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INTRODUCTION & HISTORY 1.1 In 1955, Kroc knew that the key to success was through rapid expansion; thus, thebest way to achieve this was through offering franchises. Today, over 70 percent of McDonald's Restaurants are franchises. In 1986, the first franchised McDonald's opened inthe United Kingdom. Now, there are over 1,150 restaurants, employing more than 49,000people, of which 34 percent are operated by franchisees. Moreover, there are over 30,000these Introduction: When the Dick and Mac McDonald opened their first restaurant in San Bernardino,California in 1948, they never could have imagined the extraordinary growth their companywould experience. From modest beginnings, they found a winning formula selling highquality products quickly and low-cost. It was not until 1955 when Ray Kroc, a salesman fromChicago, became involved in the business that McDonald's really began to flourish. Krocrealized the same successful McDonald's formula could be exploited throughout the UnitedStates and beyond with the use of franchising. A franchise is an agreement or license to sell acompany's products exclusively in a particular area, or to operate a business that carries thatcompany's name.restaurantsin more than 119 countries, serving over 47 million customers around theworld. In 2000 alone, McDonald's served over 16 billion customers. For perspective, thatnumber is equivalent to providing a lunch and dinner for every man, woman, and child in theworld! McDonald's global sales were over $40 billion, making it by far the largest foodservice company in the world.Now McDonald’s Corporation USA is the ninth most valuable brand in the world. InOctober 1996, McDonald’s opened its first Indian outlet in Vasant Vihar, an affluentresidential colony in India’s capital, New Delhi. As of November 2004, McDonald’s hasopened a total of 58 restaurants, mostly in

the northern and western part of India. WhileMcDonald’s opened 34 restaurants in five years (by 2001), 58 restaurants in eight years (by2004), it is now planning to add more than 90 new restaurants in the next coming years.Although the initial scenes of crowds lining up for days outside the McDonald’s restaurantsin Delhi and Mumbai are no longer seen, Indian consumer response to McDonald’s productsstill remains very strong.McDonald's India is a joint-venturecompany managed by Indians. McDonald’sIndia, a subsidiary of McDonald’s USA, hasexpanded its presence in India via 2 jointventure companies – Connaught Plazarestaurants and Hardcastle restaurants.McDonald’s (India) has a 50 per cent equitystake each in both joint venture companies.Connaught Plaza restaurants managesoperations and expansions across NorthIndia (Delhi, Jaipur and Punjab) – led by Vikram Bakshi – and Hardcastle restaurants, whichis headed by Amit Jatia, manages operations and expansions across Western India (Mumbai,Pune, and Gujarat). The growth of McDonald’s in India is not as rapid as in other countries. How didMcDonald’s do it? How did a hamburger chain become so prominent in a cultural zonedominated by non-beef, non-pork, vegetarian, and regional foods such as chola bhatura,kababs, bhaji, idli, samosa, dosa, vada, sambar, bhelpuri, and rice? The answer to thisquestion lies in McDonald’s carefully planned entry and expansion strategy in accordancewith India’s changing political, economic, and cultural landscape in the 1990s.Six years prior to the opening of the first McDonald's restaurant in India, McDonald'sand its international supplier partners worked together with local Indian Companies todevelop products that meet McDonald's rigorous quality standards. Part of this developmentinvolves the transfer of state-of-the-art food processing technology, which has enabled Indianbusinesses to grow by improving their ability to compete in today’s international markets.McDonald's constructs its restaurants using local architects, contractors, labour and - wherepossible – local materials. McDonald's hires local personnel for all positions within therestaurants and contributes a portion of its success to communities in the form of municipaltaxes and reinvestment.The above aspects of McDonald’s do not get covered and highlighted by the newshungry press. But when the false news of using beef allow in the French fries hit the market,the press did not leave a chance to exaggerate it. Despite the fact that right form thebeginning; no beef ingredients have been used in any of the

products in India.The marketing agency of McDonald’s, Mudra comes to its rescue in such times. Theadvertisements created by Mudra are a rage all over the nation, especially amongst thechildren. Who can forget the little kid who gets nervous in the school competition, butbecomes happy again when his father takes him to McDonald’s?McDonald’s India has tried not to leave any stone un-turned in its objective to satisfythe Indian customer. But in Amit Jatia’s words, “Customers are generally not forgiving.” According to the survey conducted, customers demand low prices, more seating space, morevariety, home delivery, and the list is endless.The fundamental secret to McDonald’s success is the way it achieves uniformity andallegiance to an operating regimen with proper marketing strategy. McDonald’s India has toadhere to many rules and regulations laid down by the parent company, and it still has tocater to the Indian customer and his needs. McDonald’s India is a case study on how to mixconformity with creativity. 2. PHILOSOPHY & VISION Every company has a Vision or Mission Statement. A vision statement should beshort, clear, vivid, inspiring and concise without using jargon, complicated words orconcepts. It represents the corporation guiding principles. It subtly indicates the businessesthe firm will pursue and the customer needs it will seek to satisfy. The vision statement alsoallows the employees to clearly adhere to the standards set up by the business unit and work in as per the guidelines framed by the company. 2.1 McDonald’s Vision Statement –"McDonald's vision is to be the world's best quick service restaurant experience. Beingthe best means providing outstanding quality, service, cleanliness, and value, so that wemake every customer in every restaurant smile." The McDonald's philosophy of Quality, Service, Cleanliness and Value (QSC&V) isthe guiding force behind its service to the customers. McDonald’s India serves only thehighest quality products. All McDonald’s suppliers adhere to Indian Government regulationson food, health and hygiene while continuously maintaining their own recognized standards.All McDonald’s products are prepared using the most current state-of-the-art cookingequipment to ensure quality and safety. At McDonald’s, the customer always comes first.McDonald’s India provides fast friendly service- the hallmark of McDonald’s that sets itsrestaurants apart from others. McDonald’s restaurants provide a clean,

weaknesses. 1 fast-food company by sales. This is achieved through McDonald’s stringentcleaning standards. To meet the needsof the key market it is important to analyse the internal marketing strengths of theorganisation. 4009 million). It continually innovates to retaincustomers in the business.000 restaurants serving burgers and fries in almost 120 countries. SWOT ANALYSIS 3.comfortableenvironment especially suited for families. 5. • McDonalds has built up huge brand equity.with more than 31. Once the strengths and weaknesses aredetermined. they feed into marketing objectives. SWOT analysis is a tool for auditing an organization and itsenvironment. McDonald’s does not sacrifice quality for value – rather McDonald’sleverages economies to minimize costs while maximizing value to customers. It is the first stage of planning and helps businesses to focus on key issues. Strengths and weaknesses must be identified. This isknown as SWOT analysis. • Good innovation and product development.Sales.6% sales growth. they are combined with the opportunities and threats in the market place.Once key issues have been identified. The maineffort of McDonalds’s service is to make customer the whole sole beneficiary through itsstringent standards maintained all over the world 4 3. It is the No. • . 2007 (11.McDonald’s menu is priced at a value that the largest segment of the Indianconsumers can afford. so that a marketing strategy whichis right for the business can be decided upon. opportunities. carefully adhered to.1 SWOT Analysis – Strengths SWOT stands for strengths. and threats.

• Loyal staff and strong management team. • Break-even sales can be generated after operating for certain number of years only.The McDonalds brand offers consumers choice. reasonable value and great service • Large amounts of investment have gone into supporting its franchise network. • Locations of outlets are sometimes not to closer to storage centres resulting in loss of quality. • Quality issues across the franchise network. Product line heavily focused towards hot food and burgers. • Advertisements and promotion to market the McDonalds’ as a brand carves a strongimage on customer’s mind. . • Seasonal. Weaknesses • Core product line out of line with the trend towards healthier lifestyles for adults andchildren. 75% of stores are franchises.

• Continued focus on corporate social responsibility. reducing the impact on theenvironment and community linkages. • Expansion into emerging markets of cities present in India.Opportunities Joint ventures with retailers (e. supermarkets). • Consolidation of retailers likely. It could identify likely customers (based on modelling and profiles of shoppers) and prevent brand switching. Its moveinto hot baguettes and healthier snacks (fruit) has supported its new positioning.by innovation within healthier lifestyle foods. • Use of CRM. database marketing to more accurately market to its consumer targetgroups. so better locations for franchisees. • . to encourage customers who visit coffeeshops into McDonalds. • Respond to social changes .g. 5 • Strengthen its value proposition and offering. • Installing children’s play-parks and focus on educating consumers about health.fitness.

Threats • Social changes . as householdbudgets tighten reducing spend and number of visitors. subway. 5 a dayfruit and vegetables. supermarkets. • Pressure groups .environmental.Focus on middle-class income group customers with low-priced quality goods willenhance the profit margin. M&S.Government. • . • Recession or down turn in economy may affect the retailer sales.g. • Senior Citizens have been totally deprived of marketing strategy adopted byMcDonald’s. • Competitive pressures on the high street as new entrants offering value and greaterproduct ranges and healthier lifestyles products. consumer groups encouraging balanced meals. E. • Focus by consumers on nutrition and healthier lifestyles. The burgers and eatables are more Indianized so that senior citizens findit familiar but the introduction of more milky beverages would attract more seniorcitizens and kids.

• Transform itself into a high-volume. • Addition of franchisees as current 75% income generated is from franchisee centersaffiliated to McDonald’s. protectionists. sales. MARKETING OBJECTIVES A Marketing plan must be created to meet clear objectives. whichMcDonald's uses as milestones along the way. Once marketing objectives are set the next stage is to define how they willbe achieved. mass-market brand with compounded annualgrowth at around 30 per cent to 35 per cent in the next few years. and goals. and anti-globalization protestors 4. animal rightsactivists.400 crore in the next two years to expand its operations.Long-term objectives are broken down into shorterterm measurable targets. reaching the target audience andcreating awareness in the marketplace. Itexplains what marketing actions and resources will be used and how they will work together. The marketing strategy is the statement of how objectives will be delivered. Results can be analyzed regularly to seewhether objectives are being met. • McDonald’s plans to open as many as 140 restaurants throughout India this year. • . Objectives guidemarketing actions and are used to measure how well a plan is working.These can be related to market share.focusing on drive-through outlets.It gives flexibility. it continues to facecontinue opposition from religious fundamentalists. The objectives communicate what marketers want toachieve. • Investment of more than Rs. This type of feedback allows the company to change plans.Since McDonald’s is a symbol of American cultural imperialism.

Itexplains what marketing actions and resources will be used and how they will work together. Results can be analyzed regularly to seewhether objectives are being met. To build a new generation who will staywith the brand and then emerge as a long-term player. Objectives guidemarketing actions and are used to measure how well a plan is working. Once marketing objectives are set the next stage is to define how they willbe achieved. • Introduce new innovative menus by development of new products. which cater topeople's needs by keeping Indian tastes in mind and to provide greater choice whilstensuring that the products meet the requirements of a balanced diet. sales. The objectives communicate what marketers want toachieve. • Target on customers between age-groups 24-38 with children’s to position itself as afamily restaurant and the ideal place for kids and teenagers.These can be related to market share. The marketing strategy is the statement of how objectives will be delivered.Long-term objectives are broken down into shorter-term measurable targets. understand the market and thenmultiply by opening up more outlets in these cities rather than spreading to too manycities at a time • Increase the number of customers turning up at its restaurants around the country byproviding the same service and quality by achieving 100% customer satisfaction. • . This type of feedback allows the company to change plans. so that the crowds keep pouring through the doors. MARKETING OBJECTIVES A Marketing plan must be created to meet clear objectives. whichMcDonald's uses as milestones along the way. and goals. The plan is to enter a new city.Moving out of the metros and concentrate its efforts on other mid-sized cities inproviding service.It gives flexibility. reaching the target audience andcreating awareness in the marketplace. • Increase brand loyalty among customers.

To build a new generation who will staywith the brand and then emerge as a long-term player. • Introduce new innovative menus by development of new products. • Transform itself into a high-volume.focusing on drive-through outlets. • Target on customers between age-groups 24-38 with children’s to position itself as afamily restaurant and the ideal place for kids and teenagers. • Addition of franchisees as current 75% income generated is from franchisee centersaffiliated to McDonald’s. The plan is to enter a new city. • Investment of more than Rs.McDonald’s plans to open as many as 140 restaurants throughout India this year. • Moving out of the metros and concentrate its efforts on other mid-sized cities inproviding service. understand the market and then multiply by opening up more outlets in these cities rather than spreading to too manycities at a time • Increase the number of customers turning up at its restaurants around the country byproviding the same service and quality by achieving 100% customer satisfaction. • Increase brand loyalty among customers. which cater topeople's needs by keeping Indian tastes in mind and to provide greater choice . mass-market brand with compounded annualgrowth at around 30 per cent to 35 per cent in the next few years.400 crore in the next two years to expand its operations.

was selected to own and manage McDonald’s restaurants in thewestern region. Vikram Bakshi hasextensive background in real estate development in Delhi. 7 5. it was theirbusiness plan emphasizing India-centric management strategies and their easy access tobureaucracy so critical to effective government relations building.however. McDonald‘s was faced with two challenges of the Indian market:(1) How to avoid hurting religious sensibilities of Indian consumers. hasa chemicals and textile business background in Mumbai. beef and pork havebeen a “complete no-no” from the start. so that thecrowds keep pouring through the doors. Amit Jatia’s company. In Delhi. Since India’s majority of Hindus (80% of India’s population)revere cows as sacred and 150 million of Indian Muslims do not eat pork.14 otheritems—such as the tantalizing McAloo Tikki Burger (breaded .McDonald’s decided to set up two joint ventures on a 50:50 basis with two localentrepreneurs in Mumbai and Delhi.a Emphasis on Local Management: McDonald’s has given the adage of “think global. McDonald’s introduced a muttonbased“Maharaja Mac” in India. as opposed to its flagship beef-based Big Mac elsewhere. Rather. It was not their backgrounds. while Amit Jatia. a vegetarian.whilstensuring that the products meet the requirements of a balanced diet.McDonald’s managers were well aware of the fact that political activists can createtrouble for foreign-based fast food chains.1.The company’s localization strategy is clearly manifest in the critical area of management. and(2) How to avoid political confrontation with Indian government and politicalactivists. MARKETING STRATEGY 5.b “Politically Correct” Strategy: In the beginning.1. Vikram Bakshi’s Connaught Plaza Restaurants Private Limited waschosen to own and manage McDonald’s restaurants in the northern region. that won the confidence of the Big Mac‘s management. 5. In Mumbai. The two local managing directors (Bakshi andJatia) of McDonald’s took a series of politically correct strategies to deal with the initialchallenges of the Indian market. act local” a concrete shape in India. HardcastleRestaurants Private Limited. Both VikramBakshi and Amit Jatia are responsible for running McDonald’s in India. Instead.1 McDonald’s Road Map for India – 5.

Selecting the Target Market – • Segment: Each company identifies the parts of the market that it can serve best and mostprofitably. 5. Besides. managers.1. which is called the segment of the market it wants to serve.cashiers.characteristics. and the average McDonald’s restaurantin India employs more than 100 people in all kinds of positions.c Employment Opportunity India has come a long way from opposing the entry of MNCs to encouraging them toexpand their business operations in India. cooks. great service and restaurantoperations. which is very pleasing to government officials. every expansion also brings additional income and employment opportunities toIndia’s agricultural work force. Marketsegmentation allows to divide a market into smaller groups of buyers with distinct needs.McDonalds’ identified certain segment based on its geographical and demographicsegments. An important reason for this shift in attitude is theability of the company to generate quality and long-term employment opportunities forIndians. Thisworld-class strategy is the latest element of overall plan to continue revitalizingMcDonald's for customers through compelling food choices. or behaviours who might require separate product or marketing mixes.etc. motivating value and exciting new restaurant decors. 8 5. FORMULATING THE MARKETING STRATEGY:5.1.2. o .2 • Shifted from world-wide positioning of drive-in convenience and speedy-service.potato and pea pattie)—wereadded to the menu to lure India’s middle class. Approximately 75% of the menu available inMcDonald’s in India is Indianized and specifically designed to woo Indian customers. Today. every expansion move McDonald’s makesis received well by government officials. McDonald’s typically employs local people.

Thus. or neighbourhoods.income. and nationality. education.cities. then open branches in other cities. gender. As said by Vikram Bakshi from North zone. We want to setup outletonly in cities where we can ensure the quality of products. states. they arealso future consumers. Like its other worldwide locations. McDonald’s also attracted many jean-clad teenagers. McDonald’s has done everything possible to attractchildren. but the main focus was on to attract small childrens so that thewhole young family follows after it. family life cycle. McDonald’s targetedchildren as their main clientele in India. who use the outletas a venue to meet their friends circle.Children are an enormously powerfulmedium for relationship building in India. still a tricky issue among Indian middle-class families. Income segmentation was done to attract consumers from highincome groups. McDonalds’ India divided the country into differentzones based on directions and concentrated particularly on North and West zoneas its first market segment to attract on. generation. “We want to firstconcentrate on metros. a marketcoverage strategy in which a firm goes after a large share of one or a few segments orniches. occupation.McDonald’s targeted different age groups from children and teens to adults uptoage less than 30 years. The possible target market decided on was only 10%of the India’s population. o Demographic Segmentation – Demographic segmentation divides the market intogroups based on variables such as age. countries. They not only influence markets interms of the parental decision-making to buy certain kinds of products.Geographic Segmentation – Geographic segmentation calls for dividing themarket into different geographical units such as nations. religion.” McDonald’s followed concentrated marketing (or niche marketing). race. regions. McDonald’s targeted young familieswho are able to eat out. family size. • Target: A target market consists of a set of buyers who share common needs orcharacteristics that the company decides to serve. Different phases to move into target markets was scheduled on .

. for the average consumer to evaluate logically. which will serve their needs well?Positioning has three components: • . Mc Donald‘spositioned for youth families. With hundreds of choices in anygiven locale. Our marketplaces have lots of choices. Theconsistency helps our customer remember.Phase I – Focus on cities of relatively high incomes where citizens are exposed towestern food and culture. Those who shop around consider two or threeoptions and take the best of the three. and with products and services that most consumers findhard to differentiate.e. Positive spill-over effectof reputation from main metros. and customer service. a place for entire family to enjoy. how do you set yourself. o Phase II – Move to smaller satellite towns (Gurgaon. Pune).2. including fast foods. sales. 5. multiplexes. apart from the crowd? Positioning allows amarketer to think about why a customer would want to do business with them. many people simply look for a referral to a product or with professionalservices: a company that their friends trust. Positioning the Offer ―Mc Donald‘s mein hai kuch baat‖. Too many.With hundreds of choices.Positioning is about communicating the unique selling advantage or proposition to thetarget audience in everything the firm does i. Other cities like Jaipur.2.railway stations and airports. o Phase IV – Introduce new low-priced products with same quality and service formiddle – class income groups of people. highways.perhaps. o Phase III – Move on to crowd pulling centers like malls. What do youoffer that the other producers don't? What does a potential client get by doing business withyou. High-income urban dwellers are seeking variety in their choiceof foods and are willing to spend more on international cuisine. Agra were also targeted to attractforeign tourists who often visit them as favourite tourist destinations. marketing.

) • What are you particularly strong at? (These are your core competencies. Is it prompt claims? Or telling it like it is? Or it might justbe everyone knows you.) • What are you better at. than anyone else in your business? As a company? As aprofessional? As a sales rep? (Quality? Innovation? Cost effective choices?) • Who are your most satisfied customers? What is it that they value most about whatyou have to offer? . we have a positioning statement. Positioningstatements are the bases for all marketing messaging. and at a corporate level:branding. It may not be whatyour internal talk says it is.What are your strengths? Your distinctive competencies? What about your offeringsprovide value to your customers? • Who is your target customer? What about makes them an ideal fit for the value youoffer? • How are you different from your competitors in ways that your customers andpotential customers will value? In other words.So here are the things we need to know to be able to develop your own market positioning: Who are you? As a company? As a sales rep? • What is your firm or known for? (Ask people what they think. it might not be what you think. Or perhaps for returning calls promptly or your problemsolving ability. what is your unique sellingproposition? Your competitive advantage?When all three are put together. Maybe it is just that you are convenient.) • What do your customers appreciate about your products or services? (Ask yourcolleagues and your customers. sales scripts. Maybe you areknown for high quality. Again.

to that target market you seek.• Based upon your sales goals and annual plan. Believe it or not buying your product or service is probably not theirmost important priority. in ways that are better. positioning is that unique value youoffer. . in the end. it comes down to relationships. more amazinglymeeting your needs than any of your competitors. positioning is EVERYTHING.perhaps thousands of commercialmessages each day. who is your target market? The key hereis the fit between what you do well and who or what type of business needs what youare good at. • What value can you bring your customers that they will value the most. Does your vendorunderstand your needs?Thus. the customer service. bestcustomers? Does your branding reflect this? Do your communications use thismessaging as its foundation? o Are your web. collateral. and employeerelationships need to MATCH or be INTEGRATED with the market positioning. And. more effective. and sales force attuned to this value? o Do your services focus on this value? o Does your customer service reflect this value? o Does your customer service reflect the promise of the brand? Or are customerscontinually shocked that the customer service is not like the brand image atall?Your customers are bombarded with hundreds . So. can you articulate this competitive value for your target. because. based uponyour unique strengths? • At a company level.

5.) throughadvertising.2.3.Once a brand is positioned.in the mind of thecustomer.Importance of Positioning: Marketing strategythataimsto make abrandoccupy a distinct'position. what it does and how.utilitarian or luxurious.Firms apply thisstrategyeither by emphasizing the distinguishingfeaturesof their brand (what it is. Creates Demand. Develops Brand Image. etc.' relative to thecompetingbrands. Assembling the Marketing Mix - . entry-level or high-end. etc. Commands Premium Price.)or try to create a suitableimage(inexpensive orpremium. Creates Value In The Mind Of Customer. it is very difficult toreposition it without destroying its credibility.

Assembling the marketing mix means assembling the four P’s of marketing viz. The marketing mix principles (also known as the 4 P’s. package and add value to the product?Product strategies. place. wants. which have to be carefully managed and must meet the needs of the defined targetgroup. you will almost certainly have to change the promotion orcommunication with the customer because you need to tell the customer about the changesyou have made in the product and how the changes will make it more desirable and satisfying.) are used by business as toolsto assist them in pursuing their objectives. Note that the elements of the marketing mix should beintegrated because each element of the mix usually has some impact. . on the other three. The marketing mix principles are controllablevariables. Although you may not have to change where the product isdelivered to the customer. price. The marketing mixshould be viewed as an integrated and coordinated package of benefits that reflect thecharacteristics of customers and various targeted publics and satisfy their needs. and promotion. in the best possible combination. if you improve the product or service you probably have to change the pricebecause it costs more to produce. andexpectations. Forexample.product. The marketing mix is apart of the organizations planning process and consists of analyzing the defined: How will you design. direct or indirect.

and accessibility in thefight to the top of the market. McDonald's is no different. McDonald's understood that the parent was makingthe purchasing decision. An example of this is illustratedwith a comparison of McDonalds and Wendy's. Wendy's targets a more adult market and the restaurants represent a moremature atmosphere with carpet floors and Dave Thomas advertisements. At first glance.20 toy inwith the hamburger.Contrastingly. French fries. input.What McDonald's marketing executives did was ingenious." and fun advertisements with brightly colored "Fry Guys" or the "Cheese Burgerler". Wendy's does havechildren's meals that offer a toy. the "Happy Meal". How will the firm promote its product? Promotion strategies. and that is at McDonald's has Ronald McDonald. playgrounds or PlayPlaces. . Both are fast food and provide similarproducts. they may appear to haveroughly the same marketing mix and target markets.What pricing strategy is appropriate to use?Price strategies.Then McDonald's marketed the Happy Meal to the kids. one can recognize that McDonald's primary target marketis children ages 3-11 and their parents. and drink and gave it a special name. they will tell you that there is only one place you can buyone. Marketing strategies must feature customer orientation. "HappyMeals. However. They put an Rs. If you have you ever asked yourchild where to buy a Happy Meal. most likely based on price. looking closer. Where will the firm locate?Place strategies.

promotion.but overall the atmosphere attracts a different demographicgroup. McDonald's restaurants have a variety of strategies that apply to product. well-recognizedorganizations in the world. and price that makes them one of the most successful. A>Product Strategies – product Branding quality Features . placement.

There have been so many strategies since the inception of the firm that it is difficult to account for them all. tomato. McDonald’s decided. quality food and provided an entertaining atmosphere for thechildren. peas. the two most memorable are thedevelopment of the "Golden Arches" and "Ronald McDonald". its value-systems and itsinfluence in food consumption decision making. The vegetarian burgermenu consists of the McAloo Tikki Burger.McVeggie is another Vegetarianburger on the menu. It looks similar to the above McAloo Tikki Burger. mutton andchicken. These things were what that the market wanted at the time and the firm answered inspades.The firm revolutionized the fast food industry and positioned itself as the marketleader with low-priced.Italian mayonnaise. Christian took both beef and pork.There is also a Pizza McPuff. There have been so many strategies since the inception of the firm that it is difficult to account for them all. Hindus preferred neither beef norpork. and spices. consisting of a puff pastry stuffed withpeas. but is made frommixed vegetables. These two icons have givencustomers a mental image of what to look for when they want quality food for a low pricefast.Another new Menu Item added is the McSurprise burger. onion. quality food and provided an entertaining atmosphere for thechildren. lettuce and veg mayonnaise (referred to as Veg Sauce inIndia). for the first time in theirbusiness history. to drop ham and beef burger from their .McDonald’s concentrated on studying the Indian culture. peas. These two icons have givencustomers a mental image of what to look for when they want quality food for a low pricefast. These things were what that the market wanted at the time and the firm answered inspades. and a vegetable-tomatomayonnaise. The perceived secret of McDonald's success is the willingness to innovate.vegetable burgerwith potato. even whilestriving to achieve consistency in the operation of its many outlets.The firm revolutionized the fast food industry and positioned itself as the marketleader with low-priced. Muslim took beef but though pig meat to be dirty. It is a Product Strategies – McDonald's marketing strategies should be looked at historically in order to see thelarger picture of the firm's success. they stuck to mostly fish. sliced cheese etc. onion.McDonald's marketing strategies should be looked at historically in order to see thelarger picture of the firm's success. It contains a patty. and spices. It found that although a substantialproportion of the populations were non-vegetarians. the two most memorable are thedevelopment of the "Golden Arches" and "Ronald McDonald".

The trick is to consider how to eliminate some of the existing menu items when you introduce new ones. They ensure that the cooking area as well as cooking equipment forvegetarian products is visibly segregated from the non Vegetarian sections. Many ideas for new menu items come from franchiseesresponding to customer demand. The cheese and cold sauces used in India is100 % vegetarian. This. McDonald’s has also re-engineered its operation to addressthe special requirements of a vegetarian menu. If the product line-up gets too large. To maintain consistency in the current menu while the firmtests new products to expand the product line. McDonald's relies on test marketing new menuitems in pilot locations. then the task of maintaining quality becomes exponentially harder. McDonald's established warehouses within a reasonable proximity to all of their restaurants to solve some of the logistical problems it had experienced. they evenexcluded mutton burgers from their offerings. McDonald’s are committed for giving customers wholesome. McDonald’s developed a menu especially forIndian with vegetarian selection to suite Indian taste.Franchisees agree to operate theirrestaurantsin the "McDonald's way" but thereremains room for innovation. which have already been researched and tested. along with . The franchisees additionally benefit from the extensive national market research programs that assess consumer attitudes and perceptions.menu. It introduced products like McTikkiAloo for the Punjabi taste buds. The introduction of newproducts. McDonald's already has a history of doing this so it will not require major changes to its operations strategy-at least initially. but the most common obstacle is the logistical planning in getting food and supplies. 2 years back. considerably reduces the risk forthe franchisee. New products are rigorously market tested so that the franchisee willhave a reasonable idea of its potential before it is added to the menu. What’s more-their crew members cooking vegetarian food items are identifiable by their green aprons. anddelicious food. Restaurant chains encounter many obstacles in maintaining their business. What products do they want to buy and at what price? How are they performing compared to their competitors? This approach allows the firm to identify which items are likely to prove popular with consumers while ensuring that the company can deliver new products with consistent quality internationally. healthy. while making sure the staff is fully trained in how to execute these products successfully.

Suppliers are a critical part of the value chain.owning the warehouses allows the restaurants to get all of the needs met in one shipment and not deal with multiple suppliers. It costs to produce and design aproduct. thus sharing in the growth and success of the restaurant. The firm's mutual effort with suppliers and franchisees to develop and improve. This growth and continued success.products and production techniques enables McDonald's to meet the high quality standards. it costs to distribute a product and costs to promote it. Pricing is difficult and must reflect supply and demand relationship. B] Pricing Strategies Pricing is the only mix which generates a turnover for the organization. has allowed McDonald's to pass that value along to the customer. McDonald's considers product quality to be the most important aspect and sets its standards among the highest in the food industry built.. Theremaining 3p’s are the variable cost for the organization. and the elimination of too many intermediaries. Price must support theseelements of the mix.. ..

it costs to distribute a product and costs to promote it. A product is more thana physical item.penetration skimming competition pricing strategies product line bundle psychological The customer's perception of value is an important determinant of the price charged. This means the profit margin has been reduced without increasing sales. McDonald’s has achieved success by tapping middle-class households. it has not been as successful at effectively tapping the middle-class andlower middle-class segments. But this section has mainly stayed away because of a widelyprevailed perception that McDonald’s is expensive. It costs to produce and design aproduct. The danger of usinglow price as a marketing tool is that the customer may feel that quality is being compromised. Afurther consequence of price reduction is that competitors match prices resulting in no extrademand. Capturing the latter segment is critical as McDonald’s startsentering into smaller cities. Theremaining 3p’s are the variable cost for the organization. while McDonald’s has been able to get a larger share of rich and upper-middleclass population. it also has psychological connotations for the customer. Price must support theseelements of the mix. Pricing is difficult and must reflect supply and demand relationship.Customers draw their own mental picture of what a product is worth. Strategies – Pricing is the only mix which generates a turnover for the organization.But in India.Worldwide.It is important when deciding on price to be fully aware of the brand and its integrity. This is the reason why the company cutprices on its vegetable nuggets from Rs 29 to Rs 19 and the soft .

S. .Burger . The company strives to differentiate itself from other fast food restaurants byoffering a variety of menu items that appeal to a variety of people from those who just wantgreat burgers. which ensures efficiency and speed in distribution. Clearly. McDonald’s offered its enormously popular shudh shakahari(pure vegetarian) Veg Surprise (a veggie burger) for Rs 17.service ice cream cone fromRs 15 to Rs 7 in 1997.Maharaja Mac MealRs: 95 √ Family Dines under Rs: 300 √ Prices lower than Pakistan. McDonald’s launched aHappy Price menu under which it sells four of its burger products at Rs20 each. baap ke zamane kadaam”.McDonald’s was able to sell the veggie burger 40% more than what it expected within amonth between September and October of 2001. Sri Lanka. to those who just want a quick healthy meal. Besides.The most important reason for McDonald’s pricing flexibility is its well-establishedsupply chain arrangement. French fries .Coke-Veg Rs:75 . In March 2004. In September 2001. the McDonald’s strategy has been to increase salesvolume of its products by making its products available at an affordable price.A very popular punch line of McDonalds . The main reason of this price strategy was too attract the middle class & the lowerclass of people in India. hugeincreases in volume sales and food processing technology have been helping the company tooffset its cost.Coke + Toy √ Medium Meal Combo. This has ledto a 25% increase in customers.French fries . and 50% lower than U. With this price.Value Pricing √ Happy meal – Small burger . After this not only the upper class prefers going there but all class of people go there.“Aap ke zamane mein.

C] Promotion Strategies – A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. online. cinema. An organizations promotional mix can consist of advertising public relation salespromotion promotional mix personal selling direct mail internet/E Commerce The promotions aspect of the marketing mix covers all types of marketingcommunications. . The methods include advertising. sometimes known as 'above the line'activity. radio. Advertising is conducted on TV.

one of the world’s mightiest consumermarketers. The subsidiary of both the companies pitchedfor the account and ‘Mudra’ the Indian partner of DDB Needham got the account.McDonald’s also sponsor many Television Programmers like ‘Kaun Banega .poster sites and in the press(newspapers. hoardings and bus shelters.feel positive about it and remember it. Folks. Needham’s advertising formula became knowin McDonald’s as “Food. Showing the benefits which they will obtain by takingaction. making the ninth most valuable brand in the world Why Mudra in India? DDB Needham and Leo Burnett are the advertising agencies of McDonald’s areworldwide. so get up and get away. Its brand valuation is $25 billion. McDonald’s is now.The Mudra team meets up with McDonald’s marketing team on a regular basis andthey have a debate and discussion on the new strategies to be adopted. An organizations promotional mix can consistof:Needham was one of the first advertising agencies of McDonald’s which made manyrevolutionary advertisements for the company.in fact. The next stage is toget them to want what is offered. the most identifiable advertising themes of all time. The right messages must be targeted at the right audience. They are almost out of print ads.Key objectives of advertising are to make people aware of an item. The Media Magic “You Deserve a break today. usingthe right media. McDonald’s usesvarious Medias like television. and Fun” and it remains the backbone of all the chain’sadvertising campaigns. Since thevery beginning Mudra has been the advertising agency of McDonald’s India. when they came to India. is usually sufficient.To McDonald’s”The above break commercial was one of the initial commercial themes adopted byMcDonald’s United State which became the best known commercial song on television and. Strategies – A successful product or service means nothing unless the benefit of such a service canbe communicated clearly to the target market. magazines). The more McDonald's knows about the people it isserving the more it is able to communicate messages which appeal to themMessages should gain customers' attention and keep their interest. Hence.

The hoardingsaround the outlets carry the same theme. “I am loving it” refers an attitude we want your employees to embrace & reflect intheir services. Creating catch phrases are only onekind of promotion.Reconnecting with customers’ through contemporary global marketing direction “I’mloving it”. This board also of the product before it ispurchased.Children shows etc. how the vegetarian products are made etc. convenience. banners in and around the outletsis decided upon by the area sales manager and the operations manager.g. Under the recentresearch conduct by McDonald’s they found that the consumers would have a clearremembrance of the 80-20 Board. They call itthe 80-20 menu board eighty percent visual and twenty percent descriptive.Crorepati’. The placing of the pamphlets.and McDonald's still makesyou feel like you are getting a break in your hectic day.g. For e. all their Papermats had description of the burgers. They haveto be designed such that they catch the attention of the customer and tempt him to order theproduct. McDonald's sees the use of these catch phrases and the use of the GoldenArches as a very successful way of differentiating therestaurantsfrom helps give a feel other fast foodcompetitors. So McDonald’s have menu boards that are descriptive as well as visual. service. to regain theconfidence of the customers. and McDonald's uses many kinds of promotions to keep therestaurantsatthe top of the industry. : currently they have the Bugs Life Theme going on whereinthey give free Bugs Life toys with the happy meal.Their other lucky Promotion strategies were like:• . and value . McDonald's has taken price competition out of the picture because the customerfeels they have gotten quality.: During the French fries issues. in coordination withthe restaurant manager.Even the paper Mats on the trays at the McDonald’s are designed as per the ongoingMarketing Strategy of McDonald’s. For e. All the outlets are decorated with thepictures of the toys and even the paper mats have pictures of the toys on them. The 80-20 Menu Boards Even the menu counters in the outlet are a marketing tool for the company.

• Prices. Hungama . internet card. and more. • Scratch cards on large jumbo meals. T-shirt. etc. As a part of its Quick Service Restaurant (QSR) business. McDonald’s has initially decided to open . stores. free tickets to Lucky Ali’s contest. McDonald'sis tuckingrestaurantsinto schools. CD’s.Collaboration with coke.com.caps. Direct Distribution Indirect Distribution Logistics play a critical role in McDonald’s location strategy. In addition. M TV. Sony Music. • Purchase of 2 nd meal in a month qualified for Opel Corsa/ NZ trip D] Placement Strategies restaurantsare positioned so that you are never morethan a few minutes away by foot in the city or by car in the suburbs.

despite the city’s huge urban and cosmopolitan character.In order to tap into the business of shopping mall and film-going . BPCL is the leadingpetroleum retailer in India and has the largest number of petroleum stations in and aroundDelhi. and Delhi-Ludhiana highway. andcities with an eating-out culture (such as Ahmedabad. More importantly. to tap the automobile-driving consumers. DelhiAmbalahighway.Besides Delhi and Mumbai. The move to set up these new restaurants has beendriven by new business prospects.McDonald’s has partnered with the state-owned oil company. and Faridabad). like other metropolitan Indian cities. and Shimla). other places where McDonald’s has opened uprestaurants are satellite cities located near Delhi (such as Noida. to set up restaurants at the latter’s petrol stations in and aroundDelhi to make it more convenient for automobile-driving consumers.such as the Delhi-Jaipur highway. Two drive-through outlets on the Delhi-Agra and Mumbai-Pune highways haveproven to be successful. It is important to note the shift in government attitude toward MNC’s that led to asuccessful partnership between McDonald’s and the largest state-owned company Keeping an eye on the huge potential for eating out venues for lower middleclassIndians. This is thereason why McDonald’s has not opened a single outlet in metropolitan cities like Kolkata inthe eastern part of India. McDonald‘s has partnered with a railway station and bus station in Delhi to open itsoutlets: Delhi Metro Rail Corporation. Ahmedabad has asignificant number of eating-out customers.and tourists. and Bangalore). Chandigarh.its outlets onlywithin a 500-km radius of its main distribution centers in Delhi and Mumbai. Bharat PetroleumCorporation Ltd. logistics. McDonald‘s has set up drive-through outlets in Delhi and along nationalhighways. orMumbai (such as Pune). TheMcDonald’s outlet in Ahmedabad in the state of Gujarat is an interesting case. But. and the overcrowded Delhi‘s Inter-State BusTerminus. Gurgaon. The company has plans to open more drive-through outlets in Delhiand Mumbai and along national highways . itseems that McDonald’s well-balanced menus of vegetarian and nonvegetarian items hasprovided enough choice and space for customers of this city. Ahmedabad islargely a vegetarian city. and supply chain. Mathura. Given long lines of people at the counter. where thousands of people pass through daily on their way to differentdestinations. (BPCL). business travelers. places with tourist appeal (such as Jaipur.

Not only does McDonald's want to add value for the customers.McDonald‘s has set up outlets at shopping malls and new multiplexes in metros like Delhiand Mumbai. along with owning the warehouses allows therestaurantsto get all of the needs met in one shipment and not deal with multiple suppliers. families with children are happy to spend at least 7rupees to buy an ice cream for their children. but also the firmlooks for ways to improve the operations that makes McDonald's a more efficient business. the lines at the McDonald‘s counters seem unending. McDonald's establishedwarehouses within a reasonable proximity to all of theirrestaurantsto solve some of thelogistical problems it had experienced. but it has eliminated the need tocoordinate paper products deliveries with meat deliveries. the firm has created efficiency in getting the products to the customers quickly and asfresh as possible. More important.McDonald's value chain is unique because of the rare need to depend upon othercompanies for supplies. of course. A similartrend is seen at the newly opened multiplex in Delhi‘s Vikaspuri. The firm owns nearly every portion of the value chain includingwarehouses. it is not surprising to see that many people are content with window-shopping at the Crossroads. Given the premium pricingin the shopping mall. Thus. and in doingso.customers. . and infinding more ways than one to satisfy customers. The success of its outlet at the Crossroads in Mumbai is evidence that astrategic location outside a mall can bring in customers in hordes. This. but the most commonobstacle is the logistical planning in getting food and supplies. improvement on serving time. 6.McDonald's is constantly striving to add value to the firm for their customers. But they do not mind spending a few rupees at McDonald‘s for aburger or spicy fries. while most shop-owners at the mall arehardpressed to break even. PHYSICAL DISTRIBUTION AND LOGISTICS A company the size of McDonald's requires the value chain to be increasinglyimportant. delivery trucks. and thereal estatewhere theirrestaurantsbuilt. does not eliminate the need for suppliers. McDonald's is constantly looking for ways to improve and is successfulbecause of the continuous updates on equipment.This. Restaurant chains encounter many obstacles in maintaining their business.

• Buns come from Cremica Industries in Phillur (Punjab) and Shah Bector and Sons inKhopoli (Maharashtra). But given India’s relatively higher importduties and foreign exchange fluctuations. . Nainital.6. The company. and Ooty (UttarPradesh).(2) To enjoy flexibility in pricing. McDonald’s decided early on to source its rawmaterials from the local suppliers to the maximum extent possible. • Fresh lettuce comes from Delhi. it also actively imports.To achieve these three objectives. however.1 Supply Chain Management Another critical strategy was to set up a well-established supply chain in India inorder to achieve three objectives:(1) To operation it’s globally practiced QSCV (quality. • Pickles come from Global Green Company in Hyderabad (Andhra Pradesh). Pune (Maharashtra). sources 95% of its raw materialsfrom 38 local suppliers. Currently. • Cheese comes from Dynamix Dairies located in Baramati (Maharashtra). and value)principle. and(3) To launch a new product when necessary. In some cases. McDonald’sonly imports the process control equipment that allows it to dish out burgers and other orderswithin its super-fast time frames. cleanliness. McDonald’s often uses an outsourcing model in allits markets. service.

. temperature control. a joint venture(50:50) between Airfreight and Coughlin in the U.Setting up a well-coordinated supply chain was not easy. Vista International..McDonald’s has worked with local Indian suppliers to consistently improve thequality and increase greater yields of agricultural products. and pizza puffs come from Vista ProcessedFoods in Taloja (Maharashtra). and vegetable andchicken patties. To ensure standardization andhigher quality. and Chicken patties. Pune. inThane. An underlying principle in productdevelopment was to strictly adhere to the Indian government’s regulation on food. a cold chain consisting of a precooling room to removefield heat and large refrigerated vans with humidity controls. McDonald’s transferred itsstate-of-the-art food processing technology to India. Maharashtra. and chill rooms. given India’s poortransportation and storage infrastructure. and Radhakrishna Foodland (P) Ltd. as well as its lower-quality agricultural products.Thus. To do so.S. which supplies the pies. Vista International has obtainedAmerican Institute of Bakers and Hazard Analysis Critical Control Points (HACCP)certification . enabling Indian businesses to grow byimproving their ability to compete in today’s international markets.and other regions. andhygiene and to exceed the government’s standards. nuggets.The entire supply distribution is the responsibility of AFL Logistics Ltd. health. pies. McDonald’s shared with Trikaya advanced agricultural technology andexpertise like utilization of drip irrigation systems that reduce overall water consumption andagricultural management practices. AFL is responsible for temperature controlled movement of all productsfrom suppliers to distribution centers. vegetable patties. it helped farmers of Trikaya Agriculture Company to grow high-quality lettuce year round in Ooty. This new facility hasinsulated panels. Delhi. For instance. McDonald’s and itsinternational suppliers worked together with local Indian companies to develop products thatmeet the rigorous quality standards McDonald’s demands. six years prior to the opening of its first restaurant in India. For quality control. built a new facility in 1996 with help from McDonald’s. Trikaya’s post-harvest facilities nowinclude a large cold storage facility.• Sauce comes from Bector Foods in Phillur (Punjab).

the data logs help the company to identify the batch from whichthe particular food item came. each truck delivers multiple items at one goand saves the company and restaurants a huge sum of transportation cost. This is possiblebecause of the company’s installation of enterprise resource planning (ERP) software. has earned anexcellent reputation in maintaining a tight “delivery-on-time” schedule. This way.. Then the company issues a warning or decides to discontinuethe batch from which the food item came. the improved transportation and food processingtechnology seems to have served as an important catalyst for increasing India’s agriculturalproductivity while raising farmers’ incomes. Not surprisingly. Now.Radhakrishna Foodland distribution center also maintains high-quality standards incleanliness. Eachof the company’s delivery trucks has three degrees of refrigeration—a freezer section formeats.for quality standards. including personal hygiene for the drivers.the company has set up a trucking fleet to move supplies to restaurants at short notice. In case of a complaint about a food item atany McDonald’s restaurants. Indian companies like Dynamix Dairies had the technology but nomarket for their milk derivative products.Radhakrishna Foodland (P) Ltd. but also has an export order of approximately US$12million per year. and a non-refrigerated section for paper cups. a cold refrigerator section for vegetables. With the help of McDonald’s. The company maintains detailed data logs totrack the movement of each batch of food items. and plastic cutlery. By associating with McDonald’s Dynamix Dairieshas seen a regularly grow ing expansion of its market. FUTURE ANALYSIS . packing. and ensured higher customer satisfaction. the company has obtained AmericanInstitute of Bakers and HACCP certification for quality standards. which is responsible for getting products fromvarious suppliers and delivering products to various McDonald’s outlets.Such meticulous planning in setting up a well-coordinated supply chain system haspaid rich dividends to the McDonald’s operations in India.In some cases. This ensures a high-quality standard of food itemsdelivered to each McDonald’s outlet. This has scored very well on the political frontand won the government’s goodwill 7. napkins. which is so very essential for thecompany’s growth. These ways. it not only supplies products toMcDonald’s restaurants in India. and checking temperatures of the food it transports to various restaurants. More critically. whichprovides data of what is selling where. It has minimized costs. the company is able to anticipate demand ineach retail outlet and place orders with producers accordingly. optimizedquality control.

Lower the supply chain cost so that it helps in cost reducing.10. To educate about healthy lifestyle. Special promotions during festivals as Indians tend to spend more at such events. Work for social welfare of thesociety. Introduction of cafeterias serving premium and specialty coffees and other beveragesand other products such as cakes.McDonalds’ can use following promotional techniques which should beappropriate to be used for increasing the sales: 1.2. Try to sponsor college festivals. 8.6. youth.9. to include more deserts and more items.11. pastries etc in the existing McDonald’s. Focus on gifts for all generations i. Increase its product line.e.3. Provide with better ambience. To have more variety to choose from.12.5.4.8. CONCLUSION . Increasing the space for provision of birthday party areas.13. kids’ especially senior citizen which is acompletely new concept.7. To expand their Happy Meal choices to attract and retain customers. To provide better and quick service.

research shows that McDonald's is very careful in makingdecisions that effect each area and/or how each area effects the other. employees. Local adaptation. In addition to thesedecisions. McDonald's isconcerned about how the firm will fulfil the needs and wants of its customers and in theactivities associated with maintaining therelationshipswith its stakeholders. price. The company's environmentalefforts. . McDonald's must keep the strategic nature of itsmarketing efforts to stay on top and provide what customers want. service. just likethe McDonald brothers and Ray Kroc intended.McDonald's marketing mix is strategic because of the diverse approaches that areused. the development of the Golden Arches or Ronald McDonald has providedconsumers with memorable icons that are associated with quality. in identifying the "four P's" of marketing addressed earlier (product. The keys toits future success will be maintaining its core strengths-an unwavering focus on quality andconsistencywhile carefully experimenting with new options. suppliers. franchisees. Though there aremany opportunities for this fast food giant. and value. no doubt. should not overshadow its marketing initiatives.McDonald's has shown care for customers through the decisions to add more healthfulfoods to the menus. while important. and the local communitiessurrounding them. McDonald'sstakeholders include customers.promotion. andby philanthropic contributions and sponsorships. First. by changing how products are packaged or how foods are prepared. The restaurant has developed competitiveadvantages in the industry of serving quality fast food at a low cost. and placement). has contributedto McDonald’s business growth in India .McDonald's faces some difficult challenges in moving away from the fast food kingto a more health conscious provider for customers who care about what they eat.

A burger is usually accompanied with lots of French fries. In a flash of innovation. etc. sold hamburgers from his oxdrawn food stand at the Outagamie County Fair. cheese. Food History Burger. often slightly smoked." He returned to sell hamburgers at the fair every year until his death in 1951. and spices. Sailors who visited port brought special food called “Hamburg steak” as a popular usage. vegetables. very few have every thought about the history and origin of the delicious patty. Immigrants arriving England at that time also bring new food with consist of chopped beef. resident who went on to co-found the White Castle Hamburger system. the largest port in Europe was in Germany. He was known to many as "Hamburger Charlie. have started replacing the beef in the patty. he flattened the meatballs. lettuce. along with condiments like ketchup. Louis in 1904. a Wichita. Kan. read on.. tomato. He went to the Outagamie County Fair and set up a stand selling meatballs. like potato. But the man who gave the hamburger its contemporary look and sought to expand the products appeal through chain operations was J. The other famous story is that Charlie Nagreen of Wisconsin. With time. is the name given to a grilled beef patty that is served in a bun. at age 15. there is a history that in late eighteenth century. Business wasn't good and he quickly realized that it was because meatballs were too difficult to eat while strolling around the fair. or hamburger. mixed with onions and breadcrumbs. the oldest continuously running burger chain. Walter Anderson. suet. To get some interesting information on background of burger. other ingredients. mayonnaise. However.history of Burger Food History The widest-reported "first" appearance of the hamburger most commonly cited in the lore of foodservice was that the product appeared at the World's Fair in St. PLAN OUTOLINE . onion. fish and chicken. placed them between two slices of bread and called his new creation a hamburger. However. mustard. It was a hard slab of salted minced beef. Burger is a very popular fast-food of almost all the kids as well as college-goers.

Strategically located in Malate Manila. The last key is the need to ensure proper visibility. is used as a healthy.0 EXECUTIVE SUMMARY COMPANY SUMMARY SERVICES MARKET ANALYSIS SUMMARY STRATEGY AND IMPLEMENTATION SUMMARY MANAGEMENT SUMMARY FINANCIAL PLAN APPENDIX Sandwich Restaurant Business Plan Executive Summary Burger Pal is a new restaurant that serves fresh and healthy BURGER sandwiches. Management Pita Pal will be lead by Steve Jones.1.0 6.0 5. Steve will develop a . and the award of a starter loan from the school's Entrepreneurship Program. Burger Pal will quickly become the premier lunch destination downtown. since the restaurant industry is quite competitive. Burger Pal will attract 35% new customers a year after the second year and will reach profitability by the end of year two. Steve worked for his parents at the family's restaurant for several years before moving on to work in one of Washington's finest restaurants while in college. which will be important. salads. valuable academic course work.0 7. deserts and coffee beverages. Through a combination of extensive business experience.0 4. The customers will have the choice of Middle Eastern filling such as Hummus and Tabouli or more traditional American filling. targeted marketing campaign to support the opening of the store in order to ensure enough business. serving locals and students. Keys to Success Burger Pal has identified three keys that will be instrumental in its success. tasty foundation for a variety of sandwiches.0 2. Middle Eastern flat bread. a veteran of the restaurant industry. The second requirement is that it offers high-quality fresh and healthy food to clearly stand out from the competition.0 3. Food Burger Pal will offer the community an exciting menu of Burger sandwiches. The first is the design and implementation of strict financial controls. as well as participating in Washington and Jefferson's Entrepreneurship Program. Pita Pal must have a effective. Pita bread.

1. 1. PA. Ensure sufficient visibility. no customer will leave who is dissatisfied. Sales for year two and three are $145. This is extremely important in a retail food establishment.2 Keys to Success    Employ strict financial controls. Company Summary . PA. To continually draw students off campus for lunch at a rate of 35% new customers per year after the second year. Pita Pal will offer the finest customer service. 1. Offer the highest-quality lunch time fare.3 Objectives    To become the premier sandwich shop in downtown Washington.676 respectively. healthiest and best tasting pita sandwiches in Washington.1 Mission It is Pita Pal's mission to offer the finest.profitable niche lunch restaurant.299 and $203. A strong marketing campaign required. To become profitable within the first two years. Profitability will be reached by the end of year two.

The following is a somewhat complete list of the needed equipment:           Cash register. serving dishes.Pita Pal is a recently formed PA based L. table clothes and other table accessories.L. cutting boards. Shelving units. Internet connection. The business will be based in downtown Washington and will serve the lunch and early evening crowd. Assorted knives. The company is wholly owned by Steve. formed by Steve Jones.C. Espresso machine and coffee maker (these items are subsidized by the coffee vendor who sells the coffee/espresso beans). Start-up Funding Start-up Expenses to Fund $5.1 Start-up Summary As a start-up organization. Refrigeration unit. Convection oven. Pita Pal will require a decent amount of equipment to begin operations.500 . Computer system. Tables. including printer. CD-RW. silverware. chairs. food containers. Lighting units. 2. Blender/food processor.

Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) $59.000 $25.000 ($5.500 $65.500 $0 $34.500 $59.000 $0 $65.000 $0 .000 $34.500 $65.500 $59.500 $0 $0 $0 Other Current Liabilities (interest-free) $0 Total Liabilities Capital Planned Investment Entrepreneurship Program Loan Investor 2 Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding $40.000 $25.500) $59.

C.000 2.2 Company Ownership Pita Pal has been formed as a limited liability company in Pennsylvania.500 $65. .500 $0 $25. business formation has been chosen as a way of protecting the owner from personal liability while avoiding double taxation associated with a traditional corporation.000 $59.000 $300 $500 $1. Create your own business plan » Start-up Requirements Start-up Expenses Legal Stationery etc.L.Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan. Brochures Consultants Rent $3. The L.000 $700 Total Start-up Expenses $5.500 Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements $34.

baba ganouj. chicken. Each customer will have their choice of different fillings for the pita sandwiches. a tenth of a mile from downtown. turkey. . there are lots of different businesses that have hungry lunch time workers. espresso and coffee. Ages 17-22. the first is the desire to get off campus. Market Analysis Summary Pita Pal will be serving the Washington. Currently. both green as well as pastas. Pita Pal should be a big hit. healthy. ham. diner food. Demographic data and behavioral traits for the students is as follows:        75% of the students are on some sort of financial aid. 36% of the students were in the 85th percentile for the SAT. Pita bread is chosen for several reasons: it is unusual.1 Market Segmentation Pita Pal has segmented the market into two distinct segments: Students This group is primarily from Washington and Jefferson College. pesto. Main Street has been chosen in Washington because of the recent renaissance of the downtown area. weekdays from 10-6 pm. The towners will appreciate the selection and change from the more traditional offerings currently available on Main Street. assorted vegetables and assorted cheeses. there will be several different salads available. In addition to the pitas. The range of options for fillings (not an exhaustive list) are: tofu pate. assorted deserts. The students are looking for food vendors for two main reasons.Services Pita Pal is a downtown based sandwich shop serving the lunch time hour as well as early evening. 75% of the students are on the school food program. 89% of the students eat out at least twice per week." The students will be attracted to Pita Pal as a better alternative to their on-campus meal plan. 4. While this might appeal to older residents of the town. The competitive environment that Pita Pal faces is not too stiff. hummus. Most of the lunch time fare in downtown can be categorized as traditional offerings. a liberal arts school. Two distinct market segments will be targeted: students of Washington and Jefferson College and "towners. the second is to have an alternative to the on-campus food service. PA lunch time and early evening crowd. falafel. 67% have a part-time job. tabouli. and quite versatile. 42% of the students were in the top 15% of their high school class. this does not appeal to many college students and to a growing population of people who are in search of more healthy food.

99% . The average individual income is $38.This information pertains to the Washington and Jefferson students.108 Year 2 Year 3 Year 4 Year 5 CAGR 7. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. there will not be a significant number of community college students. There will be a few community college students who will trickle in. Towners This group is the people that live and work in Washington. 44% of the people work within a seven minute walk from the downtown area. but since their campus is six miles away.665 2.468 2.878 3. primarily in the downtown area. Create your own business plan » Market Analysis Year 1 Potential Customers Growth Students 8% 2. 55% of the people have at least some undergraduate schooling.285 2.000.      Ages 24-55. 76% of the group go out for lunch one to two times a week.

If they reach it any earlier it is likely that they are cutting corners and that profit is unlikely to be sustainable.932 60. . Students spend the majority of their day on campus. it is normal for a venture to reach profitability by year two. student newspaper. It is also similar to fast casual where the clientele tends to spend more time at a table relative to a fast food restaurant. Pita Pal will attempt to communicate with this group via the local newspaper. The food is more expensive than a normal fast food restaurant and there is a larger product offering. as well as healthier alternatives such as Subway.Towners Total 8% 8. If it takes more than two years than it is quite questionable whether they will ever reach profitability.3 Service Business Analysis Pita Pal exists within the general restaurant industry.675 8.00% 8. There are many different categories within the restaurant industry.989 48. one for each group. and the menu is somewhat limited in selection. Pita Pal fits within two different niches within the industry. These are people who work downtown and tend to patronize the other downtown businesses.567 65. Their offerings are similar to fast food in that orders are placed at the counter and served within a few minutes. The General. fast food and fast casual. The towners can be reached through different sources of communication.3. 4. These people are more in tune with the different business organizations that exist downtown. For the restaurant industry. and Wendy's. Create your own business plan » 4.2 Target Market Segment Strategy The two different market segments that Pita Pal will be going after are distinct enough that there will be two different marketing campaigns.274 49.306 57. Burger King.810 62.1 Competition and Buying Patterns Pita Pal's competition exists in many forms:  Fast food: This takes the form of the traditional restaurants such as McDonald's. 4.00% Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan. but typically venture off campus during the day for lunch.136 53. This is necessary because the two groups respond to different forms of communication.668 52. The marketing effort to reach the students will be based on their forms of written media.641 56.00% 45.

this is an alternative in terms of food offerings. custom food alternatives. Strategy and Implementation Summary Pita Pal's business strategy will be to emphasize its healthy. As mentioned earlier. standard deli fare. Most of the competitors cannot compete with Pita Pal's healthy menu. many of the students are looking for other alternatives regardless of the fact that their food is already paid for via the plan. Everything else is oil free. It is Pita Pal's goal to serve the customer in whatever capacity is needed. Pita Pal will work hard to ensure that every customer has a wonderful experience at Pita Pal. the menus are right out of the 1950's.1 Competitive Edge Pita Pal has two competitive edges that will help it succeed in its business. In addition to the absence of oil based fats. The other competitive edge that Pita Pal will leverage is customization. Pita Pal takes pride in the fact that the only thing fried on the menu is falafel. Because of the poor food offerings and the need for variety. Pita Pal's marketing strategy will be distinct for each of the two market segments that it is seeking to attract. The sales effort will be based on obtaining 100% satisfaction. 5.    Pizza: The predominant pizza place for sit down food is Brothers pizza. The first edge is its healthy menu. This takes the form of its competitive edge where it will build the patrons pita pocket any way that they want. This place is more popular with locals than with college students based primarily on the fact that the professor owners are not very well liked as professors so many students avoid the place. Most of the students have a food plan. Diners: Based on the aging demographic of Washington. Additionally. or at least free of any oils other than olive oil. a function of its steel industry roots. generally sliced deli meats. one of them downtown. On-campus food service: At least for the students. ensuring a healthy meal. This competitive edge will also be stressed in the marketing campaign. These are very traditional diners. . much of its offered ingredients are vegetables. Customers are offered a laundry list of ingredients that they get to choose from. no one offers the same flexibility or ability to customize the product offerings. there are several diners located in Washington. owned by two brothers who are professors at the college. Almost anything will be done to ensure any problems that arise are corrected. compromising the nutritional value of their food. These delis serve very basic. Most places uses a lot of fried foods. Deli: There are two different delis located downtown that serve deli style sandwiches.

The fact that it advertises 100% satisfaction is far less significant relative to its actions that ensure total satisfaction. Pita Pal will also use coupons as a way drawing in students. most of them are on a fixed budget and jump at the chance to save money by using a coupon. the organization has the firm belief that if all customers leave the store happy.5. otherwise the service aspect is in vain in the long term because the customers are treated well but do not perceive value in the food that they are buying. increasing the student's awareness about this new restaurant alternative. and are cost effective to serve. Pita Pal will choose a different media source to reach these people. With this in mind. Pita Pal has reason to believe that the first three months of business will be fairly slow. healthy.1 Sales Forecast Pita Pal has decided to take a conservative viewpoint toward its sales forecast in order to increase the likelihood of achieving the stated goals. Additionally. there is a need to have a quality product. The readership levels for the local paper. 5. Print advertising will be used for the towners. That being said. but to a lesser degree with this segment as they tend to have much lower response rates relative to the other market segment. healthy alternative to the campus meal plan as well as other local food vendors. This effort is based on the philosophy that it is far cheaper to maintain a current customer than it is to attract a new customer. The Sentinel are 67% of the targeted population.2 Marketing Strategy Pita Pal will employ a two pronged marketing strategy in an attempt to reach potential customers within the two market segments. there will be a significant increase in sales in the long term. Coupons are quite effective for students. Pita Pal will emphasize its menu as a tasty. . Pita Pal will emphasize its 100% customer satisfaction to win over customers. It is forecasted that business will steadily increase over the first two years. The print advertisements will serve to draw notice to Pita Pal. Recognizing that the students spend the majority of their time on campus. directly correlated with the fact that customers are being properly taken care of. Coupons will be used. 5. The menu has been devised in order to offer a wide selection with menu items that are easy to prepare. Pita Pal will rely on print advertisements and coupons within the student publications. quality food in order to fully support its customer-centered service. While the service offered customers is quite important. To reach the students.3. remain fresh. it is far easier and cheaper to remedy any problems with a customer as it occurs instead of dealing with an unhappy customer. however. Having both a quality product and excellent service will ensure realization of the sales forecast. Since the majority of this market segment work downtown. This sales philosophy is a way of treating customers. Profitability is forecasted to be achieved toward the end of year two.3 Sales Strategy As previously mentioned. Pita Pal must offer fresh. This will prove to be an effective method for reaching this group. Pita Pal must use resources that are successful in reaching the students. flyers will be passed around the downtown area calling attention to Pita Pal's opening.

Create your own business plan » .Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.

Payback of entrepreneurship loan.976 $60.000 in revenue.676 Year 2 $30. it is forecasted to occur within two years. .292 Year 3 $43.Sales Forecast Year 1 Sales Food Beverages Total Sales Direct Cost of Sales Food Beverages $48.697 $8. A date of expectancy has been established and it will be useful to gauge performance on whether the revenue is realized on schedule. 4.030 $12.361 $20.312 $68. Business plan completion. $50.062 $102.079 Subtotal Direct Cost of Sales $18.508 $4.323 $143.299 $203. Very important. 2.048 $55. While non-payment of the loan will not result in serious consequences it is a matter of pride to be able to take a loan from the College's Entrepreneurship Program and turn it into a successful business.434 $42. Profitability. and are achievable: 1. The final version will be accomplished with in the first two months.571 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.242 Year 2 Year 3 $145.673 Year 1 $14.4 Milestones Pita Pal has identified four milestones that are clear in terms of the goals. 3. Create your own business plan » 5.595 $39.

Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Steve has lived in Washington. PA for the last four years while studying for his Bachelor of Arts from Washington and Jefferson College. Create your own business plan » Milestones Milestone Business plan completion $50K in revenue Profitability Payback of loan Totals Start Date End Date Budget Manager Department 1/1/2003 3/1/2003 $0 Steve Operations 3/1/2003 3/1/2003 3/1/2003 11/1/2003 10/15/2003 1/1/2007 $0 $0 $0 Steve Sales Steve Accounting Steve Accounting Management Summary Steve Jones is the driving force behind Pita Pal. .

800 $7. He undertook this task and the business has begun. as well as back kitchen activities such as dishes and clean up. Steve has written a business plan in response to the application requirements for the loans.800 $10.000 $30.000 $27.800 $10. With this in mind. at the end of the last semester of his last year. Steve applied for the a loan through the Entrepreneurship Program and was pleasantly surprised that he won. many months had passed and Steve felt the need to rewrite the plan before beginning the business. Steve will have at least two employees present during open hours. For the first two months of operation. As business ramps. During this period he will oversee the finishing touches on the retail space. Steve will be the sole employee. He enrolled in the Entrepreneurship Program which combined coursework with speakers and empirical experience.5-1 hour after closing. will develop the product recipes. however by the time the loan was awarded.800 $5. front restaurant help. Personnel Plan Year 1 Steve employee 1 employee 2 employee 3 employee 4 Total People Year 2 Year 3 $24.000 $10. While Steve became more and more active in this program.400 $10.5 hours before opening to help with food prep and both employees for . For lucky few.200 $10.800 $10. Month three will mark the first month of sales.1 Personnel Plan Steve will be the main employee of Pita Pal. he began to realize that he would not be truly happy unless he was operating his own business. Steve will also have one employee working 1.800 5 5 5 . While pursuing his degree Steve was a server at a fine dining restaurant called Angelo's.800 $9. it also provided them with a low interest loan which if the business fails does not personally obligate the borrower to repay.Steve's introduction to the restaurant industry came at the early age of 14 when he worked in his family's restaurant in Cleveland.000 $10. Steve will employ additional employees to help out with food prep. where he received more insight into the restaurant industry. 6. and will establish vendor relationships. He also realized that he would be most effective if he worked within the restaurant industry due to all of his experience as well as the wealth of contacts that he had access to because of his parent's business.800 $10.000 $9.

00% 30.Total Payroll $54.00% 0 Year 3 3 Long-term Interest Rate 10.00% 0 Year 2 2 10. 7.1 Important Assumptions The following table will detail important Financial Assumptions.200 $73.00% 30.00% Tax Rate Other 30.00% 0 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan. .200 Financial Plan The following sections will detail important financial information.00% 10. Create your own business plan » 7. General Assumptions Year 1 Plan Month Current Interest Rate 10.00% 1 10.2 Break-even Analysis The following table and chart show our Break-even Analysis.00% 10.600 $70.

149 7. Create your own business plan » Break-even Analysis Monthly Revenue Break-even $9.799 Assumptions: Average Percent Variable Cost 27% Estimated Monthly Fixed Cost $7.3 Projected Profit and Loss The following table and charts illustrate the Projected Profit and Loss.Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. .

Create your own business plan » .Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.

Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. .

980 $0 $107.000 $3.277 $0 $682 $1.292 $0 $39.079 $0 $55.673 $18.691) .190 $0 $85.600 $3.591 $73.400 $5.007 72.691) ($30.676 $55.000 $8.000 $10.734 $2.400 $5.414 $46.600 $3.400 Depreciation Rent Utilities Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit $5.Create your own business plan » Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Costs of Goods Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll $54.102 72.424 $28.600 $3.688) $0 $0 ($35.571 $0 $18.079 $148.004 $9.600 $70.273 $7.000 $10.530 $0 $103.200 $2.200 $2.292 $106.96% $145.571 $50.004 $9.004 $9.990 $68.96% Year 2 $203.000 $3.299 $39.000 $3.794 ($35.598 72.96% Year 3 Sales and Marketing and Other Expenses $2.184 $41.418 $0 $12.

673 $145. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.676 $203.09% 14.299 $203. Create your own business plan » Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received $68.673 $68.97% 1.Net Profit/Sales -51.676 Year 2 Year 3 .299 $145.23% 7.4 Projected Cash Flow The following table and chart will indicate Projected Cash Flow.

037 $0 $0 $0 $0 $0 $167.331 Long-term Liabilities Principal Repayment $0 Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $95.474 $95.200 $67.383 $36.200 $94.074 ($26.676 Year 3 $54.939 $16.099 .293 $52. VAT.Sales Tax.160 $137.183 $167.074 $70.401) $8.299 Year 2 $0 $0 $0 $0 $0 $0 $0 $203. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.673 Year 1 $0 $0 $0 $0 $0 $0 $0 $145. VAT. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $68.360 $7.600 $40.383 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $137.360 $73.

099 $0 $8.500) ($41.331 Year 2 Year 3 Accumulated Depreciation $5.992 $31.988 $62.930 $0 $0 $7.287 $0 $0 $19.000 $10.630 $0 $0 $5.000 Subtotal Current Liabilities $4. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets $25.630 $65.319 Year 3 $8.930 $0 $7.996 $28.099 $16.601) .5 Projected Balance Sheet The following table will indicate the Projected Balance Sheet.095 Year 1 $5.004 Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities $4.191) ($39.000 $7.7.000 ($5.287 Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings $0 $4.630 $0 $5.000 $15.930 $65.012 $9.008 $14.331 $0 $52.030 Year 2 $25.000 $25.037 $0 $16.287 $65.037 $52.

990 $54.030 $25.00% 18.17% 29.809 $25.72% 87.68% 62.399 $31.15% 81.00% 83.319 $54.00% 15.00% 51.74% 0.96% .Earnings Total Capital ($35.00% Year 2 111.389 Total Liabilities and Capital $28.68% 48.095 Net Worth $23.399 $28.32% 100.00% 12.691) $1.38% 51.97% 16.26% 0.15% 0.83% 71.85% 0. Create your own business plan » 7.00% 15.58% 40.00% 12.21% 48.18% Year 3 Industry Profile 6.62% 0.28% 28.39% 37.72% 0.00% 19.00% 18.809 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.17% 100.32% 100.03% 100.6 Business Ratios The following table displays Business Ratios of this company as well as those within the restaurant industry.591 $23. Ratio Analysis Year 1 Sales Growth Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales 0.389 $62.00% 28.26% 84.

a n.15 1.44 27 2.72% 39.00 0.96% 100.00% 72.00 $10.59% 1.75% 1.95% 7.a .401 0.44 12.97% -149.09% 6.93% 71.a 10.a n.87 54.17 26 3.00% 72.14% 66.27 n.23% 53. Liquidity Ratios Net Working Capital Interest Coverage 100.96% 100.68 12.00 $44.27% 7.00% 20.91% 2.72% 76.812 0.00 n.85 2.26% -149.17 26 4.89 15.15% 8.09% 0.00 n.31% 124.00% -51.89 1. to Liab.22 1.Sales Gross Margin Selling.00% 72.00% 59.33% 2.00 0.a n.a 0.26% 6.60 6.60 12.86% 58.30% 1.56% 0.45% Year 3 14.38% 3.a n.00% 1.a $3.18 1.96% 100.407 0. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.17% n.a n.26 0.85 18.32% Year 2 1.97% 0.04% Year 1 -51.91% -127.

31 13% 6.00% 0 Year 3 3 Long-term Interest Rate 10.72 0.a Financial Plan The following sections will detail important financial information. Create your own business plan » .00% 0 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.a n.00 n.1 Important Assumptions The following table will detail important Financial Assumptions.00% 30.21 18% 2.00% 30.00 0.00 0.00% 0 Year 2 2 10.89 2.Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 0.74 0.00% 10.a n.60 3.88 0.00% 10.00% 1 10.85 5. 7.00% Tax Rate Other 30.41 15% 1.a n. General Assumptions Year 1 Plan Month Current Interest Rate 10.a n.

Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.3 Projected Profit and Loss The following table and charts illustrate the Projected Profit and Loss. .799 Assumptions: Average Percent Variable Cost 27% Estimated Monthly Fixed Cost $7. Create your own business plan » Break-even Analysis Monthly Revenue Break-even $9.7.149 7.2 Break-even Analysis The following table and chart show our Break-even Analysis.

Create your own business plan » . Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.

Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. .Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.

734 $2.000 $3.102 72.184 $41.004 $9.990 $68.530 $0 $103.200 $2.400 $5.000 $8.277 $0 $682 $1.414 $46.079 $0 $55.600 $3.007 72.000 $10.079 $148.691) .424 $28.598 72.691) ($30.673 $18.676 $55.600 $3.418 $0 $12.600 $3.190 $0 $85.292 $0 $39.Create your own business plan » Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Costs of Goods Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll $54.000 $3.299 $39.000 $10.96% Year 3 Sales and Marketing and Other Expenses $2.591 $73.688) $0 $0 ($35.980 $0 $107.600 $70.96% Year 2 $203.292 $106.96% $145.571 $0 $18.400 Depreciation Rent Utilities Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit $5.400 $5.273 $7.000 $3.004 $9.004 $9.571 $50.200 $2.794 ($35.

Create your own business plan » Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received $68.676 Year 2 Year 3 .09% 14.299 $203.673 $68.23% 7. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.673 $145.676 $203.97% 1.Net Profit/Sales -51.4 Projected Cash Flow The following table and chart will indicate Projected Cash Flow.299 $145.

383 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $137.200 $67.673 Year 1 $0 $0 $0 $0 $0 $0 $0 $145. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $68.383 $36.074 ($26. VAT.360 $73.299 Year 2 $0 $0 $0 $0 $0 $0 $0 $203.074 $70. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.099 .Sales Tax.401) $8. VAT.160 $137.939 $16.200 $94.360 $7.037 $0 $0 $0 $0 $0 $167.474 $95.293 $52.183 $167.600 $40.676 Year 3 $54.331 Long-term Liabilities Principal Repayment $0 Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $95.

930 $0 $0 $7.930 $0 $7.004 Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities $4.500) ($41.030 Year 2 $25.191) ($39.000 $7.000 $25.287 $65.000 $15.000 $10.008 $14.331 Year 2 Year 3 Accumulated Depreciation $5.5 Projected Balance Sheet The following table will indicate the Projected Balance Sheet.930 $65.000 ($5.000 Subtotal Current Liabilities $4.037 $0 $16.601) .099 $0 $8.319 Year 3 $8.992 $31.630 $0 $0 $5. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets $25.331 $0 $52.099 $16.988 $62.095 Year 1 $5.630 $65.037 $52.012 $9.287 $0 $0 $19.996 $28.287 Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings $0 $4.7.630 $0 $5.

28% 28.00% 18.15% 81.00% 28.591 $23.00% Year 2 111.809 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.32% 100.03% 100.39% 37. Ratio Analysis Year 1 Sales Growth Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales 0.74% 0.26% 84.68% 48.00% 12.00% 18.72% 87.691) $1. Create your own business plan » 7.85% 0.72% 0.030 $25.399 $31.97% 16.17% 100.00% 51.389 Total Liabilities and Capital $28.00% 12.62% 0.00% 19.21% 48.15% 0.00% 15.68% 62.6 Business Ratios The following table displays Business Ratios of this company as well as those within the restaurant industry.Earnings Total Capital ($35.38% 51.26% 0.83% 71.00% 83.58% 40.32% 100.17% 29.319 $54.399 $28.00% 15.389 $62.96% .095 Net Worth $23.809 $25.990 $54.18% Year 3 Industry Profile 6.

00 0.a 0.26% 6.85 2.00 0.95% 7.04% Year 1 -51.401 0.30% 1.00% 72.a n.a 10.27% 7.85 18.72% 76. to Liab.Sales Gross Margin Selling.38% 3.17 26 4.32% Year 2 1.89 1.a .a n.00 n.a n. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.72% 39.00% 1.26 0.96% 100.44 12.17% n.a n.93% 71.45% Year 3 14.86% 58. Liquidity Ratios Net Working Capital Interest Coverage 100.60 6.60 12.812 0.14% 66.31% 124.68 12.09% 6.96% 100.09% 0.97% -149.75% 1.44 27 2.89 15.23% 53.00% 72.97% 0.00% 59.33% 2.17 26 3.91% -127.a n.a $3.96% 100.00 n.56% 0.15 1.00 $10.59% 1.00% -51.18 1.15% 8.27 n.26% -149.87 54.00% 72.91% 2.22 1.00% 20.407 0.00 $44.

chopped piece of beef evolved into the ‘patty sandwiched in a bun’.Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 0.00 0.60 3. A food item resembling the present-day burger. the raw.00 0. Thus was born the initial beef ‘patty’.72 0. to some an extent. Thus.a History of Burger The origin of hamburger is a bit hazy and unclear.31 13% 6. The Claims Though it is true that Americans are largely responsible for shaping the burger into its present form.89 2. there is a dispute as to who was actually instrumental in bringing about the change.88 0. This is because there is no proper documentation to give us an idea about how the fast food came into being. Under the weight of the rider and the saddle. many people have claimed that the hamburger 'patty' was first noticed in the medieval times.21 18% 2. Amongst the major claims are: Wisconsin . was brought to Hamburg (Germany) from Russia in the 14th century and when the German immigrants arrived in America. called Hamburg style beef.a n. With time.a n.74 0. Still.85 5. The dish.a n.41 15% 1. as we know of it today. reached America around the 19th century.00 n.a n. they brought it along with them. Tartars (a band of Mongolian and Turkish warriors) used to place pieces of beef under their saddles. it can be said that America had a major role in giving the world the hamburger. the pieces used to turn tender enough to be eaten raw.

The claims say that Frank and Charles used to travel in a number of fair every year. adding a slice of raw onion on top. In fact. it is also said that he was the one who served fried potato strips with hamburgers. it is also said that he was the one who gave hamburger its name.It has been claimed that Wisconsin is the 'Home of the Hamburger'. Connecticut Yet another claim traces the history of hamburgers to New Haven. Since his meatballs were hard to handle while strolling around. A man named Fletch 'Old Dave' Davis. one of his customers was in hurry and had to eat on the run. With this. In 1885. at St Louis World Fair. He grilled a raw hamburger steak to crisp brown and sandwiched it between two thick slices of homemade toast. selling sausage patty sandwiches. Ohio Hamburger is also said to have originated in Stark County (Ohio). New York). Texas Last. Thy also named the new dish 'hamburger' after Hamburg. It was then that Nagreen got the idea of flattening the meatballs and placing them between bread slices. decided to try something new one day. was born the hamburger of the present times. at the Outagamie County Fair. It is said that Louis Lassen had a luncheonette in New Haven. but not the least. In fact. It is said that Charles Nagreen started a meatball business. His patrons instantly fell in love with the dish & soon. is the claim related to the St Louis World Fair (1904). for the first time. its popularity increased to a large extent. the place where the fair was being held. while selling sandwiches at the Erie Country Fair (Hamburg. from Athens (Texas). Connecticut. One fine day in 1890. the business turned to be a flop. by Frank and Charles Menches. so he ground up some beef and served it in the form of a sandwich. they ran out of pork and decide to substitute ground beef for the same. at the age of 15. .

New York: DuMont Burger DuMont Burger. NY 11211 (718-384-6128) . 314 Bedford Ave. Brooklyn.

FL (305-757-0074) . Small appetites will appreciate the mini burgers—which pack the same oomph into five-ounce patties Miami: Kingdom 6708 Biscayne Blvd. shaved red onion. sliced tomato. caramelized onions. Danish Blue. gently domed brioche bun is neither so fluffy that it dominates the sandwich nor so thin that the thing breaks apart willynilly in your hands. The end product stands approximately four inches high. Cheddar. The key to success: perfect balance of great raw ingredients. Big appetites can add cheese (American..The hamburger at DuMont Restaurant in Williamsburg. Vibrant veggies—Bibb lettuce. The bun-to-burger ratio works. avocado. sautéed mushrooms) for a buck or two more. Gruyère) or other toppings (bacon. Monterey Jack. a monument of beef surrounded by golden fries just begging to be squashed down to mouth size and consumed. Brooklyn—foodie central in recent years—was so good they opened a dedicated shop cross town named after the dish. The lightly toasted. and house-made pickles—are served on the side so you can either handpick the amount of toppings you want or just place the whole heap on top of the patty (eight ounces of 80% lean ground chuck from cows raised on grass and corn). the brioche absorbs the meat's juices as it should. Miami.

but standard toppings include romaine lettuce. red onions. a slice of tomato. He left in 1991. evenly formed. and choice of melted cheese—plus a combo of sauces featuring chipotle with a kick. Owner Justin Hughes won't divulge the secret subtle seasonings. Kingdom's smallest and most recommended burger. DC (202-537-9250) Chef Frank Ruta may not be a household name. Washington. —Victoria Pesce Elliott.Miami's best burger doesn't don any designer toppings or fancy homemade bread. NW. while the King version boasts 12 ounces of beef. DC: Palena Café 3529 Connecticut Ave. Miami Herald restaurant critic 3 of 12 ‹ previous | intro | next › Washington. and . is a grand halfpounder. Instead. The Queenburger. char-grilled patty of chopped sirloin served on a lightly toasted sesame-seed bun. patrons of this raucous Biscayne Corridor dive bar get a simple. The 24-ounce Doomsday is offered free for anyone who can finish it—along with a side of the addictive herb-flecked fries and onion rings—in less than 15 minutes. but he worked at the most famous house in the country—cooking for the Reagan and Bush families in the White House.

the best in the capital. slipped into a glossy bun that's baked in-house. he keeps thing simple. DC: Palena Café 3529 Connecticut Ave. —Tom Sietsema. he keeps thing simple. At Palena's intimate 30-seat café. and ultimately decided to open a place where food comes before fame. slathered with a garlicky mayonnaise.ultimately decided to open a place where food comes before fame. and accessorized with terrific sweet pickles. Washington Post food criti 3 of 12 ‹ previous | intro | next › Washington. At Palena's intimate 30-seat café. Washington. but he worked at the most famous house in the country—cooking for the Reagan and Bush families in the White House. It's shaped from . Consider his hamburger. Consider his hamburger. He left in 1991. DC (202-537-9250) Chef Frank Ruta may not be a household name. too—is exquisite and the price is right: $12 for a sandwich that comes with a side of pedigree. The combination—there's a hint of truffled Italian cheese in there. NW. It's shaped from hand-ground beef that includes Kobe-style trimmings when available. the best in the capital.

The combination—there's a hint of truffled Italian cheese in there. generously slathered with garlicky a ïoli. —Michael Bauer. but why mess with perfection? Note: The Hamburger is served at lunch and after 10 p. (near Franklin) San Francisco. The salt seasons the meat so the thick grilled patty releases a gush of liquid with each bite. and accessorized with terrific sweet pickles. Mountain Gorgonzola. salt and all. grilled onions. While Bay Area residents can't agree on politics—or the best burrito. or portobello mushrooms. for that matter—the general consensus is that this is the best burger. CA (415-552-2522) When anyone mentions hamburgers in San Francisco.m. The next day she and her crew grind the meat. too—is exquisite and the price is right: $12 for a sandwich that comes with a side of pedigree. only. Washington Post food criti San Francisco: Zuni Café 1658 Market S. —Tom Sietsema.hand-ground beef that includes Kobe-style trimmings when available. The burger can be ordered with Roth Kase Private Reserve (an Alpinestyle raw-cow's-milk cheese aged ten months). one name immediately comes to mind: Zuni Café. slathered with a garlicky mayonnaise. Chef/owner Judy Rodgers buys chunks of chuck and liberally salts the meat before going home at night. San Francisco Chronicle restaurant critic . It's served on a square of grilled rosemary-scented focaccia. and accompanied by house-made pickled zucchini ribbons and onion strips. slipped into a glossy bun that's baked in-house.

With swiveling wooden stools and paneled walls. and the dab of cool Thousand Island dressing brings the preparation into the realm of perfection. the bun is toasted on the griddle. Irv's. Waitresses know customers by name. and In-N-Out. the local institution feels vaguely clubby. The burger is a thing of beauty. —Patric Kuh. the layers of iceberg lettuce and pickle chips accentuate the sear of the patty. Pasadena. California Blvd.A. Los Angeles Magazine restaurant critic . Pasadena's Pie 'n Burger makes the best hamburger in L. CA (626-795-1123) Though it faces stiff competition from Tommy's.Los Angeles: Pie 'n Burger 913 E. The restaurant has stood on a leafy street near Cal-Tech and the Huntington Gardens since 1963. On the pie counter an old Hamilton Beach shake maker stands poised for duty.

And the dish trumps any of the very fine burgers served at Philly's many gastropubs. Overlooking Rittenhouse Square and. and bun. with cushy banquettes and booths and a central bar populated by beautiful people. Asbury Park Press restaurant critic . This 12-ounce hunk of well-seasoned beef comes with nutty Gruyère. 18th St. cheese. is relatively glamorous. The cheesesteak. at least at this address. —Andrea Clurfeld. indeed. caramelized onions. and a haystack of pommes frites. posh.Philadelphia: Rouge 205 S. Rouge. inside. Philadelphia. is all but forgotten. PA (215-732-6622) Take a look at what diners are eating at the sidewalk café tables—any time of day—and you'll notice a phenomenon unexpected in a city that lends its name to another meat sandwich: People in startlingly high numbers downing the Rouge Burger. it's a bona-fide Parisian café whose signature dish has become that perfectly proportioned combo of juicy beef.

and yellow mustard. when the kitchen makes 72 of them. (official burger time). GA (404-948-1175) Best flipped upside down and eaten as fast as humanly possible to manage its gushiness. a pinch of raw red onion. a slice of Kraft American cheese. A bullhorn sounds at 10 p. and the crowd goes wild. Crisp golden fries are part of the deal. Those who miss out on the burger can always come back for Sunday brunch. homemade ketchup. Atlanta Magazine restaurant columnist .Atlanta: Holeman & Finch 2277 Peachtree Road. Atlanta. bread-and-butter pickles. —Christiane Lauterbach. The glossy buns baked in their bakery next door contain two patties of freshly ground.m. grass-fed beef (chuck and brisket in equal proportions). the burger created by Chef Linton Hopkins is as much an event as it is a sandwich. Hesitate a minute and the limited quantity (they make only two dozen a night) will be gone.

nothing quite beats the decadence of Schlow's half pound of ground chuck. and piled high with crispy fried onions. And while Bartley's remains solidly good. tang. Note: The burger is available at lunch in the main dining room. so plan accordingly. a quirky little Harvard Square diner with a long list of patties named after local politicians (the "Mitt Romney") and Red Sox greats (the "Manny Ramirez"). Served on brioche. MA (617-426-1234) Boston's hamburger identity was long defined by Mr. crowned with melted Cheddar. you'll find it only at the bar. Radius executive chef/co-owner Michael Schlow. the Schlow Burger. Boston Magazine food editor . Then. last year. it's an intense jumble of oniony sweetness. —Amy Traverso.Boston: Radius 8 High St. this addictive stuffer took top honors at the 2008 South Beach Wine & Food Festival Burger Bash. and drip-down-your-chin juiciness. slathered with horseradish sauce. Boston. Named after its creator. but at dinner. umami. Bartley's burger was unseated by a posh upstart. Bartley's Gourmet Burgers.

about 80-percent lean. too. tomato. Chicago. Walton St. The meat is slightly sweet but with a beefy tang and richness that makes melted cheese utterly superfluous. All this in a splendid white-tablecloth. and hot. pickle. bistro-thin fries. applewood bacon.Chicago: Rosebud Steakhouse 192 E. Optional equipment includes cheese. What makes Rosebud's burger the very best? It starts with 12 ounces of custom-ground prime beef. IL (312-397-1000) Any city that glorifies steak as much as Chicago does is going to be a great burger town. caramelized onions. The burger is the star of the lunch menu and technically is only on the bar menu at night. or mushrooms . cherrywood-clad dining room. Standard features include lettuce. but the truth is that you can ask for the burger anywhere in the dining room and the waiters won't bat an eye. cooked with steakhouse precision and placed on a yielding but substantial pretzel bun that easily handles the burger's weight and juiciness.

New Orleans: Port of Call

838 Esplanade Ave. New Orleans, LA (504-523-0120) It comes as a surprise to some that one of the most popular restaurants in all of the French Quarter is a hamburger place that serves nothing remotely indigenous: no gumbo, no jambalaya, no seafood of any kind. It is called Port of Call, and yes, its burgers are that good. The beef is fresh-ground daily and hand-formed into burly patties that are char-scarred on the grill. This being New Orleans, there are some quirks: If you want grated Cheddar—in addition to the lettuce, tomatoes, onion, and pickles—it isn't melted, they serve the burger with baked potatoes on the side (no fries here), and chives and Bacon Bits are available at no charge. Many customers wash their burgers back with a nuclear-strength punch. An hour-plus wait for a table is a nearguarantee—and worth it. —Brett Anderson, The Times-Picayune restaurant crit

Santa Fe: Bobcat Bite

420 Old Las Vegas Highway, Santa Fe, NM (505-983-5319) National media attention is nothing new to Bobcat Bite; the fame goes back to 1953, when a Santa Fe rancher named Rene Clayton turned a roadside trading post (and former gun shop) into a 25-seat mom-and-pop diner. It's been operated over the years by a succession of couples. The meal of choice since the early days has been a grilled green-chile cheeseburger (including Cheddar, lettuce, tomato, and onion) using ten ounces of freshly ground Colorado beef made from choice whole boneless chuck, ground fresh daily. No one in the state makes a better version of this New Mexico favorite. You pay for it the same way they did 50 years ago: cash only. — Cheryl Alters Jamison & Bill Jamison, food and travel authors

Is McDonald‘s turning its back on the United States? If so, it wouldn‘t be totally surprising. In 2008, McDonald‘s Corp.‘s same-store sales were up 8.5% in Europe and 9% in Asia/Pacific/MidEast/Africa but only 4% in the U.S.

Is that why Switzerland gets the fabulous ―Der M‖ (at r.) and we don‘t? It looks even tastier than our Big N‘ Tasty, especially with that very European roll, what advertising identifies as Batavia lettuce and Emmental cheese. McD‘s is marketing the same sandwich in Spain (don‘t tell them they got stiffed on the Batavia lettuce) under the name El Mac (―La carne por excelencia―). Der M is just one of the sophisticated and enticing burgers that McDonald‘s is marketing around the world…but not here. When was the last time the chain added an excelencia burger to its U.S. menu? Enough with the salads and the SnackWraps! Here are 9 more global creations I‘d be happy to see at my McDrive-thru: • McFarm, Greece. Two all-pork patties, mustard sauce, processed cheese, iceberg lettuce, slivered onions, bacon and tomato on a sesame-seed bun. The Greeks apparently don‘t have a colloquialism equivalent to ―buying the farm,‖ which is unfortunate because they could have a good laugh when ordering this.

• Swiss Fondue (l.), Slovakia. One of the great things about McDonald‘s is that it is at once both global and local, resulting in a weird mix of languages on its menus. McD‘s must have cornered the market on Emmental cheese because it‘s part of the Swiss Fondue build and dozens of other Euro-burgers. However, the menu also includes the whimsically named Cheese & Fresh burger that subs in that pepper-Jack cheese that Slovakians love, I guess. Both are on bakery buns that are too good for Americans.

• The Winter Feast. or like two large but unappetizing chocolate cookies. It piles beef. really seedy bun. bacon and Emmental cheese on a cool. Italy. ―The Taste of the Tirolese Mountains‖ according to its ads. OK. it‘s more interesting than a regular U.S. like the burgers you really get from most drive-thru windows. tomato. too. Still.‖ You‘d have to try that. lettuce and cheese on a dark-brown bun that looks smashed.). yep.• Big Tasty Met Bacon (r. Sounds like ―When Harry Met Sally‖ doesn‘t it? Like a Big N‘ Tasty but with. it‘s a burger with our new friend Batavia lettuce plus ―streaky bacon. Meanwhile. this one (below) looks a little nasty. The Netherlands. Sounds as though it could be a previously undiscovered work of the Bard but no. • Ruis McFeast. the Italian Big Tasty Bacon burger is hyped as ―An Explosion of Rustic Goodness. Finland. which translates to cipollini onions and speck (smoked ham). United Kingdom. . McD‘s cheeseburger. • Tirolese Burger.

Belgium. lettuce. onions and lettuce on ―un pain ciabatta authentique. Not to be outdone by the Danes. Denmark. 2010 . but it sounds soggy. [and] rich tomato sauce all in a chive topped oval water split bun.) each have Cheddar cheese (Emmental apparently being withheld from the Danes). cheese made from Emmental.‖ I don‘t know what a water-split bun is. A cactus in a sombrero strumming a guitar in ads promoting this? You must be in Denmark! Also available is sandwich sibling Chicken El Maco. some Danish take on salsa and–that Mexican favorite–sourcream-chive sauce.‖ a deft swipe at anyone serving inauthentic ciabatta Top 10 Best Burgers Under P100 in Manila Published: Aug 27. • El Maco Grande.7:00pm . The ―Mexican inspired‖ sandwiches (at r. tomato.chorizo. the Flems strike back with a two-cheese (Emmental and Cheddar) burger with tomatoes. • Ciabatta Grande Deluxe. Lemme hear you say Ole.

daily Burger lowdown: Dayrit's Junior Burger Todo (P90) may be a miniature version of its bigger and pricier Cheeseburger Todo. no. Bonifacio Stop-over.m. but it still packs a lot of burger punch. Foodie fuss: More sesame seeds on the top bun. You can tell because they're crunchy and juicy.m. Fort Bonifacio Global City. and cucumber in it. Taguig Tel. The beef patty is grilled well and complemented by a special burger sauce that tastes a bit like gravy. . please. DAYRIT'S 31st Street.2. to 9 p. it has fresh tomato. Best of all. 818-0168 Open from 8 a. lettuce. The sesame seed buns likewise taste great.

Ketchup and mustard complete this power burger's ingredients. Sandwiched by sesame seed buns. it also contains a slice of tomato and lettuce.m.m. EDSA corner Shaw Boulevard. Mandaluyong City Open 10 a. 2010 .7:00pm .1. daily Tel. WHAM! BURGERS Level 5. to 9 p. Top 10 Best Burgers Under P100 in Manila Published: Aug 27. Shangri-La Plaza Mall. The beef patty more than makes up for it. It boasts of a char-grilled 1/3 pound beef patty that can put more expensive fastfood burgers to shame. no. 634-2093 Burger lowdown: The Wham! Burger (P98) is easily a carnivore's delight. Foodie fuss: The lettuce was a bit limp--but that may be beside the point.

8. however. Sandwiched by two plain buns. pickles. and one raw red onion ring. Wendy's Cheeseburger Deluxe (P65. . lettuce. the burger's taste is amped up by the raw onion ring. appreciate the very light coating of the ketchup-mayonnaise mix. WENDY'S With branches all over Metro Manila. We do. Foodie fuss: We wouldn't mind about a couple more raw onion rings.75) has a slice of cheddar cheese. Burger lowdown: To complement the beef patty. tomato.

The pickles are served separately. The burger's top bun also has a smattering of sesame seeds.m. MUSHROOMBURGER No. 10 a. SM City North EDSA. Quezon City with various branches Tel. MAX'S Level 2. North Avenue corner EDSA. 928-3405 Open from 10 a.7:00pm 6. Friday to Saturday Burger lowdown: Max's Chicken Burger (P71) features a chicken meat patty topped with creamy coleslaw and a slice of cheddar cheese. to 10 p. Loyola Heights. Quezon City . 2010 . no. to 9 p. Top 10 Best Burgers Under P100 in Manila Published: Aug 27. Foodie fuss: This is the only burger that's served with about half a cup of potato chips on the side..m. This is a delicious-yet-unexpected innovation from a restaurant that's identified as a fried chicken spot. 297 Katipunan Avenue. you don't have to wait in line for it. Plus.m.7.m. Monday to Thursday and Sunday.

to 10 p. 345-4442 Open from 11 a.Tel. Metro Manila with other branches in Annapolis.m.m. Not that we're complaining. daily Burger lowdown: The Mushroomburger Royal (P71) boasts of a hefty and juicy mushroom patty sandwiched by two plain buns. You add P5 if you prefer wheat buns.m. . pickles. 882-8888 Open from 7 a. cucumber. hardcore vegetarians can opt for the veggie patty for their burger. no. daily Burger lowdown: The Just Burger Best (P85) is a no-nonsense creation featuring a lean chicken meat patty sandwiched by plain buns and seasoned with a mayonnaise-ketchup mix. 5. The light buttery taste is good enough to make you forget that you're not eating meat. as well as some ketchup-mayonnaise mix.m. San Juan (723-4663). no. It contains cheddar cheese. San Juan. Plus. GOOD BURGERS 1/F Connecticut Carpark. Nothing gets in the way of its flavor. this isn't it yet. The patty is nicely moist. Quezon City (435-4663) and Pasig (9108138) Tel. Foodie fuss: If you're into eating healthy. a slice of tomato. Greenhills Shopping Center. to 11 p.

and lettuce. that's just us ublished: Aug 27.Foodie fuss: How about a slice of tomato served on the side? The yummy burger looks so lonely. The moist beef patty is sandwiched by sesame seed buns that are firm on the outside and fluffy inside. Quezon Memorial Circle. .7:00pm 4. tomato. no. TROPICAL HUT Elliptical Road. It also contains a slice of cheddar cheese. then again. our renewed appreciation for its burgers will help. 924-3413 Open from 7:00 am to 9:00 pm daily Burger lowdown: The Super Cheeseburger Classic (P90) lives up to its name. cucumber. Foodie fuss: We wonder why this burger chain isn't getting much buzz these days. 2010 . Hopefully. Quezon City with various branches Tel. A light coating of mayonnaise finishes it off. But. Diliman.

ph ranks 10 under P100 burgers in Metro Manila according to their bang-for-your-buck goodness. HUNGRY HIPPO Prince David Condominium. . You can ignore its vegetables (tomato. SPOT. Foodie fuss: We want this burger to stay just the way it is--pocket-friendly price and all. we learn that even the ancient Egyptians ate ground meat. which is composed of a meat patty sandwiched by two buns. 305 Katipunan Avenue. While the most popular kind features a beef patty. It's as if this little-known chain was spared from the economic upheavals of recent years. 434-1184 Open from 7:00 am to 10:00 pm daily Burger lowdown: It's hard to believe that Hungry Hippo's Cheeseburger (P67) is still priced so low. The real star is the patty. author Linda Stradley writes. has become the most universally loved fastfood. "Tracing history back thousands of years. no. the burger. Loyola Heights.3." That being said. and lettuce) and the sesame seed buns. The burger's culinary history is a complicated one. Quezon City with various branches Tel. In the website What's Cooking America. other meat and non-meat variants have also become favorites. This burger boasts of a perfectly grilled beef patty that's made more delicious by cheddar cheese and mayonnaise. and down through the ages we also find that ground meat has been shaped into patties and eaten all over the world under many different name. cucumber.

this one may not tickle your taste buds. Makati City with various branches Tel. Bottom line: The buns seal the deal. complementing the not-so-typical filling.10.m. mustard. . SANGO! Power Plant Mall.m. to midnight. no. Monday to Thursday and 11 a..m. Rockwell Center. to 11 p. Its plain bread buns are fluffy and firm. and ketchup. Foodie fuss: If you're used to Jollibee and McDonald's hamburgers. Friday to Sunday Burger lowdown: Sango!'s Hamburger (P95) contains a beef patty loaded with minced onion. 501-3106 Open from 11 a.

We got their Bacon Mushroom Melt Burger (P85) and found them tasty. SLAMMER BURGERS M2 Level. They're really quite filling. Food Choices.m. and the mushroom bits.m.m. The cheese spread blended nicely with the little patties. the chopped bacon.. Quezon City with various branches Open from 10 a. Trinoma Mall. to 9 p.m. Don't let their size or nondescript appearance fool you. Foodie fuss: We wonder why they can't just make one bigger burger instead of serving two small ones America's Best Burgers Prev 1 of 11 Next . to 10 p. Monday to Thursday and 10 a. Friday to Sunday Burger lowdown: These three-inch-wide burgers always come in twos..9.

tomato. merica's Best Burgers Prev 2 of 11 Next . In keeping with the righteous NoCal foodie movement. the old-fashioned burger here is grilled to order with hormone. lettuce. Best Sides: Fresh thick-cut fries and a chocolate milkshake made with San Francisco‘s own Double Rainbow ice cream. and pickle slices.and pesticide-free natural beef from Niman Ranch and is served on a toasted sesame bun with mayonnaise. red onion. ‗50s-style indie chain with five locations in the Bay Area.Photo: Anne Hamersky San Francisco: Burger Joint The Burger: Burger Joint is a retro.

pickles. Many die-hards favor the ―triple triple‖ combo: three patties stacked between molten slices of processed American cheese. all-beef patties at this café are dunked in a cast-iron skillet of boiling hot vegetable oil. and onions accompany. chili cheese fries. The meat turns crunchy as the fry cook flips it onto a squishy Wonder Bread bun. a Memphis institution since 1912. Best Sides: Add more vitamin ―G‖ to your diet with onion rings.Photo: Courtesy of Dyer’s on Beale Memphis: Dyer’s Burger The Burger: Grease is the word at Dyer‘s Burger. and a deepfried Twinkie. America's Best Burgers Prev 3 of 11 Next . Only mustard. The pounded-thin.

this one is a whopper. except for the fact that in a city famed for its love of red meat. made with ground chuck blended with trimming scraps from local meat purveyor L&L Packing Company. merica's Best Burgers Prev 4 of 11 Next . Chef Michael Taus bakes Czechoslovakian cottage-cheese-and-dill rolls from his grandmother‘s recipe to pair with an eight-ounce burger. Best Sides: Garlic-and-Romano cheese fries.Photo: Anna Knott Chicago: Duchamp The Burger: Duchamp is almost too upscale to deserve mention on this list.

Best Sides: Seafood gumbo and a custom-brewed Lüke Alt pilsner. caramelized onions.Photo: Courtesy of Frank Aymani New Orleans: Lüke The Burger: Lüke is an old-timey brasserie owned by chef John Besh. Well. But that‘s just gracious southern hospitality for you. America's Best Burgers Prev 5 of 11 . and thick slabs of country bacon from Alan Benton‘s famed smokehouse in the mountains of Tennessee. he does top it with ripe tomatoes. Emmentaler cheese. who may cook fancier fare at Restaurant August but knows that a 10-ounce Charolais top round beef patty and housemade onion roll doesn‘t need to be gussied up for a lunch date in downtown New Orleans.

but they still come out of the Pacific North woods for the hungry-man special burger at Quinn‘s Pub. America's Best Burgers Prev 6 of 11 Next . an inviting Capitol Hill eatery where eight ounces of natural Painted Hills Ranch beef is topped with cheddar. and mayonnaise. bacon. Best Sides: More meat! Order the wild boar sloppy joe and beef tongue hash with a fried duck egg.Next Photo: Jason Alfred Seattle: Quinn’s Pub The Burger: Gastropub is one of those words real lumberjacks can‘t say with a straight face.

pico de gallo. . And it‘s worth stopping by on performance nights for live country by Lucas Hudgins & the First Cousins. This is Austin. homemade chile con carne.Pin It Photo: Kelly Kirlin Austin. TX: Ranch 616 The Burger: Ranch 616 is a South Texas–style diner that skews south of the border. after all. The Chili and Fritos burger is quite the Tex-Mex mix: it‘s an eight-ounce beef patty stuffed with crunchy corn chips. Best Sides: The Texas Gulf Coast crab-and-fish cake and the fried fruit pies with Mexican vanilla ice cream. and tomatillo crema. It‘s filled daily with different fixings—Maytag blue. cremini mushrooms. But it‘s the Framed Burger that takes the prize. jalapeño peppers—on the short-order cook‘s whim.

. Best Sides: Shoestring fries. this breezy spot on Oahu‘s North Shore has been serving up half-pound charbroiled burgers topped with slices of fresh.America's Best Burgers Prev 7 of 11 Next Photo: Kaori Sonoda Hale’iwa. HI: Kua’Aina Sandwich Shop The Burger: For the past 25 years. island-grown avocado or pineapple on a kaiser roll to the protein-loving surf crowd that hangs ten on the Pipeline.

America's Best Burgers Prev 8 of 11 Next Photo: Len Depas/Kemble Park Tavern Washington. . Byrd Mill grits. on a brioche bun. And for those who need a little extra pork in their barrel. D. lobbyists are loving the street cred they garner by trading prime rib for America‘s favorite combo meal. cozy Kemble Park Tavern serves a terrific brunch burger. On weekends. there‘s ―whole hog‖ sausage on the side. topped with a fried egg and bacon. Best Sides: Breakfast potatoes.C.: Kemble Park Tavern The Burger: Given the New Austerity sweeping the capital. scrapple.

the house special. no-attitude Black Iron Burger Shop.merica's Best Burgers Prev 9 of 11 Next Photo: Jeanmarie Theobalds. farmhouse cheddar. the grass-fed beef burger is paired with heritage bacon. chef Peter Hoffman‘s sleeker homage to down-home cooking. salt cod hush puppies and crispy onion rings at Back Forty. and a big sour pickle. the Iron Horse. Best Sides: Rosemary fries and a malted milkshake at Black Iron. A few streets north at Back Forty. . is made with two patties topped with grilled onions and horseradish cheddar. Britany Westphal New York City: Back Forty and Black Iron Burger Shop The Burgers: The Big Apple‘s best burgers are being served up a few blocks from each other in the East Village. spicy ketchup. At the gritty.

a half-pound Angus beef patty with crispy shallots. bacon. honor roll students. NH: Murphy’s on the Green The Burger: Murphy‘s on the Green is a classic Yankee college town tavern fraternized in equal number by tweedy Dartmouth professors. Best Sides: Cheddar cheese fritters. fried buffalo wings.‖ . rémoulade. and townie regulars. Members of the Theta Delta Chi chapter pledge their loyalty to the Murph Burger.America's Best Burgers Prev 10 of 11 Next Pin It Photo: Courtesy of Murphy’s Hanover. and New England clam ―chowda. and plain old American cheese.

Fast.S. . We seek distributors worldwide.A.Burger King Corporation .Company Profile. History of Burger King Corporation Ads by Google Franchise Opportunity Business Brokerage & Consulting Start a Business Advising Franchise unitedfranchisegroup.com Zoomerang Online Surveys . . free. flexible.Supply clients the right tools at the right time.The world`s leading hotel program. Company Perspectives: Burger King is flamed-broiled burgers. Business Description.www. High quality. Information. Florida 33126 U. www. easy.Zoomerang.com 5505 Blue Lagoon Drive Miami.micetek. www. History.Customize & send surveys and polls.com Development Board service . fries and soft drinks at a good value.com/TransWorld Falls View Restaurant View Niagara Falls While you dine. served quickly and consistently by friendly people in clean surroundings. Background Information on Burger King Corporation Ads by Google Hotel Express Int. .hotelexpress.

sold the company to a group of investors led by Texas Pacific Group in late 2002.icecubecafe. . In fact. Diageo plc. By the time they sold their company to Pillsbury in 1967.memphis. a burger with sauce. Burger King's parent. The story of Burger King's growth is the story of how franchising and advertising developed the fast-food industry. In the late 1990s and into the new millennium. (McDonald's burgers at the same time.com International MBA Program Ready for MBA with a Global Mindset Financial Aid Available. for big appetites. The company serves 15. Apply Now! www. The company franchises more than 10. whose original southern California drive-in started the McDonald's empire. with locations in all 50 states and 56 countries. lettuce.watermarkrestaurant. Rapid Growth under Company Founders: 1954-67 Miami entrepreneurs James McLamore and David Edgerton founded Burger King Corporation in 1954. McLamore and Edgerton began in 1954 with a simple concept: to attract the burgeoning numbers of postwar baby boom families with reasonably-priced. pickles. after industry leader McDonald's.com ICE Cube Cafe Franchise The Coolest Award Winning Ice Cream Master Franchise opened Globally www. In 1957 they expanded their menu with the Whopper. But prices were kept low: a hamburger cost 18 cents and the Whopper 37 cents. 1954 was the same year Ray Kroc made his deal with the McDonald brothers.34 Storey's above Niagara Falls. broiled burgers served quickly. Burger King was plagued by falling sales and deteriorating franchisee relationships. Burger King had become the third largest fast-food chain in the country and was on its way to second place.) In 1958 they took advantage of an increasingly popular medium. cheese. trailing only McDonald's.455.7 million customers each day and over 2. McLamore and Edgerton tried to give their Burger King restaurants a special edge.000 for a chainwide total exceeding 11. cost only 15 cents. and tomato. Five years later.400 restaurants and owns about 1. however. television: the first Burger King television commercial appeared on Miami's VHF station that year. The idea was not unique: drive-ins offering cheap fast food were springing up all across America in the early 1950s. www. they were ready to expand their five Florida Burger Kings into a nationwide chain. Burger King became the first chain to offer dining rooms (albeit uncomfortable plastic ones).edu/internationalmba Burger King Corporation is the second largest fast-food chain in the United States.4 billion Burger King hamburgers are sold each year across the globe.

they continued to acquire Burger King piecemeal. Franchising was booming in the late 1950s because it allowed companies to expand with minimal investment. the Trotters made Pillsbury a $100 million offer for Burger King. buying nine stores in Boston and 13 in Houston. By 1971 they owned 351 stores with sales of $32 million. build as many stores as they liked. or diversify. In 1970. McLamore and Edgerton took their initial payments (which varied with the territory) and their cut (as little as 1 percent of sales) and left their franchisees pretty much on their own. By 1967. and franchising seemed to be the best way to take their concept to a broader market. Pillsbury. prepared-foods giant Pillsbury. could do what they wanted to in their territory: buy land. The buyers of these territorial rights. By 1972 they were ready to take over altogether. The Trotters didn't stop there. By 1969. They bought out two steak house chains (taking the name of one of them. McLamore and Edgerton attracted their investors by selling exclusive rights to large territories throughout the country. and decided on their own food suppliers. The system worked well. they suggested that both Pillsbury and Chart House spin off their Burger King holdings into a separate company. many of them large businesses themselves. sell part of the territory to other investors. Difficulties with Franchisees Under Pillsbury: 1967-77 The Burger King franchising system also worked well for the franchisees. when the partners decided to sell the company they had founded. allowing Burger King to expand rapidly. agreeing to give up its Boston holdings in exchange for the right to keep its Houston properties. But some large franchisees thought they could run their Burger King outlets better than a packaged-goods company. When that initiative failed. Pillsbury wasn't about to allow Chart House to gain other valuable territories. By the time Pillsbury executives got to town the next day. established their own training and inspection programs. It was up to the new owner. Billy Trotter flew to Chicago in a snowstorm to buy the territory for $8 million. . when the franchisees in control of the lucrative Chicago market decided to sell out. However. the chain included 274 stores and was worth $18 million to its buyer. Under the early Burger King system. was in providing a consistent company image. Eventually Chart House compromised. Where this loosely knit franchising system failed. citing Pillsbury's contractual right of first refusal to any sale. Chart House). they found they had been bested by their own franchisee. some of the company's large investors expanded at a rate rivaling that of the parent company. Wealthy Louisianans Billy and Jimmy Trotter bought their first Burger King outlet in 1963. they controlled almost two dozen Burger King restaurants and went public under the name Self Service Restaurants Inc. to crack down on franchise owners. When that also failed.By 1959 McLamore and Edgerton were ready to expand beyond Florida. a major flaw in a chain that aimed to attract customers by assuring them of what to expect in every Burger King they visited. Like many other franchisers. however. Because McLamore and Edgerton didn't check on their franchises and used only a small field staff for franchise support. the chain was noted for inconsistency in both food and service from franchise to franchise. They sued the Boston franchisees who had sold to Chart House.

Land ownership is advantageous because land is an appreciating asset and a source of tax deductions. Burger King began to expand abroad early in the decade. a process that was especially felt among the franchise holders. In 1974 management required franchisees to use the "hospitality system. it stipulated that franchisees may not own other restaurants and must live within an hour's drive of their franchise. When Florescue bought eight units in California anyway. Smith's new franchise regulations were soon put to the test. Smith sued successfully. Awarded only to individuals. . Fast food and franchising were unfamiliar outside the United States. However. In 1975 Burger King reintroduced drive-through windows. to speed up service." or multiple lines. based on the franchise contract. Smith began by introducing a more demanding franchise contract. Drive-throughs proved to be a profitable element. and Smith again effectively asserted Burger King's control in court. Florescue then signed with Arby's. the company owned only 34 percent of the land and buildings in which its products were sold.New Leadership: 1977-80 Pillsbury's suit was proof of a new management attitude that involved more central control over powerful franchisees. the creator of New York City's famous Automat restaurants. Florescue. had recognized that nostalgia alone couldn't keep the original fast-food outlets alive and had decided to turn them into Burger Kings. At home the company focused on attracting new customers. but more importantly it gives the parent company a landlord's power over recalcitrant franchisees. Donald Smith was third in line for the top spot at McDonald's when Pillsbury lured him away in 1977 with a promise of full autonomy in the top position at Burger King. When Smith came on board at Burger King in 1977. making international expansion a challenge. accounting for 60 percent of fast food sales throughout the industry by 1987. While original stands had offered this convenience. it wasn't until Pillsbury brought in a hard-hitting executive from McDonald's that Burger King began to exert real control over its franchisees. effectively stopping franchisees from getting too big. He also created ten regional offices to manage franchises. Like many other chains. Smith limited Florescue to building four new stores a year in New York and insisted that he could not expand elsewhere. chairman of Horn & Hardart. not partnerships or companies. leasing stores to franchisees and demanding a high degree of uniformity in return. His strong response to the upstart franchisee kept Horn & Hardart from becoming too strong a force within Burger King. but within a decade the company was represented in 30 foreign countries. it had gradually been eliminated as Burger King restaurants added dining rooms. Burger King's international operations never became as profitable as anticipated. Smith used it to "McDonaldize" the company. Increasing control over franchisees was not the only change Pillsbury instituted at Burger King during the 1970s. Barry W. McDonald's had taken a different approach from the very beginning. While Burger King had grown by selling wide territorial rights.

Louis P.www. and less plastic. opening a training center in London to serve its European franchisees and employees in 1985. and steak--to increase Burger King's dinner trade. After McDonald's proved that breakfast could be a profitable fast-food addition (offering a morning meal spread fixed costs over longer hours of operation) Smith began planning a breakfast menu in 1979. Troubled Times in the 1980s Smith left Burger King in June 1980 to try to introduce the same kind of fast-food management techniques at Pizza Hut.sunflowermedical. primarily in response to the appeal that newcomer Wendy's had for adults. Jay Darling. chicken. to be followed less than two years later by Jerry Ruenheck. Smith mandated a yearly two-day check of each franchise and frequent unscheduled visits. but it wasn't until the Croissan'wich in 1983 and French Toast sticks in 1985 that Burger King had winning entries in the increasingly competitive breakfast market.uk Smith also revamped the corporate structure. and by 1979 had brought the company's share of outlet ownership from 34 percent to 42 percent. boosting traffic 15 percent. but frequent changes at the top for the next several years meant inconsistent management for the company. resigned a little over a year later to take on a Burger King franchise himself. though.Ads by Google Distributors Required . Burger King did not stand still under its succession of heads. Chart House. But Burger King had a problem with breakfast: its flame broilers could not be adapted as easily to breakfast entrees as McDonald's grills could. Smith also turned his hand to the food served in his restaurants.milesplatts. Smith urged development of entrees that could be prepared on existing equipment instead of requiring special grills. Ruenheck resigned to become a Burger King franchise owner in Florida less than two years after that. a conservative former chief financial officer. Besides developing successful breakfast entries. He also decided that the company should own its outlets whenever possible. and his successor.co. Neeb succeeded Smith. He introduced the french fry technique that produced the more popular McDonald's-type fry.uk Coil Bobbins . such as wood and plants. took over in 1987. less fatty image. Burger King reached its number-two position within two years of his departure.UK Medical Furniture Manufacturer All International Territories www. when he left Pizza Hut in 1983 he moved into the chief executive position at the franchisee that had given Burger King so much trouble.co. Burger King also completely computerized . Offering the broadest menu in fast food did the trick.) By following in Smith's general direction. he introduced specialty sandwiches--fish. A more radical expansion for the Burger King menu came next. (Ironically. In 1985 the firm began a $100 million program to remodel most of its restaurants to include more natural materials. Charles Olcott. The company continued to expand abroad. Burger King added salad bars and a "light" menu to meet the demand for foods with a healthier. To attack Burger King's inconsistency problem. In 1978.Inch and Metric coil bobbins 5000+ standard range available . replacing eight of ten managers with McDonald's people. ham and cheese. He began testing breakfast foods in 1978.

Burger King was forced to pull its $30 million introductory ad campaign. The hard sell approach moved the chain into second place. Average sales per restaurant reached the $1 million mark in 1985. However. Burger King was still bedeviled by the old complaint that its service and food were inconsistent.7 billion. and Grand Met bought Pillsbury in January 1989 for $66 a share. All three of the major campaigns that followed ("Herb the Nerd. Chicken Tenders. "We do it like you'd do it" followed in 1988. Pillsbury became part of Grand Met's worldwide system of food and retailing businesses with well-known brand names.its cooking and cash register operations so even the least skilled teenager could do the job." and "Fast food for fast times") were costly flops. devised a counterplan that included spinning off the troubled Burger King chain to shareholders. Turnaround under Grand Met in the 1990s . with little more success. and Burger King took an even more aggressive advertising line. the company faced another kind of threat.500 restaurants in all 50 states and 30 foreign countries gave it a strong presence. After Smith's departure in 1980. In Burger King. and Wendy's challenged Burger King to a taste test (a challenge that was pointedly ignored)." "This is a Burger King town. Burger King agreed to phase out the offending ads gradually. In 1982 Burger King directly attacked its competitors. In 1985 the company added just over half an ounce of meat to its Whopper. though. Parent Pillsbury. That ad campaign emphasized as a selling point what many saw as a drawback at Burger King: longer waiting times. sales were up 19 percent. or approximately $5. making the 4. Even some of Burger King's post-Smith successes caused problems. Both competitors sued over the ads. the target of a hostile takeover attempt by the British company Grand Metropolitan plc. So the company turned to the harder sell "Aren't you hungry for Burger King now?" campaign. Pillsbury's plan didn't work. only to find it that it could not obtain enough chicken to meet demand. In 1988. Burger King's old "Have it your way" campaign ("Hold the pickles. Special orders don't upset us.000 in 1982. The meatier Whopper and the $30 million ad campaign using celebrities to promote it failed to bring in new business. The company introduced another successful new entree. In return for dropping the suits. but Burger King came out the winner in its $25 million "Battle of the Burgers": the average volume of its 3. special orders did upset store owners.000 to $840. under Smith's emphasis on speed and efficiency. alleging that Burger King's grilled burgers were better than McDonald's and Wendy's fried burgers. changing ad styles with almost the same frequency that it changed managers. Grand Met got a company with some problems but whose 5. hold the lettuce. in 1986.500 stores rose from $750. and pretax profits rose 9 percent. but at the cost of new debt that would lower the price of both Pillsbury and the new Burger King shares.") was no longer appropriate. Such a plan would have made it highly unlikely that Burger King could ever have overcome its ongoing problems of quality and consistent marketing.2 ounce sandwich slightly larger than the quarter-pound burgers of its competitors. The company played out its identity crisis in public. Burger King's subsequent ad campaigns were not as successful.

Grand Met's first move was to place Barry Gibbons, a successful manager of pubs and restaurants in the United Kingdom, into the CEO slot. Soon thereafter, in September 1989, Grand Met acquired several restaurant properties from United Biscuits (Holdings) plc, including the Wimpey hamburger chain, which included 381 U.K. outlets and 148 in other countries. By the summer of 1990, 200 Wimpeys had been converted to Burger Kings, bolstering the company's foreign operations, a traditional area of weakness. Over the next several years, Burger King was much more aggressive with its international expansion, with restaurants opening for the first time in Hungary and Mexico (1991); Poland (1992); Saudi Arabia (1993); Israel, Oman, the Dominican Republic, El Salvador, Peru, and New Zealand (1994); and Paraguay (1995). By 1996, Burger King had outlets in 56 countries, a dramatic increase from the 30 of just seven years earlier. While Gibbons was successful in accelerating the company's international growth, overall his tenure as CEO (which lasted until 1993) brought a mixture of successes and failures. In the new product area, the hamburger chain hit it big with the 1990 introduction of the BK Broiler, a broiled chicken sandwich aimed at fast-food eaters seeking a somewhat more healthful meal; soon after introduction, more than one million were being sold each day. Also successful were promotions aimed at children. In 1990 the Burger King Kids Club program was launched nationwide, and more than one million kids signed up in the first two months. The program continued to grow thereafter; by 1996 membership stood at five million and the number of Kids Club meals sold each month had increased from 6.1 million in 1990 to nearly 12 million. Also hugely successful was the long-term deal with Disney for motion picture tie-ins signed in 1992. Through 1996 (when Disney broke with Burger King to sign a deal with arch-rival McDonald's), the partnership had involved such Disney smashes as Beauty and the Beast, The Lion King, and Toy Story. In 1996 Burger King signed a new Hollywood deal with DreamWorks SKG. Gibbons also worked to improve Burger King's profitability, under a mandate from Grand Met. Soon after taking over as CEO, Gibbons cut more than 500 jobs, mainly field staff positions. He also began to divest company-owned stores in areas where the company did not have critical mass, particularly west of the Mississippi. Doing so helped increase profitability, although some observers charged that Gibbons was selling off valuable assets just to improve the company numbers. In any case, during Gibbons's last two years as CEO, profits were about $250 million each year, compared to at most $175 million a year under Pillsbury. Where Gibbons certainly failed, however, was in addressing Burger King's longstanding problem with image. The advertising program was still in disarray as the firm hired in 1989, D'Arcy Masius Benton & Bowles, created still more short-lived campaigns: "Sometimes you've gotta break the rules" (1989-91), "Your way right away" (1991), and "BK Tee Vee" (1992-93). Neither franchisees nor customers were endeared to any of these. In the face of the improving profitability of the corporation, such marketing blunders led to abysmal chainwide sales increases, such as a 3.6 percent increase for fiscal years 1991 and 1992 combined. In mid-1993, James Adamson succeeded Gibbons as CEO, a position for which he had been groomed since joining Burger King as COO in 1991. Adamson, who actively sought out the

advice of company co-founder James W. McLamore, moved to build on Gibbons's successes as well as rectify the failures. Adamson's most important initiatives addressed key areas: quality, value, and image. He improved the quality of products, such as in 1994 when the size of the BK Broiler, the BK Big Fish, and the hamburger were increased by more than 50 percent. He belatedly added a "value menu" after most other fast feeders had already done so, as well as offering special promotions, such as the 99¢ Whopper. Related to both value and image was the long-awaited successful ad campaign, "Get your burger's worth," created by Ammirati Puris Lintas, and emphasizing a back-to-basics approach and good value. The focus on the basics also led to a simplification of what had become an unwieldy menu--40 items were eliminated. The new focus was on burgers--with an emphasis on flame broiling--fries, and drinks. By early 1995, Adamson's program was paying off as same-store sales increased 6.6 percent for the fiscal year ending March 31, 1995. Morale among the franchisees had improved dramatically as well. Adamson resigned suddenly in early 1995 to head Flagstar Cos. of Spartanburg, South Carolina. In July, Robert C. Lowes, who had been chief officer for Grand Met Foods Europe, was named CEO. Later that same year he became chairman of Burger King and gained a position on the Grand Met executive committee, a move that signaled Grand Met's commitment to Burger King and the strength of the company's resurgence. Lowes soon set some lofty goals for Burger King, including $10 billion in systemwide sales by 1997 (from $8.4 billion in 1995) and 10,000 outlets by the year 2000 (there were 8,455 in mid-1996). Management changes continued however, and in 1997 Dennis Malamatinas, an executive from Grand Met's Asian beverage division, was named CEO. Later that year, Grand Met merged with Guinness, creating Diageo plc. The new company's main focus was on its beverage and spirits business, leaving many analysts speculating that Diageo would eventually sell or spin off Burger King. Despite the changes in ownership and management, Burger King remained dedicated to beating out its main competition, McDonald's. It introduced the new Big King burger to compete with McDonald's Big Mac and also launched a $70 million french fry advertising campaign that included a free fryday give-away at its restaurants. By 1998 both domestic and international sales were increasing, along with market share. Bolstered by its recent success, Burger King launched an aggressive restructuring campaign that included adopting a new logo; store remodeling with cobalt blue, red, and yellow décor; new packaging; drive-thru lane upgrades; and a new cooking system. The firm also began to turnaround its European operations, exiting the highly competitive French region and focusing on growth in the UK, Germany, and Spain. The company's Latin America, Mexico, and Caribbean operations also experienced modest growth. Problems Lead to a Sale: 1999 and Beyond Burger King's success however, proved to be short-lived. In 1999, the company was forced to recall a promotional toy, the Pokemon ball, after it was discovered to be potentially dangerous for children. A class-action suit followed, claiming the company acted in a negligent fashion when it distributed the toy in its kids' meals. The firm's relationship with its franchisees was also deteriorating, marked by a highly publicized lawsuit with franchisee La Van Hawkins. The Detroit-based entrepreneur claimed Burger King failed to help him develop and purchase

restaurants as promised. The firm counter-sued claiming that Hawkins owed the company $16 million. Civil rights activist Al Sharpton threatened to boycott Burger King as a result. To top it off, sales were falling, and the company experienced yet another change in management. Malamatinas left the firm in 2000, and Colin Storm was named interim CEO. By this time, Burger King's parent company had announced plans to exit the fast food industry. Many franchisees were experiencing financial difficulties--including bankruptcy--and had long since complained that Diageo had neglected Burger King in favor of its premium liquor business. These franchisees adopted an internal program entitled "Project Champion" aimed at forcing a sale of Burger King. They approached J.P. Morgan Chase & Co. to orchestrate the deal, and, eventually, Diageo agreed to sell Burger King. Texas Pacific Group along with Bain Capital and Goldman Sachs Capital Partners purchased the fast food chain for $1.5 billion in late 2002. According to a 2003 Feedstuffs article, Burger King's franchisee association claimed that the new ownership marked "the first day of a new era" for Burger King. CEO John Dasburg--elected in 2001--also felt the acquisition had significant benefits. In the aforementioned article Dasburg remarked that it would "better position Burger King as a healthy, independent company for the first time in more than 30 years." While company management appeared optimistic about its future, Burger King remained embroiled in intense competition. The firm continued to launch new advertising campaigns and in 2002 introduced the BK Veggie, the first fast food veggie burger to be offered in the United States. Also in 2002, Burger King revamped the BK Broiler, making a new product they called the Chicken Whopper. The firm also moved into its new world headquarters in Miami, dedicating the building to founders Edgerton and McLamore. Management focused on capturing a larger portion of the fast food market. However, only time would tell if Burger King's new independence would help realize its goals. Principal Competitors: McDonalds Corporation; Wendy's International Inc.; Yum! Brands Inc.

Chronology
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Key Dates: 1954: James McLamore and David Edgerton establish Burger King Corporation. 1957: The Whopper is launched. 1959: The company begins to expand through franchising. 1967: Burger King is sold to Pillsbury. 1977: Donald Smith is hired to restructure the firm's franchise system. 1982: Burger King claims its grilled burgers are better than competitors McDonald's and Wendy's fried burgers. 1989: Grand Metropolitan plc acquires Pillsbury. 1997: The firm launches a $70 million french fry advertising campaign; Grand Metropolitan merges with Guinness to form Diageo plc. 2002: A group of investors led by Texas Pacific Group acquire Burger King.

Additional Details

Stan." Business Week. 1. Roadside Empires: How the Chains Franchised America.. Louise. Emerson. October 16. "Turning Up the Gas at Burger King: It's Discounting Burgers and Dumping Yet Another Ad Campaign." Advertising Age. 1993. 2000. December 15. Pete Engardio." Business Week. "Burger King Campaign Is Promoting New Fries." Times." Houston Chronicle. Collins. Petersburg Times. 1996. "Burger King: Whopper on the Rebound?. "Burger King Takes Aim at First Place in Fast-Food Battle. 7. p. Jeff. 1994. Hays. New York: Viking. B4. D12.     Private Company Incorporated:1954 Employees:340." New York Times." Feedstuffs. May 10. p. June 17. The New Economics of Fast Food. 104. p. 1996. Howard. Greg. 29. November 10." Restaurant Business. Rod. 1990. "Can They Save the King?. Luxenberg. Judann. 1979. p. Gail. DeGeorge. "BK Looks toward Recovery under New Chief Adamson. "Burger King Sizzles in Wake of Arch Deluxe. p. New York: Van Nostrand Reinhold. 14. "Burger King Sale as Much Hot Temper as Cool Cash. Smith. 1993. "Burger King Gets Back to Basics in Latest Ad Blitz." New York Times. Marilyn. February 7. December 29. "Burger King Executives Struggle to Turn Around Company. 1989. 62-67. Kramer. December 11. Glenn. January 30. 1995." Brandweek. "Burger King Overhaul Includes Refocus on Whopper. "Trying to Get Burger King Out of the Flames: It's a Tall Order. 1993. pp. "GrandMet Fails to Stop Rumour Mill Biting Into Burger King. 1995. Pollack. p. 2003." St. July 12. 2002. Even for Grand Met Hotshot Gibbons. Fast Food: The Endless Shakeout. Robert L." Nation's Restaurant News.7 billion (2002) NAIC:722211 Limited Service Restaurants Further Reference                   Alva. p. Richard. Mark.. May 1. 22. Thomson." Wall Street Journal. April 29. ------. 1994. "Grand Met Names a Chief for Burger King Subsidiary: Turnaround Is Seen at Fast Food Chain." Miami Herald. p. August 2. p. Walker. January 6. Elaine." Nation's Restaurant News. 1985. C2. Farrell. Theresa. and Brian Bremner. 5.000 Sales:$1. Harrington. 1999 . 3. p. Richard. Gibson. "Burger King's Sale Readies System for Growth. Constance L. New York: Lebhar-Friedman Books. November 15. p. 1997. Maremont.

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