Burger King 2011 Annual Report Download - page 11

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Table of Contents
Trac®, a rating system based on survey data submitted by our customers. We review the overall performance of our operations platforms and focuses on
evaluating and improving restaurant operations and guest satisfaction.
We have uniform operating standards and specifications relating to selection of menu items, maintenance and cleanliness of the premises and employee
conduct. In addition, all Burger King restaurants are required to be operated in accordance with quality assurance and health standards which we establish, as
well as standards set by federal, state and local governmental laws and regulations. These standards include food preparation rules regarding, among other things,
minimum cooking and holding times and temperatures, sanitation and cleanliness. Additionally, we and an independent outside vendor administer the Restaurant
Food Safety certification, which is intended to bring heightened awareness to food safety, and includes immediate follow-up procedures to take any action
needed to protect the safety of our customers.
We closely supervise the operation of all of our Company restaurants to help ensure that standards and policies are followed and that product quality, guest
service and cleanliness of the restaurants are maintained. In the U.S. and Canada, we recently implemented a field optimization project to significantly increase
our field presence, which we believe will help improve restaurant operations. Detailed reports from management information systems are tabulated and
distributed to management on a regular basis to help maintain compliance. In addition, we conduct scheduled and unscheduled inspections of Company and
franchise restaurants throughout the Burger King system.
Intellectual Property
We own valuable intellectual property including trademarks, service marks, patents, copyrights, trade secrets and other proprietary information. As of
December 31, 2011, we owned approximately 2,928 trademark and service mark registrations and applications and approximately 1,376 domain name
registrations around the world, some of which are of material importance to our business. Depending on the jurisdiction, trademarks and service marks generally
are valid as long as they are used and/or registered. We also have established the standards and specifications for most of the goods and services used in the
development, improvement and operation of Burger King restaurants. These proprietary standards, specifications and restaurant operating procedures are trade
secrets owned by us. Additionally, we own certain patents relating to equipment used in our restaurants and provide proprietary product and labor management
software to our franchisees. Patents are of varying duration.
Competition
We operate in the FFHR category of the QSR segment of the broader restaurant industry. We compete in the United States and internationally with many
well-established food service companies on the basis of product choice, quality, affordability, service and location. Our competitors include a variety of
independent local operators, in addition to well-capitalized regional, national and international restaurant chains and franchises. In the FFHR industry our
principal competitors are McDonald’s Corporation, or McDonald’s, and The Wendy’s Company, or Wendy’s, as well as regional hamburger restaurant chains,
such as Carl’s Jr., Jack in the Box and Sonic. To a lesser extent, we also compete for consumer dining dollars with national, regional and local (i) quick service
restaurants that offer alternative menus, (ii) casual and “fast casual” restaurant chains, and (iii) convenience stores and grocery stores. Furthermore, the restaurant
industry has few barriers to entry, and therefore new competitors may emerge at any time.
Government Regulation
We are subject to U.S. and international laws affecting the operation of our restaurants. Each of our restaurants must comply with licensing requirements
and regulations by a number of governmental authorities, which include zoning, health, safety, sanitation, building and fire agencies in the jurisdiction in which
the
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Source: Burger King Holdings Inc, 10-K, March 14, 2012 Powered by Morningstar® Document Research℠