Burger King 2010 Annual Report Download - page 13

Table of Contents
research and development costs down and simultaneously facilitates the ability to sell new products and to launch initiatives both
internally to franchisees and externally to guests.
We have developed a flexible batch broiler that is significantly smaller, less expensive and easier to maintain than the previous
broiler used in our restaurants. The flexible batch broiler is currently installed in 89% of our Company restaurants, and the broiler has
been ordered or installed in approximately 68% of franchise restaurants worldwide. During fiscal 2010 we launched the Steakhouse XT
burger line and BK Fire−Grilled Ribs in the U.S. prepared on the flexible broiler, and we expect to launch other innovative products
using this new cooking platform during fiscal 2011. We have filed patent applications to protect our worldwide rights with respect to
the flexible batch broiler technology. We have licensed one of our equipment vendors on an exclusive basis to manufacture and supply
the flexible batch broiler to the Burger King system throughout the world.
As part of our commitment to providing nutritional alternatives to our customers with children, we joined the Council for Better
Business Bureau’s (CBBB) Food and Beverage Advertising Initiative (CFBAI) in 2007 and pledged to restrict 100 percent of national
advertising aimed at children under 12 to BK® Kids Meals that meet stringent nutrition criteria. In the U.S. we currently have three
existing BK Kids Meal lunch/dinner options and in August 2010 introduced a breakfast meal for children that meets this strict
nutritional criteria. BKC also provides BK Positive Steps® nutrition materials in restaurants nationwide, has transitioned to zero grams
of artificial trans fat in all ingredients and cooking oils in the U.S., and has partnered with USDA to promote MyPyramid information to
both kids and adults.
Operating Procedures and Hours of Operation
All of our restaurants must adhere to strict standardized operating procedures and requirements which we believe are critical to the
image and success of the Burger King brand. Each restaurant in the U.S. and Canada is required to follow the Manual of Operating
Data, an extensive operations manual containing mandatory restaurant operating standards, specifications and procedures prescribed
from time to time to assure uniformity of operations and consistently high quality products at Burger King restaurants. Among the
requirements contained in the Manual of Operating Data are standard design, equipment system, color scheme and signage, operating
procedures, hours of operation, value menu and standards of quality for products and services. Internationally, Company and franchise
restaurants generally adhere to the standardized operating procedures and requirements; however, regional and country−specific market
conditions often require some variation in our standards and procedures.
We believe that reducing the gap between our operating hours and those of our competitors will be a key component in capturing a
greater share of FFHR sales in the United States and Canada. Restaurants in the United States and Canada, subject to certain exceptions,
are required to be open until at least 2 a.m., Friday night and Saturday night and until at least midnight on the remaining days of the
week. Restaurants in the United States and Canada are required to be open by at least 6 a.m., Monday through Saturday.
Restaurant Design and Image
System−wide, our restaurants consist of several different building types with various seating capacities, including free−standing
buildings, as well as restaurants located in airports, strip malls and shopping malls, toll road rest areas and educational and sports
facilities. The traditional Burger King restaurant is free−standing, ranging in size from approximately 1,900 to 4,300 square feet, with
seating capacity of 40 to 120 guests, drive−thru facilities and adjacent parking areas. In fiscal 2005, we developed new, smaller
restaurant designs that reduce the average building costs by approximately 20%. The seating capacity for these smaller restaurant
designs is between 40 and 80 guests. We believe this seating capacity is adequate since approximately 63% of our U.S. Company
restaurant sales are made at the drive−thru.
In today’s environment, restaurant experience is now as important as value and quality. We believe that image complements
visibility via “curb appeal” driving capture rates and traffic, while interior image and experience expands frequency of visit and overall
guest satisfaction and increases comparable sales. Consequently, in fiscal 2008, we launched a system−wide initiative to roll−out our
“20/20” design and the complementary Whopper Bar design. The classic and contemporary “20/20” design draws inspiration from our
signature flame−broiled cooking process and incorporates a variety of new, innovative elements to a backdrop that evokes the industrial
look of
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