and Latin America, emerging economies have untapped markets and the possibility of growing.
  • Burger King is asking to take orders from McDonald’s: In an effort to revive the restaurant business, Burger King has sent out tweets to its customers to make orders from McDonald’s.

    Here’s an official Tweet is taken from Burger King UK:

Burger King’s Threats

Burger King Swot Analysis

  • Global Recession Food is important, consumers tend to cut down on eating out during times of financial hardship. Already, a few Burger King franchisees have declared bankruptcy or are in receivership.
  • Stiff competition: From McDonald’s, KFC, Subway, Dominos, and many other chains, Burger King is facing tough competition in the United States and internationally. The company is involved in a fierce “Burger Wars,” and has the market’s share of profit as well as the sustainability of its business at stake.
  • Rising Health-Consciousness: The number of health-conscious consumers is increasing rapidly yet most of the foods offered by Burger King contain fats, animal products, and are categorized as unhealthy. If a competitor has healthier alternatives, customers who are health-conscious could be able to mass-migrate away from Burger King in an instant.
  • Strict Regulators: Governments across the world are struggling to pay the burden of managing and treating the lifestyle ailments that are caused by unhealthy foods. Authorities are able to enact rules that target fast-food chains such as Burger King to reduce unhealthy food choices.
  • The rising cost of farm products: Growing the population, coupled with the rapid growth of urbanization is increasing the demand for farm produce that is fresh and the supply is declining. The lack of beef that is fresh has resulted in higher costs and is threatening Burger King’s profit margins and long-term sustainability.
  • Global Pandemic: Every business that asks its customers to leave their homes to eat in public areas is susceptible to the spread of the disease. Certain Burger King franchisees have gone under, and others are struggling to earn enough to cover rent.

FAQ

What is the SWOT analysis of Burger King?

Burger King Brand Analysis

Burger King Weaknesses

Here are the flaws of this Burger King SWOT Analysis:

1. High calories and fat-rich food is not a good choice for health-conscious individuals.

 2. Intense competition means limited market share growth for Burger King

What are the strengths of Burger King?

  • Burger King is within the top 10 most recognizable fast-food restaurant brands around the world. 
  • Burger King is owned by an organization with solid financials. 
  • The number of locations continues to increase and its prices remain at a competitive level. 
  • The customers are always satisfied with the food and service.

How does Burger King attract customers?

A Burger King’s main driving factors is its menu that is simple. When it adds products to the menu they’re sourced from the ingredients that are already used. By using this method it is able to attract new customers, while not alienating existing customers.

Who are Burger King main competitors?

Burger King competitors include KFC, McDonald’s, Hardee’s, and Luby’s.

Is Burger King profitable?

The world’s largest fast-food chain Burger King generated approximately 1.6 billion U.S. dollars in revenue in the fiscal year. It’s a 10 percent reduction over the prior year’s sum in the amount of 1.78 billion U.S. dollars.

What makes Burger King so successful?

Burger King owes its success to a single factor: simple, as per the latest report from Citi Research. … Through making new menu items using the ingredients already in use like the Bacon Cheeseburger that is the ultimate, Burger King can entice customers without overwhelming employees and causing delays in service.

Burger King SWOT Analysis Conclusion:

Being a part of a developmentally and fast-food industry that is highly competitive, Burger King is doing fairly well in the race for market share and sales with the other top brands, like the huge McDonald’s. 

Burger King has plenty of opportunities for growth globally, with a particular focus on emerging markets, aided through alliances with local companies. 

However, emerging trends in healthy eating, veganism, and sustainable living could erode the sales of the company if Burger King does not respond to the changing times with innovative solutions.

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