Burger King SWOT Analysis 2024: In-Depth Analysis Report

Burger King has reached every corner of the globe with their creative marketing and food. This burger joint can be found from a third-world country to a first-world country. We will get to know more about the company and more in this Burger King SWOT analysis.

Burger King: Company Overview

The company will reach its 80th birthday in the next year, as it was founded back in 1954 by Keith J. Kramer and Matthew Burns. According to the latest data, Burger King has over 18,700 locations in 100 countries.

The company is majority-owned by private equity firm 3G Capital, generating annual system-wide sales in 2022 of $1.9B with approximately 6,400 employees globally.

Product & Services of Burger King
Hamburgers | Chicken | French fries | Onion rings | Soft drinks | Milk shakes | Salads | Desserts | Breakfast

Burger King Competitors
KFC | Pizza Hut | Domino’s | McDonald’s | Subway | Smokin Joes Pizza | Taco Bell | Papa Johns Pizza

Did You Know?

The original Burger King mascot was a burger-headed king named “Kurley Q. Burger” in 1955 before being changed to just “The King” in 2004.

Strengths – Burger King SWOT Analysis

Worldwide Expansion: According to the latest data until 2023, Burger King has over 18,700 locations spanning 100 countries. As a result, it helps and allows the joint to tap growth in emerging markets like India and China, showcasing its ability to adapt menus and strategies to diverse markets. Besides, it also helps the company increase its overall financially strong and healthy cash flow.

Strong Marketing: Not just the history and overall presence of the company but also strong marketing campaigns have made it impossible for people to ignore Burger King’s strong marketing. The classic “Have It Your Way” campaign started back in 1974 and is still going strong. Besides, introducing the mascot, The King, in early 2000 and adapting the “Whopper Detour” campaigns have helped the company to increase visibility among consumers.

Strategic Business Model: After McDonald’s, one of the successful franchise models was pulled off by Burger King. As a result, the model itself helped the company to expand rapidly without significant capital investments. Almost half of the sales come from the franchise model, which gives the idea of how powerful it can be to maximize efficiency by bringing in more income.

Weaknesses – Burger King SWOT Analysis

Unbalanced Revenue Portfolio: If we analyze and deep dive into the balance sheet and income statement of Burger King from the last few years, the data shows that the revenue portfolio is very unbalanced. Not just that, most of the revenue also comes from some specific countries, such as the USA or European countries, which makes it difficult for the company to operate and survive during difficult times.

Limited Offerings: Even though it’s a burger joint and is supposed to be one of the best compared to competitors with its new and innovative offerings, it’s really limited in reality. As a result, it’s restricting people and potential customers from trying, and the customer retention level is going down. It can eventually hurt the company when there are new local and international players with new and better offerings.

Low Franchisee Control: As per the latest data, Burger King only owns a few percent over fifty, which shows the level of imbalance and void of control there because of their franchise model. Because of that, there are varying quality and service level issues arising across franchises. It is already resulting in customer trust issues and negatively affects brand perception.

Opportunities – Burger King SWOT Analysis

Better Offerings: The company’s opportunity lies in expanding its menu to cater to evolving consumer preferences. It has a significant opportunity to introduce and capitalize on the growing demand for plant-based meats. Already in the American region and other European regions, the demand is growing, as well as vegan options, so it is high time to do that, which will increase sales for that category.

Strategic Partnerships & Collaboration: Partnerships with well-known brands could differentiate Burger King’s offerings, which has been doing a great job ever since. Collaborating with local food delivery services in every country improved accessibility around the globe and convenience for customers, and that’s not just in a few countries, resulting in a considerable increase in sales even during the pandemic.

Market Expansion: As we know, the company’s presence is only available in a hundred countries, which gives the opportunity to expand to market beyond just these countries. The company can grow its presence in those countries where it has a strong presence to create an absolute monopoly and slowly expand to other countries.

Threats – Burger King SWOT Analysis

Controversies: The company has been going through a lot of controversies in recent times. Three years back, it was linked to deforestation in the Amazon rainforest, prompting concerns among environmentally conscious consumers. Two years back, it was about the 2021 POSEIDON mismarketing scandal regarding food quality claims in Europe. And, in 2022, it was about the pride campaign and being political. It seems like controversies have become a part of the company now.

Cutthroat Competition: The food and overall burger QSR industry has become highly intensely competitive in recent years. If we look at other competitors’ data, Burger King trails category leader McDonald’s considerably in metrics like units and sales, facing pressure from chains like Wendy’s and Shake Shack. Not to mention, other competitors’ successful promotions and diversified menu offerings often intensify competitive pressures on Burger King.

Boycott Issues: Political issues have resulted in boycott backlash for Burger King, like its expansion into Crimea after Russia’s annexation, which spurred Ukrainian boycott calls in 2014. Recently, the company has come into the issue again because of giving free food to Israel’s military, and people started boycotting it. The sales have been dropping, and so has the reputation.

[Bonus Infographic] SWOT Analysis of Burger King

Recommendations for Burger King

Here are some recommendations for Burger King.

• Burger King has an opportunity to appeal to changing consumer preferences for healthier and more diverse fast food options.
• There are enough opportunities to expand the company to other developing countries.
• Avoid potential political issues and other several issues that can create controversies.
• The strategic partnership will help bring more revenue and visibility.

Frequently Asked Questions (FAQs)

Final Words on Burger King SWOT Analysis

Burger King has strengths in its widespread global presence and creative marketing, which fuel steady performance, but it faces weaknesses like limited offerings and low franchise control. Leveraging opportunities around partnerships, offering expansion into more diverse and healthier choices, and targeted emerging market penetration can help overcome threats and controversies.

References

• Wikipedia contributors. (n.d.). Burger King. Wikipedia.