Burger King revealed plans to invest USD400 Million throughout the next two years on advertising and renovating its restaurants amid a strategy set to boost lagging U.S. sales. The chain, owned by Restaurant Brands International (NYSE: QSR), unveiled a turnaround plan for its U.S. business at its annual franchisee convention.
“We believe now is the time to make a significant investment to accelerate the work given the quality of the team, focus of the plan, commitment of our Franchisees, and the opportunity that clearly exists for our iconic brand to Reclaim the Flame and be the first choice for a high-quality meal, an exceptional experience, and a great value,” Jose Cil, CEO of Burger King parent company Restaurant Brands International, said in a statement.
The rebrand is expected to bring life back into the brand. US sales plummeted in the most recent quarter which ended in June, a 0.3% dip in the previous year. However, rivals were actually up within the same period as McDonald’s at 3.7% and Wendy’s at 3.5%. CVS expects the fund to start paying off by 2025.
“We might see remodels start to hit the market mid-2023 and going forward. It should really be a gradual ramp of the business over the course of the couple of years,” Cil told CNBC.
Additionally, USD30 Million will go towards further development of its mobile app through 2024. Burger King’s menu will also be updated after building a multiyear blueprint for menu improvements.