Burger King 2010 Annual Report Download - page 7

Table of Contents
Our Business Strategy
We believe that by remaining committed to the success and growth of our brand and managing our business for the long term, we
will strengthen our competitive position and create sustainable shareholder value. We consider the best method to effectively manage
our business for the long term is through our continued focus on the strategic global growth pillars of our True North business plan:
grow the brand; run great restaurants; invest wisely and focus on our people. Key elements of this business plan are the following:
• Expand worldwide development: The expansion of our restaurant network and an increase in the number
of new restaurants are key components of our growth plan. We expect that most of our new restaurant
growth will come from franchisees. Consequently, our development strategy centers on ensuring that
franchisees in each of our markets have the resources and incentives to grow. Internationally, we have
developed a detailed global development plan to accelerate growth over the next five years and forecast
our international restaurant count to be 50% of the total number of Burger King restaurants within this
time frame. We expect to focus our international expansion plans on (1) markets where we already have
an established presence but which have significant growth potential, such as Spain, Brazil and Turkey;
(2) markets in which we have a small presence, but which we believe offer significant opportunities for
development, such as Argentina, Colombia, China, Japan, Indonesia and Italy; and (3) financially
attractive new markets in the Middle East, Eastern Europe and throughout Asia. In addition, we have
invested in joint ventures with franchisees to drive development in Taiwan and Northern China, and we
expect to continue to use this strategy in the future to increase our presence globally.
• Invest in our Restaurants to Drive Growth: We believe that our newly developed restaurant designs,
including our “20/20” design and the complementary Whoppertm Bar design, convey our vision of the
Burger King brand and reinforce the message that Burger King delivers superior products and a positive
guest experience. 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 corrugated metal, brick, wood and concrete. To date, more than 300 Burger
King restaurants have adopted the 20/20 design in cities such as Miami, Vancouver, Mexico City,
Edinburgh, Rome, London and Shanghai, and we plan to reimage 95 Company restaurants using the 20/20
design during fiscal 2011. Data show that Burger King restaurant remodels drive traffic and sales with
Company restaurants typically experiencing a double−digit sales lift post reimage and the Company
experiencing strong cash on cash returns for our investment. In fiscal 2008, we launched a Company
restaurant reimaging program in the United States and Canada, including remodels and rebuilds, and we
are actively encouraging franchisees to reimage their restaurants to achieve a uniform and consistent
image and improved guest experience.
• Develop innovative products that support both ends of our barbell menu strategy: We continue to focus
on our barbell menu strategy of balancing innovative premium products and affordable value products to
offer more choices to our guests, enhance the price/value proposition of our products, grow our market
share and improve our operating margins. As part of this strategy, in fiscal 2010, we expanded our
premium menu and launched limited time offers, including the premium Steakhouse XTtm burger line,
which highlights the brand’s signature flame−broiled taste, and BKtm Fire−Grilled Ribs, the first authentic
bone−in pork ribs sold at a national FFHR chain. Both of these items are prepared on our proprietary
flexible batch broiler. At the other end of the barbell menu, we launched value promotions in the U.S.,
such as the 1/4 lb. Double Cheeseburger, the Buck Double and the $1 BK Breakfast Muffin Sandwich, and
continued to promote everyday branded value platforms in EMEA and Latin America such as King
Dealstm in EMEA and Come Como Reytm (Eat Like a King) and BKtm Ofertas (King Deals) in Mexico. As
a result of current global economic conditions and weak consumer confidence, during fiscal 2011 we
intend to differentiate Burger King restaurants from our competitors by continuing to offer our guests a
balance of premium products and value offerings, each built upon our brand equity of flame−broiled taste.
We plan to continue to introduce new products to fill gaps in our breakfast, beverage, dessert and snack
menu offerings, with an emphasis on increasing our share of the breakfast day part. We intend to roll−out
several new and limited time offer products during fiscal 2011, including value focused products to
promote our affordability message and premium products to expand our margins.
• Employ innovative marketing strategies: We intend to continue to employ innovative and creative
marketing strategies to increase our restaurant traffic and comparable sales. We also plan to launch
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