Burger King 2012 Annual Report Download - page 5

Table of Contents
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We believe there are significant growth opportunities for our Company and the  system by:
•  We have identified the four priorities, or “pillars,” that we believe will enable us to drive
future sales and traffic in the U.S. and Canada.
• . The strength of our menu has been built on our distinct flame-grilled cooking platform to make better tasting burgers. During
2012, we launched four new menu platforms (salads, wraps, smoothies and desserts) and expanded our chicken, coffee and ancillary
menu platforms. We will continue to optimize our menu by focusing on our core products, such as our flagship  sandwich,
while broadening the depth and breadth of our menu to appeal to a broader range of consumers.
• . We have established a data driven marketing process which is focused on driving restaurant sales and
traffic, while targeting a broader consumer base with more inclusive messaging to reach women, parties with children and seniors. We
have launched a new food-centric marketing strategy with the tagline “Taste is King”, which we believe will refocus our consumers on our
food, which is our core asset. We believe that this food-centric marketing strategy will allow us to strike a balance between value
promotions and premium limited time offerings to drive profitable restaurant sales and traffic.
• . We believe that improving restaurant operations and enhancing the customer experience are key components to increasing
the profitability of the  system. As part of our franchisee-focused approach to our business, we have implemented
standardized restaurant crew training and restructured our field teams to significantly increase our field presence and more closely align
the compensation of these field teams with restaurant performance.
• . We believe that re-imaged restaurants increase curb appeal and result in increased customer sales. Our goal is to
have 40% of our U.S. and Canada restaurants on a modern image by 2015. We have lowered the cost of remodeling
restaurants by improving the supply chain and providing franchisees with financial incentives and access to a third-party financing
program to assist them in their remodeling efforts. Re-imaged restaurants have experienced a sales uplift of approximately 10-15% on
average, enabling our franchisees the opportunity to achieve an attractive return on their investment.
•   We believe that international development will be one of the principal drivers of long-term growth of
the business and value for our shareholders. We seek to accelerate our international growth by:
• creating strategic joint ventures with accelerated development targets, in which we retain a significant minority equity interest without
deploying new capital; and
• entering into master franchise and development agreements with experienced local operators.
Generally, these strategic arrangements grant one or more franchisees the exclusive right to develop and manage  restaurants in a
specific country or region. We expect to focus our international expansion plans predominantly in high-growth emerging markets where we believe
our current penetration is low relative to our potential. We believe this strategy will permit us to capitalize on under-penetrated markets and rising
middle class consumer spending.
During 2012, we entered into joint venture agreements for China, Russia, South Africa and Central America and granted master franchise and
development rights for each market. We also entered into an agreement with our largest franchisee in Mexico to establish a joint venture in that
country, which we expect will close in 2013. In each joint venture, we typically pair a proven local operator with a strong financial partner while
retaining an equity stake and board seats. Also during 2012, we entered into development agreements with franchisees in Singapore, Malaysia,
Vietnam, Korea, the Nordic countries (Norway, Sweden and Denmark) and Colombia, and we are actively seeking strategic partners to accelerate
our international expansion in other countries.
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Source: Burger King Worldwide, Inc., 10-K, February 22, 2013 Powered by Morningstar® Document Research℠
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