Burger King
Overview
 
Burger King, often abbreviated as BK, is a global chain
Chain store
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...

 of hamburger
Hamburger
A hamburger is a sandwich consisting of a cooked patty of ground meat usually placed inside a sliced bread roll...

 fast food restaurants headquartered in unincorporated
Unincorporated area
In law, an unincorporated area is a region of land that is not a part of any municipality.To "incorporate" in this context means to form a municipal corporation, a city, town, or village with its own government. An unincorporated community is usually not subject to or taxed by a municipal government...

 Miami-Dade County
Miami-Dade County, Florida
Miami-Dade County is a county located in the southeastern part of the state of Florida. As of 2010 U.S. Census, the county had a population of 2,496,435, making it the most populous county in Florida and the eighth-most populous county in the United States...

, Florida, United States. The company began in 1953 as Insta-Burger King, a Jacksonville, Florida
Jacksonville, Florida
Jacksonville is the largest city in the U.S. state of Florida in terms of both population and land area, and the largest city by area in the contiguous United States. It is the county seat of Duval County, with which the city government consolidated in 1968...

-based restaurant chain. After Insta-Burger King ran into financial difficulties in 1955, its two Miami-based franchisees, David Edgerton
David Edgerton
David R. Edgerton is an American entrepreneur and the founder of the Burger King Corporation.On March 1, 1954, he opened the restaurant Insta Burger King in Miami, Florida, U.S. On June 1 of the same year, he met James McLamore and the two founded the Burger King Corporation.Edgerton graduated...

 and James McLamore
James McLamore
James Whitman McLamore was co-founder of the Burger King fast food franchise with David Edgerton. McLamore attended Northfield Mount Hermon School before matriculating at Cornell University....

, purchased the company and renamed it Burger King. Over the next half century the company would change hands four times, with its third set of owners, a partnership of TPG Capital, Bain Capital
Bain Capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...

, and Goldman Sachs Capital Partners
Goldman Sachs Capital Partners
Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally....

, taking it public in 2002.
Encyclopedia
Burger King, often abbreviated as BK, is a global chain
Chain store
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...

 of hamburger
Hamburger
A hamburger is a sandwich consisting of a cooked patty of ground meat usually placed inside a sliced bread roll...

 fast food restaurants headquartered in unincorporated
Unincorporated area
In law, an unincorporated area is a region of land that is not a part of any municipality.To "incorporate" in this context means to form a municipal corporation, a city, town, or village with its own government. An unincorporated community is usually not subject to or taxed by a municipal government...

 Miami-Dade County
Miami-Dade County, Florida
Miami-Dade County is a county located in the southeastern part of the state of Florida. As of 2010 U.S. Census, the county had a population of 2,496,435, making it the most populous county in Florida and the eighth-most populous county in the United States...

, Florida, United States. The company began in 1953 as Insta-Burger King, a Jacksonville, Florida
Jacksonville, Florida
Jacksonville is the largest city in the U.S. state of Florida in terms of both population and land area, and the largest city by area in the contiguous United States. It is the county seat of Duval County, with which the city government consolidated in 1968...

-based restaurant chain. After Insta-Burger King ran into financial difficulties in 1955, its two Miami-based franchisees, David Edgerton
David Edgerton
David R. Edgerton is an American entrepreneur and the founder of the Burger King Corporation.On March 1, 1954, he opened the restaurant Insta Burger King in Miami, Florida, U.S. On June 1 of the same year, he met James McLamore and the two founded the Burger King Corporation.Edgerton graduated...

 and James McLamore
James McLamore
James Whitman McLamore was co-founder of the Burger King fast food franchise with David Edgerton. McLamore attended Northfield Mount Hermon School before matriculating at Cornell University....

, purchased the company and renamed it Burger King. Over the next half century the company would change hands four times, with its third set of owners, a partnership of TPG Capital, Bain Capital
Bain Capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...

, and Goldman Sachs Capital Partners
Goldman Sachs Capital Partners
Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally....

, taking it public in 2002. In late 2010 3G Capital of Brazil acquired a majority stake in BK in a deal valued at .

At the end of fiscal year 2010, Burger King reported it had more than 12,200 outlets in 73 countries; of these, 66 percent are in the United States and 90 percent are privately owned and operated
Burger King franchises
The majority of the locations of international fast-food restaurant chain Burger King are privately owned, or franchised. While the majority of franchises own single locations, several have grown into major corporations in their own right...

. BK has historically used several variations of franchising
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

 to expand its operations. The manner in which the company licenses its franchisees varies depending on the region, with some regional franchises, known as master franchise
Master franchise
A master franchise is a person or entity who provides services to franchisees in a specified territory, typically a major market, geographical region or even one or more countries.Master franchising is a method that has been employed by most franchise systems...

s, responsible for selling franchise sub-licenses on the company's behalf. Burger King's relationship with its franchises has not always been harmonious. Occasional spats between the two have caused numerous issues, and in several instances the company's and its licensees' relations have degenerated into precedent-setting court cases.

The Burger King menu
Burger King products
When the predecessor of international fast food restaurant chain Burger King first opened in 1953, its menu predominantly consisted of hamburgers, french fries, soft drinks, milkshakes, and desserts...

 has evolved from a basic offering of burgers, french fries, sodas and milkshakes in 1954, to a larger, more diverse set of product offerings. In 1957, the Whopper was the first major addition to the menu; it has since become Burger King's signature product. Conversely, BK has introduced many products which failed to catch hold in the marketplace. Some of these failures in the US have seen success in foreign markets, where BK has also tailored its menu for regional tastes. After the purchase of the company in 2002, Burger King began to aggressively target the 18–34 male demographic with larger products that often carried correspondingly large amounts of unhealthy fats and trans-fats. This tactic would eventually come to hurt the company's financial underpinnings and cast a negative pall on its earnings.

The 1970s were the "Golden Age" of Burger King advertising
Burger King advertising
International fast food chain Burger King has employed varied advertising programs, both successful and unsuccessful, since its foundation in 1954. During the 1970s, output included a memorable jingle, the inspiration for its current mascot the Burger King and several well-known and parodied...

, but beginning in the early 1980s, the company's advertising began to lose focus; a series of less successful ad campaigns created by a procession of advertising agencies continued for the next two decades. In 2003, Burger King hired the Miami-based advertising agency of Crispin Porter + Bogusky
Crispin Porter + Bogusky
Crispin Porter + Bogusky , a member of publicly-traded MDC Partners, is an advertising agency that currently employs around 1,000 people. It was founded in 1965 by Sam Crispin.. Crispin then became partners with Chuck Porter and Alex Bogusky...

 (CP+B). CP+B completely reorganized Burger King's advertising with a series of new campaigns centered on a redesigned Burger King character accompanied with a new online presence. While highly successful, some of CP+B commercials have been derided for perceived sexism
Sexism
Sexism, also known as gender discrimination or sex discrimination, is the application of the belief or attitude that there are characteristics implicit to one's gender that indirectly affect one's abilities in unrelated areas...

 or cultural insensitivity.

History

The predecessor to what is now the international fast food restaurant chain Burger King was founded in 1953 in Jacksonville, Florida
Jacksonville, Florida
Jacksonville is the largest city in the U.S. state of Florida in terms of both population and land area, and the largest city by area in the contiguous United States. It is the county seat of Duval County, with which the city government consolidated in 1968...

, as Insta-Burger King. Inspired by the McDonald brothers' original store location in San Bernardino, California
San Bernardino, California
San Bernardino is a city located in the Riverside-San Bernardino metropolitan area , and serves as the county seat of San Bernardino County, California, United States...

, the founders and owners, Keith J. Kramer and his wife's uncle Matthew Burns, began searching for a concept to open a new restaurant around. After purchasing the rights to two pieces of equipment called "Insta" machines, the two opened their first stores around a cooking device known as the Insta-Broiler. The Insta-Broiler oven proved so successful at cooking burgers, they required all of their franchises to carry the device. After the original company began to falter in 1959, it was purchased by its Miami, Florida, franchisees James McLamore and David R. Edgerton. The two initiated a corporate restructuring of the chain; the first step was to rename the company Burger King. The duo ran the company as an independent entity for eight years, eventually expanding to over 250 locations in the United States, when they sold it to the Pillsbury Company in 1967.

Pillsbury's management tried several times to reorganize or restructure the restaurant chain in the late 1970s and early 1980s. The most prominent change came in 1978 when Burger King hired McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...

 executive Donald N. Smith to help revamp the company. In a plan called Operation Phoenix, Smith initiated a restructuring of corporate business practices at all levels of the company. Changes to the company included updated franchise agreements, a broadening of the menu, and new store designs to standardize the look and feel of the company. While these efforts were initially effective, many of them were eventually discarded, resulting in Burger King falling into a fiscal slump that damaged the financial performance of both Burger King and its parent. Poor operating performance and ineffectual leadership continued to bog the company down for many years, even after it was acquired in 1989 by the British entertainment conglomerate Grand Metropolitan
Grand Metropolitan
Grand Metropolitan plc is a former United Kingdom-based company operating hotels, holiday centres, entertainment centres, public houses and casinos...

 and its successor Diageo
Diageo
Diageo plc is a global alcoholic beverages company headquartered in London, United Kingdom. It is the world's largest producer of spirits and a major producer of beer and wine....

. Eventually, the institutional neglect of the brand by Diageo damaged the company to the point where major franchises were driven out of business and its total value was significantly decreased. Diageo eventually decided to divest itself of the money-losing chain and put the company up for sale in 2000.

The twenty-first century saw the company return to independence when it was purchased from Diageo by a group of investment firms led by TPG Capital for in 2002. The new owners rapidly moved to revitalize and reorganize the company, culminating with the company being taken public in 2006 with a highly successful initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...

. The firms' strategy for turning the chain around included a new advertising agency and new ad campaigns, a revamped menu strategy, a series of programs designed to revamp individual stores, and a new restaurant concept called the BK Whopper Bar
BK Whopper Bar
The BK Whopper Bar is limited service concept created by fast-food restaurant Burger King in 2009.- Format :The Whopper Bar is a concept from the company that upends its traditional fast food operations with a newer high end concept designed to compete with fast casual and casual dining restaurants...

. These changes successfully reenergized the company, leading to a score of profitable quarters. Yet, despite the successes of the new owners, the effects of the financial crisis of 2007–2010 weakened the company's financial outlooks while those of its immediate competitor McDonald's grew. The falling value of Burger King eventually lead to TPG and its partners divesting their interest in the chain in a sale to 3G Capital of Brazil. Analysts from financial firms UBS and Stifel Nicolaus
Stifel Nicolaus
Stifel Nicolaus and Company, Inc., incorporated in 1923, is the largest subsidiary of Stifel Financial Corporation and is a member of Securities Investor Protection Corporation . The parent company has several subsidiaries....

 agreed that 3G would have to invest heavily in the company to help reverse its fortunes. After the deal was completed, the company's stock was removed from the New York Stock Exchange, ending a four-year period as a public company. The delisting of its stock is designed to help the company repair its fundamental business structures and continue working to close the gap with McDonald's without having to worry about pleasing shareholders.

Structure

Burger King Holdings is the parent company of Burger King and is a Delaware corporation
Delaware corporation
The Delaware General Corporation Law is the statute governing corporate law in the state of Delaware. Delaware is well known as a corporate haven. Over 50% of U.S...

 formed on 23 July 2002, shortly before the acquisition of the company by the TPG lead group. A privately held company, it derives its income from several sources, including property rental and sales through company owned restaurants; however a substantial portion of its revenue is dependent on franchise fees. During the transitional period after the acquisition of the company by 3G Capital, Burger King's board of directors was co-chaired by John W. Chidsey, formerly CEO and chairman of the company, and Alexandre Behring, managing partner of 3G Capital. By April 2011 the new ownership completed the restructuring of Burger King's corporate management and Chidsey tendered his resignation, leaving Behring as new CEO and chair.

The company operates approximately 40 subsidiaries globally that oversee franchise operations, acquisitions and financial obligations such as pensions. One example of a subsidiary is Burger King Brands, Inc. which is responsible for the management of Burger King's intellectual properties. A wholly owned subsidiary established in 1990, Burger King Brands owns and manages all trademarks, copyrights and domain names used by the restaurants in the United States and Canada. It also responsible for providing marketing and related services to the parent company.

Burger King is headquartered in a nine-story office tower by Miami International Airport
Miami International Airport
Miami International Airport , also known as MIA and historically Wilcox Field, is the primary airport serving the South Florida area...

 in unincorporated
Unincorporated area
In law, an unincorporated area is a region of land that is not a part of any municipality.To "incorporate" in this context means to form a municipal corporation, a city, town, or village with its own government. An unincorporated community is usually not subject to or taxed by a municipal government...

 Miami-Dade County, Florida. Elaine Walker of the Miami Herald stated that the headquarters has a "Burger King" sign that drivers on Florida State Road 836 "can't miss." In addition the chain planned to build a neon sign on the roof to advertise the brand to passengers landing at the airport. On Monday 8 July 2002, 130 employees began working at the Burger King headquarters with the remainder moving in phases in August 2002. Prior to the moving to its current headquarters in 2002, Burger King had considered moving away from the Miami area; Miami-Dade County politicians and leaders lobbied against this, and Burger King stayed.

The company's previous headquarters were in a southern Dade County campus described by Walker as "sprawling" and "virtually hidden away." The former headquarters were located on Old Cutler Blvd in the Cutler
Cutler, Florida
Cutler was a census-designated place in Miami-Dade County, Florida at the time of the 2000 census. It has since been incorporated into the Village of Palmetto Bay...

 census-designated place
Census-designated place
A census-designated place is a concentration of population identified by the United States Census Bureau for statistical purposes. CDPs are delineated for each decennial census as the statistical counterparts of incorporated places such as cities, towns and villages...

. The former Burger King headquarters as of 2007 houses rental offices for several companies.

Burger King announced in 2008 that it planned to move its headquarters to a proposed office building in Coral Gables
Coral Gables, Florida
Coral Gables is a city in Miami-Dade County, Florida, southwest of Downtown Miami, in the United States. The city is home to the University of Miami....

. The company reversed its decision in 2007 and renewed the lease in its existing headquarters for 15 more years. Burger King had planned to consolidate employees working at an area near Miami International Airport and at a Dadeland Mall
Dadeland Mall
Dadeland Mall is a large enclosed shopping mall located in the Miami suburb of Kendall, Florida, in the Dadeland district. The mall, originally developed by the Joseph Meyerhoff Company of Baltimore, opened October 1, 1962 as a , open-air complex of sixty stores and services...

-area facility into the current headquarters by June of that year. Instead Bacardi USA leased the headquarter complex, a 15-story building.

International operations

While BK began its foray into locations outside of the continental United States in 1963 with a store in San Juan, Puerto Rico
San Juan, Puerto Rico
San Juan , officially Municipio de la Ciudad Capital San Juan Bautista , is the capital and most populous municipality in Puerto Rico, an unincorporated territory of the United States. As of the 2010 census, it had a population of 395,326 making it the 46th-largest city under the jurisdiction of...

, it did not have an international presence until several years later. Shortly after the acquisition of the chain by Pillsbury, it opened its first Canadian restaurant in Windsor, Ontario
Windsor, Ontario
Windsor is the southernmost city in Canada and is located in Southwestern Ontario at the western end of the heavily populated Quebec City – Windsor Corridor. It is within Essex County, Ontario, although administratively separated from the county government. Separated by the Detroit River, Windsor...

 in 1969. Other international locations followed soon after: Oceania in 1971 and Europe in 1975 with a restaurant in Madrid, Spain. Beginning in 1982, BK and its franchisees began operating stores in several East Asian countries, including Japan, Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...

, Singapore and South Korea. Due to high competition, all of the Japanese locations were closed in 2001; however, BK reentered the Japanese market in June 2007. BK's Central and South American operations began in Mexico in the late 1970s, and by the early 1980s in Caracas, Venezuela, Santiago, Chile
Santiago, Chile
Santiago , also known as Santiago de Chile, is the capital and largest city of Chile, and the center of its largest conurbation . It is located in the country's central valley, at an elevation of above mean sea level...

 and Buenos Aires, Argentina. While Burger King lags behind McDonald's in international locations by over 12,000 stores, it has managed to become the largest chain in several countries including Mexico and Spain. To assist in its international expansion, Burger King has established several subsidiaries to develop strategic partnerships and alliances to expand into new territories. In Europe, Burger King's subsidiary Burger King Europe GmbH is responsible for the licensing and development of BK franchises in that market, Africa and Western Asia. In Asia, the BK AsiaPac, Pte. Ltd. business unit handles franchising for East Asia, the Asian subcontinent and all Oceanic territories except Australia.

Australia is the only country in which Burger King does not operate under its own name. When the company set about establishing operations down under in 1971, it found that its business name was already trademarked by a takeaway food shop in Adelaide
Adelaide
Adelaide is the capital city of South Australia and the fifth-largest city in Australia. Adelaide has an estimated population of more than 1.2 million...

. As a result, Burger King provided the Australian franchisee, Jack Cowin
Jack Cowin
Jack Cowin is an Australian businessman who owns Hungry Jack's, the Burger King franchise in Australia and is the Executive Chairman of Competitive Foods Australia, one of the country's largest privately held businesses...

, with a list of possible alternative names derived from pre-existing trademarks already registered by Burger King and its then corporate parent Pillsbury, that could be used to name the Australian restaurants. Cowin selected the "Hungry Jack" brand name, one of Pillsbury's US pancake mixture products, and slightly changed the name to a possessive form by adding an apostrophe "s" forming the new name Hungry Jack's. After the expiration of the trademark in the late 1990s, Burger King unsuccessfully tried to introduce the brand to the continent. After losing a lawsuit filed against it by Hungry Jack's ownership, the company ceded the territory to its franchisee.
Over a 10-year period starting in 2008, Burger King predicted 80 percent of its market share would be driven by foreign expansion, particularly in the Asia-Pacific and Indian subcontinent
Indian subcontinent
The Indian subcontinent, also Indian Subcontinent, Indo-Pak Subcontinent or South Asian Subcontinent is a region of the Asian continent on the Indian tectonic plate from the Hindu Kush or Hindu Koh, Himalayas and including the Kuen Lun and Karakoram ranges, forming a land mass which extends...

 regional markets. While the TPG-lead group continued BK's international expansion by announcing plans to open new franchise locations in Eastern Europe, Africa and the Middle East, and Brazil, the company plans to focus on the three largest markets – India, China and Japan. The company plans to add over 250 stores in these Asian territories, as well as other places such as Macau
Macau
Macau , also spelled Macao , is, along with Hong Kong, one of the two special administrative regions of the People's Republic of China...

, by the end of 2012. Its expansion into the Indian market has the company at a competitive disadvantage with other fast food restaurant
Fast food restaurant
A fast food restaurant, also known as a Quick Service Restaurant or QSR within the industry itself, is a specific type of restaurant characterized both by its fast food cuisine and by minimal table service...

s such as KFC
KFC
KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global...

 because of the aversion of the country's large Hindu
Hindu
Hindu refers to an identity associated with the philosophical, religious and cultural systems that are indigenous to the Indian subcontinent. As used in the Constitution of India, the word "Hindu" is also attributed to all persons professing any Indian religion...

 majority to beef. BK hopes to use their non-beef products, such as their TenderCrisp
Tendercrisp
The TenderCrisp is a chicken sandwich sold by Burger King, an international fast-food restaurant chain. It is one of their "indulgent" products....

 and TenderGrill sandwiches, as well as other products to help them overcome this hurdle to expand in that country. 3G has reported that it will continue with the plans to grow globally, even ramping up the planned expansion to help increase their return on investment. It is expected that 3G Brazilian-based management connections in the region may help Burger King expand in Brazil and Latin America, where it has been having problems finding acceptable franchisees.

At the end of its 2010 fiscal year, Burger King is the second largest chain
Chain store
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...

 of hamburger
Hamburger
A hamburger is a sandwich consisting of a cooked patty of ground meat usually placed inside a sliced bread roll...

 fast food restaurants in terms of global locations, behind industry bellwether McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...

 (32,400 locations); it is the fourth largest fast food restaurant chain overall after Yum! Brands
Yum! Brands
Yum! Brands, Inc. or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwide....

 (37,000 locations), McDonald's, and Subway
Subway (restaurant)
Subway is an American restaurant franchise that primarily sells submarine sandwiches and salads. It is owned and operated by Doctor's Associates, Inc. . Subway is one of the fastest growing franchises in the world with 35,519 restaurants in 98 countries and territories as of October 25th, 2011...

 (32,000 locations).

Franchises

When Burger King Corporation began franchising in 1959, it used a regional model where franchisees purchased the right to open stores within a geographic region. These franchise
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

 agreements granted BKC very little oversight control of its franchisees and resulted in issues of product quality control, store image and design, and operational procedures.

During the 1970s, structural deficiencies in Burger King's franchise system became increasingly problematic for Pillsbury. A major example was the relationship between Burger King and Louisiana-based franchisee Chart House, Burger King's largest franchisee group at the time with over 350 locations in the United States. The company's owners, William and James Trotter, made several moves to take over or acquire Burger King during the 1970s, all of which were spurned by Pillsbury. After the failed attempts to acquire the company, the relationship between Chart House and Burger King soured and eventually devolved into in a lawsuit. Chart House eventually spun off its Burger King operations in the early 1980s into a holding company called DiversiFoods, which in turn was acquired by Pillsbury in 1984 and absorbed into Burger King's operations.

As part of the franchising reorganization segment of Operation Phoenix, Donald N. Smith initiated a restructuring of future franchising agreements in 1978. Under this new franchise agreement, new owners were disallowed from living more than one hour from their restaurants – preventing corporations from owning franchises. Franchisee were also now prohibited from operating other chains, preventing them from diverting funds away from their Burger King holdings. This new policy effectively limited the size of franchisees and prevented larger franchises from challenging Burger King Corporation as Chart House had. Smith also sought to have BKC be the primary owner of new locations and rent or lease the restaurants to its franchises. This policy would allow the company to take over the operations of failing stores or evict those owners who would not conform to the company guidelines and policies. By 1988, parent company Pillsbury had relaxed many of Smith's changes, scaled back on the construction of new locations and stalled growth. Neglect of Burger King by new owner Grand Met and its successor Diageo, further hurt the standing of the brand, causing significant financial damage to BK franchises and straining relations between the parties.
By 2001 and after nearly 18 years of stagnant growth, the state of its franchises was beginning to affect the value of the company. One of the franchises most heavily affected by the lack of growth was the nearly 400-store AmeriKing. By 2001, the company, which until this point had been struggling under a nearly debt load and been shedding stores across the US, was forced to enter Chapter 11
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...

 bankruptcy. The failure of AmeriKing deeply affected the value of Burger King, and put negotiations between Diaego and the TPC Capital-lead group on hold. The developments eventually forced Diaego to lower the total selling price of the chain by almost . After the sale, newly appointed CEO Bradley Blum initiated a program to help roughly 20 percent of its franchises, including its four largest, who were in financial distress, bankruptcy or had ceased operations altogether. Partnering with California-based Trinity Capital, LLC, the company established the Franchisee Financial Restructuring Initiative, a program to address the financial issues facing BK's financially distressed franchisees. The initiative was designed to assist franchisees in restructuring their businesses to meet financial obligations, focus on restaurant operational excellence, reinvest in their operations, and return to profitability.

Individual owners took advantage of the AmeriKing failure; one of BK's regional owners, Miami-based Al Cabrera, purchased 130 stores located primarily in the Chicago and the upper mid-west region, from the failed company for a price of , approximately 88 percent of their original value. The new company, which started out as Core Value Partners and eventually became Heartland Foods
Heartland Foods
Heartland Foods is one of the largest franchises of Burger King. The Downers Grove, Illinois-based company owns and operates over 225 restaurants in six US States.- History :...

, also purchased 120 additional stores from distressed owners and revamped them. The resulting purchases made Cabrera the largest minority franchisee of Burger King, and Heartland one of the company's top franchises. By 2006, the company was valued at over , and was sold to New York–based GSO Capital Partners
GSO Capital Partners
GSO Capital Partners is one of the largest credit-oriented alternative asset managers in the world and a major participant in the leveraged finance marketplace....

. Other purchasers included a three way group of NFL
National Football League
The National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...

 athletes Kevin Faulk
Kevin Faulk
Kevin Troy Faulk is an American football running back for the New England Patriots of the National Football League. He was drafted by the Patriots in the second round of the 1999 NFL Draft. He played college football at LSU.As of 2010, Faulk is the longest-tenured current member of the Patriots,...

, Marcus Allen
Marcus Allen
Marcus LeMarr Allen is a former American football player and, until recently, was affiliated with CBS as a game analyst. As a professional, Allen ran for 12,243 yards and caught 587 passes for 5,412 yards during his career for both the Los Angeles Raiders and the Kansas City Chiefs from 1982 to 1997...

 and Michael Strahan
Michael Strahan
Michael Anthony Strahan is a former National Football League defensive end who played his entire career for the New York Giants; a career where he set the record for the most sacks in a single season and won a Super Bowl in his final year. He is currently a football analyst on Fox NFL Sunday, and...

 who collectively purchased 17 stores in the cities of Norfolk
Norfolk, Virginia
Norfolk is an independent city in the Commonwealth of Virginia in the United States. With a population of 242,803 as of the 2010 Census, it is Virginia's second-largest city behind neighboring Virginia Beach....

 and Richmond, Virginia
Richmond, Virginia
Richmond is the capital of the Commonwealth of Virginia, in the United States. It is an independent city and not part of any county. Richmond is the center of the Richmond Metropolitan Statistical Area and the Greater Richmond area...

; and Cincinnati-based franchisee Dave Devoy, who purchased 32 AmeriKing stores. After investing in new decor, equipment and staff retraining, many of the formerly failing stores have shown growth approaching 20 percent.

Controversies and legal cases

Burger King has been involved in several legal disputes and cases, as both plaintiff and defendant, in the years since its founding in 1954. Disputes involving these many legal topics have affected almost every aspect of the company's operations. Depending on the ownership and executive staff at the time of these incidents, the company's responses to these challenges have ranged from a conciliatory dialog with its critics and litigants, to a more aggressive opposition with questionable tactics and negative consequences. The company's response to these various issues has drawn praise as well as accusations of political appeasement from different parties over the years.

Controversies and disputes have arisen with groups such as People for the Ethical Treatment of Animals
People for the Ethical Treatment of Animals
People for the Ethical Treatment of Animals is an American animal rights organization based in Norfolk, Virginia, and led by Ingrid Newkirk, its international president. A non-profit corporation with 300 employees and two million members and supporters, it claims to be the largest animal rights...

 (PETA), governmental and social agencies, and unions and trade groups over various topics. These situations have touched on legal and moral concepts such as animal rights
Animal rights
Animal rights, also known as animal liberation, is the idea that the most basic interests of non-human animals should be afforded the same consideration as the similar interests of human beings...

, corporate responsibility, ethics
Business ethics
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...

, and social justice
Social justice
Social justice generally refers to the idea of creating a society or institution that is based on the principles of equality and solidarity, that understands and values human rights, and that recognizes the dignity of every human being. The term and modern concept of "social justice" was coined by...

. While the majority of the disputes did not result in lawsuits, in many of the cases the situations raised legal questions, dealt with legal compliance, or resulted in legal remedies such as changes in contractual procedure or binding agreements between parties. The resolutions to these legal matters have often altered the way the company interacts and negotiates contracts with its suppliers and franchisees, or how it does business with the public.

Further controversies have occurred during the company's expansion in the Middle East. The opening of a Burger King location in Ma'aleh Adumim, an Israeli settlement in the Israeli-occupied Palestinian territories
Palestinian territories
The Palestinian territories comprise the West Bank and the Gaza Strip. Since the Palestinian Declaration of Independence in 1988, the region is today recognized by three-quarters of the world's countries as the State of Palestine or simply Palestine, although this status is not recognized by the...

, lead to a breach of contract
Breach of contract
Breach of contract is a legal cause of action in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party's performance....

 dispute between Burger King and it's Israeli franchise due to the hotly-contested international dispute over the legality of Israeli settlements in the Palestinian territories in accordance to international law. The controversy eventually erupted into a geopolitical dispute involving Muslim and Jewish groups on multiple continents over the application of, and adherence to, international law
International law
Public international law concerns the structure and conduct of sovereign states; analogous entities, such as the Holy See; and intergovernmental organizations. To a lesser degree, international law also may affect multinational corporations and individuals, an impact increasingly evolving beyond...

. The case eventually elicited reactions from the members of the 22-nation Arab League
Arab League
The Arab League , officially called the League of Arab States , is a regional organisation of Arab states in North and Northeast Africa, and Southwest Asia . It was formed in Cairo on 22 March 1945 with six members: Egypt, Iraq, Transjordan , Lebanon, Saudi Arabia, and Syria. Yemen joined as a...

. The Islamic countries within the League made a joint threat to the company of legal sanctions including the revocation of Burger King's business license
Business license
Business licenses are permits issued by government agencies that allow individuals or companies to conduct business within the government's geographical jurisdiction. It is the authorization to start a business issued by the local government....

s within the member states' territories.
A related issue involving members of the Islamic faith over the interpretation of the Muslim version of canon law
Canon law
Canon law is the body of laws & regulations made or adopted by ecclesiastical authority, for the government of the Christian organization and its members. It is the internal ecclesiastical law governing the Catholic Church , the Eastern and Oriental Orthodox churches, and the Anglican Communion of...

, Shariah, regarding the promotional artwork on a dessert package in the United Kingdom raised issues of cultural sensitivity, and, with the former example, posed a larger question about the lengths that companies must go to insure the smooth operation of their businesses in the communities they serve.

A trademark dispute involving the owners of the identically named Burger King in Mattoon, Illinois
Mattoon, Illinois
Mattoon is a city in Coles County, Illinois, United States. The population was 18,555 as of the 2010 census. It is a principal city of the Charleston–Mattoon Micropolitan Statistical Area.Mattoon was the site of the "Mad Gasser" attacks of the 1940s....

, led to a federal lawsuit. The case's outcome helped define the scope of the Lanham act
Lanham Act
The Lanham Act is a piece of legislation that contains the federal statutes of trademark law in the United States. The Act prohibits a number of activities, including trademark infringement, trademark dilution, and false advertising.-History:Named for Representative Fritz G...

 and trademark law in the United States. An existing trademark held by a shop of the same name in South Australia forced the company to change its name in Australia, while another state trademark in Texas forced the company to abandon its signature product, the Whopper
Whopper
The Whopper sandwich is the signature hamburger product sold by the international fast-food restaurant chain Burger King and its Australian franchise Hungry Jacks. Introduced in 1957, it has undergone several reformulations including resizing and bread changes...

, in several counties around San Antonio. Legal decisions from other suits have set contractual law precedents in regards to long-arm statutes, the limitations of franchise agreements
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

, and ethical business practices. Many of these decisions have helped define general business dealings that continue to shape the entire marketplace.

Charitable contributions and services

Burger King has two of its own in-house national charitable organizations and programs. One is the Have It Your Way Foundation, a US-based non-profit (501(c)(3)) corporation with multiple focuses on hunger alleviation, disease prevention and community education through scholarship programs at colleges in the US. The other charitable organization is the McLamore Foundation, also a non-profit, 501(c)(3) corporation that provides scholarships to students in the US and its territories.

In various regions across the United States, Burger King and its franchises have aligned themselves with several charitable organizations that support research and treatment of juvenile cancer. Each year, these coalitions hold a fund raising drive called "A Chance for Kids", in which Burger King restaurants sell lottery
Lottery
A lottery is a form of gambling which involves the drawing of lots for a prize.Lottery is outlawed by some governments, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of regulation of lottery by governments...

-style scratch cards for $1. Each card produces a winning prize that is usually a food or beverage product, but includes (rarer) items such as shopping sprees or trips. In the Northeast
Northeastern United States
The Northeastern United States is a region of the United States as defined by the United States Census Bureau.-Composition:The region comprises nine states: the New England states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont; and the Mid-Atlantic states of New...

, BK has affiliated itself with the Major League Baseball
Major League Baseball
Major League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...

 team the Boston Red Sox
Boston Red Sox
The Boston Red Sox are a professional baseball team based in Boston, Massachusetts, and a member of Major League Baseball’s American League Eastern Division. Founded in as one of the American League's eight charter franchises, the Red Sox's home ballpark has been Fenway Park since . The "Red Sox"...

 and its charitable foundation, the Jimmy Fund. The group runs the contest in Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...

. In the New York City area, it operates the contest in association with the Burger King Children's Charities of Metro New York and the New York Yankees
New York Yankees
The New York Yankees are a professional baseball team based in the The Bronx, New York. They compete in Major League Baseball in the American League's East Division...

. Funds raised in these areas go to support the Dana-Farber Cancer Institute
Dana-Farber Cancer Institute
Dana–Farber Cancer Institute is part of a Comprehensive Cancer Center designated by the National Cancer Institute. It is a major affiliate of Harvard Medical School and is located in the Longwood Medical Area in Boston, Massachusetts.-Overview:...

, located in Boston. In Nebraska, the company is affiliated with the Liz's Legacy Cancer Fund "BK Beat Cancer for Kids" program at the UNMC Eppley Cancer Center at the University of Nebraska Medical Center
University of Nebraska Medical Center
The University of Nebraska Medical Center is a public academic health sciences center located on 42nd and Emile Streets in Midtown Omaha, Nebraska. UNMC is the only public academic health science center in Nebraska.-Academics and rankings:...

 in Omaha
Omaha, Nebraska
Omaha is the largest city in the state of Nebraska, United States, and is the county seat of Douglas County. It is located in the Midwestern United States on the Missouri River, about 20 miles north of the mouth of the Platte River...

. In the Pittsburgh
Pittsburgh, Pennsylvania
Pittsburgh is the second-largest city in the US Commonwealth of Pennsylvania and the county seat of Allegheny County. Regionally, it anchors the largest urban area of Appalachia and the Ohio River Valley, and nationally, it is the 22nd-largest urban area in the United States...

 region, it funded the establishment of the Burger King Cancer Caring Center, a support organization for the families and friends of cancer patients.

Products

When the predecessor of Burger King first opened in Jacksonville in 1953, its menu consisted predominantly of basic hamburgers, french fries, soft drinks, milkshakes and desserts. After being acquired by its Miami, Florida, franchisees and renamed to its current moniker in 1954, BK began expanding the breadth of its menu by adding the Whopper
Whopper
The Whopper sandwich is the signature hamburger product sold by the international fast-food restaurant chain Burger King and its Australian franchise Hungry Jacks. Introduced in 1957, it has undergone several reformulations including resizing and bread changes...

 sandwich in 1957. This quarter-pound (4 oz (113.4 g)) hamburger was created by Burger King's new owners James McLamore
James McLamore
James Whitman McLamore was co-founder of the Burger King fast food franchise with David Edgerton. McLamore attended Northfield Mount Hermon School before matriculating at Cornell University....

 and David Edgerton
David Edgerton
David R. Edgerton is an American entrepreneur and the founder of the Burger King Corporation.On March 1, 1954, he opened the restaurant Insta Burger King in Miami, Florida, U.S. On June 1 of the same year, he met James McLamore and the two founded the Burger King Corporation.Edgerton graduated...

 as a way to differentiate BK from other burger outlets at the time. Since its inception, the Whopper has become synonymous with Burger King, and has become the focus of much of its advertising. The company even named its new kiosk-style restaurants Whopper Bars
BK Whopper Bar
The BK Whopper Bar is limited service concept created by fast-food restaurant Burger King in 2009.- Format :The Whopper Bar is a concept from the company that upends its traditional fast food operations with a newer high end concept designed to compete with fast casual and casual dining restaurants...

.

The menu component of Donald Smith's Operation Phoenix was initiated in 1978 and lead to the addition of the Burger King Specialty Sandwich line in 1979. The new product line significantly expanded the breadth of the BK menu with many non-hamburger sandwiches, including new chicken and fish offerings. The new Specialty Sandwich line was one of the first attempts to target a specific demographic, in this case adults 18–34, members of which would be willing to spend more on a higher quality product. One of Smith's other significant contributions to the menu was the addition of a breakfast product line, which until this time was not a market Burger King had entered. Besides the addition of the Croissan'Wich in 1983, the breakfast menu remained almost identical to the McDonald's offerings until a menu revamp in 1985. This expansion introduced BK's "Am Express" product line, which added new products such as French toast
French toast
French toast or Eggy Bread, is a food made with bread and eggs. It is a Christmas time dessert in Portugal and Brazil.Where French toast is served as a sweet dish, milk, sugar, or cinnamon are also commonly added before frying, and it may be then topped with sugar, butter, fruit, syrup, or other...

 sticks and mini-muffins
Muffin
A muffin is an American English name for a type of quick bread that is baked in small portions. Many forms are somewhat like small cakes or cupcakes in shape, although they usually are not as sweet as cupcakes and generally lack frosting. Savory varieties, such as cornbread muffins, also exist...

.

As the company expanded both inside and outside the US, it introduced localized versions
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...

 of its products that conform to regional tastes and cultural or religious beliefs. International variations add ingredients such as teriyaki
Teriyaki
Teriyaki is a cooking technique used in Japanese cuisine in which foods are broiled or grilled in a sweet soy sauce marinade...

 or beetroot
Beetroot
The beetroot, also known as the table beet, garden beet, red beet or informally simply as beet, is one of the many cultivated varieties of beets and arguably the most commonly encountered variety in North America, Central America and Britain.-Consumption:The usually deep-red roots of beetroot are...

 and fried egg
Fried egg
A fried egg is a food made from an egg fried whole with minimal accompaniment. They are traditionally eaten for breakfast in western countries, but may be eaten at other times of the day.-China:...

 to the Whopper; beer in Germany, Italy and Spain; and halal
Halal
Halal is a term designating any object or an action which is permissible to use or engage in, according to Islamic law. The term is used to designate food seen as permissible according to Islamic law...

 or kosher
Kosher foods
Kosher foods are those that conform to the regulations of the Jewish Halakhic law framework, kosher meaning fit or allowed to be eaten. A list of some kosher foods are found in the book of Leviticus 11:1-47. There are also certain kosher rules found there...

 products in the Middle East and Israel. To generate additional sales, BK will occasionally introduce limited time offers (LTOs) that are versions of its core products, or new products intended for either long or short term sales. Items such as the Texas Double Whopper and various sandwiches made with mushrooms and Swiss cheese
Swiss cheese
Swiss cheese is a generic name in North America for several related varieties of cheese which resemble the Swiss Emmental. Some types of Swiss cheese have a distinctive appearance, as the blocks of the cheese are riddled with holes known as "eyes". Swiss cheese has a piquant, but not very sharp,...

 have been rotated in and out of its menu for several years, while products such as its 1993 Meatloaf
Meatloaf
Meatloaf is a dish of ground meat formed into a loaf shape and baked or smoked. The loaf shape is formed by either cooking it in a loaf pan, or forming it by hand on a flat baking pan...

 Specialty Sandwich
Original Chicken Sandwich
The Original Chicken Sandwich is a chicken sandwich sold by the international fast-food restaurant chain Burger King. It is the "basic" chicken sandwich sold at Burger King...

 offering and accompanying limited table service, along with special dinner platters, failed to generate interest and were discontinued.

In order to appeal to as many demographic groups as possible and better compete with its competitor Wendy's
Wendy's
Wendy's is an international fast food chain restaurant founded by Dave Thomas on November 15, 1969, in Columbus, Ohio, United States. The company decided to move its headquarters to Dublin, Ohio, on January 29, 2006. It has been owned by Triarc since 2008...

, Burger King added a multi-tiered value menu
Value menu
A value menu is a group of menu items at a fast food restaurant that are designed to be the least expensive items available. In the US, the items are usually priced between $0.99 and $1.49. They are offered together at a lower price than they would cost individually. Value meals are a common...

 in 1993 with items priced at 99¢, $1.99 and $2.99 (USD). The additions, part of then CEO James Adamson's back to basics program also called Operation Phoenix, were an attempt to add not only a value menu, but also a line of value meals. The tiered menu was replaced with a more standard value menu in 1998, while the value meals were separated into their own menu segment. This value menu featured seven products: Whopper Jr., five-piece Chicken Tenders, a bacon cheeseburger, medium sized french fries, medium soft drink, medium onion rings, and small shake. In 2002 and 2006, BK revamped its value menu, adding and removing several different products such as chili
Chili con carne
Chili con carne is a spicy stew. The name of the dish derives from the Spanish chile con carne, "chili pepper with meat". Traditional versions are made, minimally, from chili peppers, garlic, onions, and cumin, along with chopped or ground beef. Beans and tomatoes are frequently included...

 and its Rodeo Cheeseburger. Many of these items have since been discontinued, modified or relegated to a regional menu option. To better appeal to a more adult palate and demographic, BK introduced several new products to its menu in 2003, including several new or revamped chicken products, a new salad line and its BK Joe brand of coffee. Some of the new products, including its Enormous Omelet Sandwich
Enormous Omelet Sandwich
The Enormous Omelet Sandwich is a breakfast sandwich sold by the fast-food restaurant chain Burger King. It is one of their late teen to young adult male oriented products...

 line and the BK Stacker line, brought negative attention due to the large portion size, and amounts of unhealthy fats and trans-fats. Many of these products feature higher quality ingredients like whole chicken breast, Angus beef, and natural cheeses such as cheddar
Cheddar cheese
Cheddar cheese is a relatively hard, yellow to off-white, and sometimes sharp-tasting cheese, produced in several countries around the world. It has its origins in the English village of Cheddar in Somerset....

 and pepper jack. Again, not all these products, such as the BK Baguette line, have met corporate sales expectations.
Like its menu, the equipment the company cooks its hamburgers with has also evolved as the company grew. The burgers have always been broiled mechanically; the original unit, called an Insta-Broiler, was one of two pieces of equipment the founders of Insta-Burger King purchased before opening their new restaurant. The Insta-Broiler worked by cooking 12 burger patties in a wire basket, allowing the patties to be cooked from both sides simultaneously. When McLamore and Edgerton took over the company, besides dropping the "Insta-" prefix, they switched to an improved unit, which they called a "Flame Broiler". Designed by the two and featuring stationary burners that cooked the meat on a moving chain, the unit broke down less often, while maintaining a similar cooking rate. The company would stay with that format for the next 40 years until Burger King began developing a variable speed broiler that could handle multiple items with different cooking rates and times. These new units began testing in 1999 and eventually evolved into the two models the company deployed system-wide in 2008–2009. Accompanying these new broilers was new food-holding equipment, accompanied with a computer-based product monitoring system for its cooked products. The monitoring system allows for more concise tracking of product quality, while giving the company and its franchisees a method to streamline costs by more precisely projecting sales and product usage.

Advertising

Since its foundation in 1954, Burger King has employed varied advertising programs, both successful and unsuccessful. During the 1970s, output included its Hold the pickles, hold the lettuce... jingle, the inspiration for its current mascot the Burger King
The Burger King
The Burger King was a character created as the advertising mascot for the international fast-food restaurant franchise Burger King who became famous in numerous television commercials, including the Burger King Kingdom. The first iteration of the King was part of Burger King sign at the first store...

, and several well known and parodied slogans such as "Have it your way" and "It takes two hands to handle a Whopper". Burger King introduced the first attack ad
Attack ad
In political campaigns, an attack ad is an advertisement whose message is meant as a personal attack against another candidate or political party...

 in the fast food industry with a pre-teen Sarah Michelle Gellar
Sarah Michelle Gellar
Sarah Michelle Prinze , known professionally by her birth name of Sarah Michelle Gellar , is an American actress, singer and executive producer...

 in 1981. The television spot, which claimed BK burgers were larger and better tasting than competitor McDonald's, so enraged executives at McDonald's parent company that they sued all parties involved. Starting in the early 1980s and running through approximately 2001, BK engaged a series of ad agencies
Advertising agency
An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services...

 that produced many unsuccessful slogans and programs, including its biggest advertising flop "Where's Herb?
Where's Herb?
Where's Herb? was an advertising campaign for the fast food chain Burger King in 1985 and 1986. The television commercials featured a fictional character named Herb, who was described as never having eaten a Burger King burger in his life. They called on fans to visit their local Burger King in the...

".

Burger King was a pioneer in the advertising practice known as "product tie-in", with a successful partnership with George Lucas
George Lucas
George Walton Lucas, Jr. is an American film producer, screenwriter, and director, and entrepreneur. He is the founder, chairman and chief executive of Lucasfilm. He is best known as the creator of the space opera franchise Star Wars and the archaeologist-adventurer character Indiana Jones...

' Lucasfilm
Lucasfilm
Lucasfilm Limited is an American film production company founded by George Lucas in 1971, based in San Francisco, California. Lucas is the company's current chairman and CEO, and Micheline Chau is the president and COO....

, Ltd., to promote the 1977 film Star Wars
Star Wars Episode IV: A New Hope
Star Wars Episode IV: A New Hope, originally released as Star Wars, is a 1977 American epic space opera film, written and directed by George Lucas. It is the first of six films released in the Star Wars saga: two subsequent films complete the original trilogy, while a prequel trilogy completes the...

in which BK sold a set of glasses featuring the main characters from the movie. This promotion was one of the first in the fast food
Fast food restaurant
A fast food restaurant, also known as a Quick Service Restaurant or QSR within the industry itself, is a specific type of restaurant characterized both by its fast food cuisine and by minimal table service...

 industry and set the pattern that continues to the present. BK's early success in the field was overshadowed by a 1982 deal between McDonald's and the Walt Disney Company to promote Disney's animated films beginning in the mid 1980s and running through the early 1990s. In 1994, Disney switched from McDonald's to Burger King, signing a 10-movie promotional contract which would include such top 10 films as Aladdin (1992), Beauty and the Beast
Beauty and the Beast (1991 film)
Beauty and the Beast is a 1991 American animated fantasy film produced by Walt Disney Animation Studios and distributed by Walt Disney Pictures. The thirtieth film in the Walt Disney Animated Classics series and the third film of the Disney Renaissance period...

(1991), The Lion King
The Lion King
The Lion King is a 1994 American animated film produced by Walt Disney Feature Animation and released by Walt Disney Pictures. It is the 32nd feature in the Walt Disney Animated Classics series...

(1994), and Toy Story
Toy Story
Toy Story is a 1995 American computer-animated film released by Walt Disney Pictures. It is Pixar's first feature film as well as the first ever feature film to be made entirely with CGI. The film was directed by John Lasseter and featuring the voices of Tom Hanks and Tim Allen...

(1995). A partnership in association with the Pokémon
Pokémon
is a media franchise published and owned by the video game company Nintendo and created by Satoshi Tajiri in 1996. Originally released as a pair of interlinkable Game Boy role-playing video games developed by Game Freak, Pokémon has since become the second most successful and lucrative video...

 franchise at the height of its popularity in 1999 was tremendously successful for the company, with many locations rapidly selling out of the toys and the replacements.

Shortly after the acquisition of Burger King by TPG Capital, L.P. in 2002, its newly hired CEO Bradley (Brad) Blum
Brad Blum
Brad Blum was the CEO of Burger King from December 2002 to July 2, 2004. He joined the company from Darden Restaurants where he had headed the Olive Garden unit, but left after only 18 months citing strategic differences with Burger King's board. Blum's successor, Greg Brenneman, was appointed on...

 set about turning around the fortunes of the company by initiating an overhaul of its flailing advertising programs. One of the first moves by the company was to reinstate its famous "Have it your way" slogan as the corporate motto. BK handed the effort off to its new advertising agency, Miami-based Crispin Porter + Bogusky
Crispin Porter + Bogusky
Crispin Porter + Bogusky , a member of publicly-traded MDC Partners, is an advertising agency that currently employs around 1,000 people. It was founded in 1965 by Sam Crispin.. Crispin then became partners with Chuck Porter and Alex Bogusky...

 (abbreviated as CP+B). CP+B was known for having a hip, subversive tack when creating campaigns for its clients, exactly what BK was looking for. One of CP+B strategies was to revive the Burger King character used during BK's 1970s/1980s Burger King Kingdom
Burger King Kingdom
The Burger King Kingdom is a fantasy world associated with Burger King.-History:The Burger King Kingdom was the name of Burger King's answer to McDonaldland during the mid-1970s...

 children's advertising campaign as a caricature
Caricature
A caricature is a portrait that exaggerates or distorts the essence of a person or thing to create an easily identifiable visual likeness. In literature, a caricature is a description of a person using exaggeration of some characteristics and oversimplification of others.Caricatures can be...

d variation, now simply called "the King". The farcical nature of "the Burger King" centered advertisements inspired an internet meme
Internet meme
The term Internet meme is used to describe a concept that spreads via the Internet. The term is a reference to the concept of memes, although the latter concept refers to a much broader category of cultural information.-Description:...

 where the King is edited
Photo manipulation
Photo manipulation is the application of image editing techniques to photographs in order to create an illusion or deception , through analog or digital means.- Types of digital photo manipulation :...

 into unusual situations that are either comical or menacing, many times followed with the phrase "Where is your God now?"

Additionally, CP+B created a series of new characters like the Subservient Chicken
The Subservient Chicken
The Subservient Chicken is an advertising program created to promote international fast food restaurant chain Burger King's TenderCrisp chicken sandwich and their "Have it Your Way" campaign...

 and the faux nu metal
Nu metal
Nu metal is a subgenre of heavy metal. It is a fusion genre which combines elements of heavy metal with other genres, including grunge and hip hop...

 band Coq Roq
Coq Roq
Coq Roq, also typeset as COQ ROQ, and pronounced "Cock Rock", was an advertising program created in late 2004 to promote international fast food restaurant chain Burger King's chicken product, BK Chicken Fries...

, featured in a series of viral
Viral marketing
Viral marketing, viral advertising, or marketing buzz are buzzwords referring to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives through self-replicating viral processes, analogous to the spread of viruses...

 web-based advertisements on sites such as MySpace and various BK corporate pages, to compliment various television and print promotional campaigns. One of the more successful promotions that CP+B devised was the creation of a series of three advergames
Advergaming
Advergaming is the practice of using video games to advertise a product, organization or viewpoint. The term "advergames" was coined in January 2000 by Anthony Giallourakis, and later mentioned by Wireds "Jargon Watch" column in 2001...

 for the Xbox 360
Xbox 360
The Xbox 360 is the second video game console produced by Microsoft and the successor to the Xbox. The Xbox 360 competes with Sony's PlayStation 3 and Nintendo's Wii as part of the seventh generation of video game consoles...

. Created by UK based Blitz Games
Blitz Games
Blitz Games is a division of Blitz Games Studios and is responsible for producing its family titles, which are often licensed games based on well known IP. It is located in Warwickshire, England...

 and featuring company celebrity spokesman
Spokesman
A spokesperson or spokesman or spokeswoman is someone engaged or elected to speak on behalf of others.In the present media-sensitive world, many organizations are increasingly likely to employ professionals who have received formal training in journalism, communications, public relations and...

 Brooke Burke
Brooke Burke
Brooke Burke Charvet , better known by her maiden name, Brooke Burke, is an actress, dancer, model and television personality...

, the games sold more than 3.2 million copies, placing them as one of the top selling games along with another Xbox 360 hit, Gears of War
Gears of War
Gears of War is a military science fiction third-person shooter video game developed by Epic Games and published by Microsoft Game Studios...

. These ad campaigns, coupled with other new promotions and a series of new product
Burger King products
When the predecessor of international fast food restaurant chain Burger King first opened in 1953, its menu predominantly consisted of hamburgers, french fries, soft drinks, milkshakes, and desserts...

 introductions, drew positive and negative attention to BK, and helped TPG and its partners realize about in dividends.

Burger King broke relations with its lead advertising creative firm, MDC Partners
MDC Partners
MDC Partners Inc. is a holding company based in Toronto, Canada and New York. It was founded by Miles Nadal who is also the CEO of MDC Partners.The company is primarily known for its holdings in advertising companies, especially Crispin Porter and Bogusky....

' CP&B in 2011 after having done business for more than seven years.

On August 19, 2011, the company announced that it would no longer retain "The Burger King
The Burger King
The Burger King was a character created as the advertising mascot for the international fast-food restaurant franchise Burger King who became famous in numerous television commercials, including the Burger King Kingdom. The first iteration of the King was part of Burger King sign at the first store...

" in advertising.

See also

  • McDonald's
    McDonald's
    McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...

     – Largest competitor in fast food hamburger restaurants in terms of number of locations. Second largest competitor in fast food restaurants.
  • Subway
    Subway (restaurant)
    Subway is an American restaurant franchise that primarily sells submarine sandwiches and salads. It is owned and operated by Doctor's Associates, Inc. . Subway is one of the fastest growing franchises in the world with 35,519 restaurants in 98 countries and territories as of October 25th, 2011...

     – Largest single brand competitor in fast food restaurants in terms of number of locations.
  • Wendy's
    Wendy's
    Wendy's is an international fast food chain restaurant founded by Dave Thomas on November 15, 1969, in Columbus, Ohio, United States. The company decided to move its headquarters to Dublin, Ohio, on January 29, 2006. It has been owned by Triarc since 2008...

     – Third largest competitor in fast food hamburger restaurants in terms of number of locations.
  • Yum! Brands
    Yum! Brands
    Yum! Brands, Inc. or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwide....

     – Largest company in fast food restaurants in terms of number of locations.
  • Drive-through
    Drive-through
    A drive-through, or drive-thru, is a type of service provided by a business that allows customers to purchase products without leaving their cars. The format was first pioneered in the United States in the 1930s but has since spread to other countries. The first recorded use of a bank using a drive...


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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