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đ The $32B burger
đ° From 0 To $32B
In 1953, a tiny restaurant in Jacksonville Florida named âInsta-Burgerâ was fighting an uphill battle to keep their doors open.
Little did they know, 70 years later their tiny restaurant would become one of the top fast-food chains in the world.
In the last 70 years, this chain has:
Operated under 4 different owners including Pillsbury and a British alcohol company
Changed their name 3 times and their logo 6 times
Permanently altered the fast-food burgers as we know it today
This is the story of Burger King and how two founders built a $32B company by mastering how to turn negative attention into billions.
Hereâs what we got for ya:
đ The Story Of Burger King
đ The Whopper
đ° The Satellite Strategy
Read Time: 5 min 10 sec
đ The Story Of Burger King
I wonât bore you with the nitty-gritty details of Burger Kingâs bumpy beginning, so hereâs the quick verisonâŚ
In 1953, the first Burger King opened in Florida under the name âInsta-Burger King.â
It was run by two guys inspired by the new and growing McDonald's in Illinois.
The First Burger King
At this point, fast food was a new trend that promised millions. It was cheap to make, and America was a starving crowd.
But the two founders (Keith Kramer and Matthew Burns) knew the money was not in owning a fast-food restaurant⌠It was in owning hundreds of them.
So thatâs what they did.
But the fast food franchising market was a new territoryâŚ
There were few guidelines and almost no mass-produced machinery to support it.
One of Burger Kingâs first ads
Their first restaurant was operating at a 57% loss for its first 3 years.
Kramer and Burns were taking out thousands in loans, promising investors dreams they couldnât fulfill, and on top of all thatâŚ
They were being crushed by McDonaldâs.
It wasnât until 1957 that Burger King was able to turn things around.
In 1957, Burger King realized competing with McDonaldâs to be the best fast-food restaurant would not work.
Especially stats showed that customers thought Burger Kingâs burgers were âovercookedâ, âToo expensiveâ, and a âpain in the a** to order.â
This realization and a quick local competition analysis led them to the biggest (and best) decision the company has ever madeâŚ
Itâs the decision that boosted their sales by over 60% the next year, and was literally their get-out-of-jail-for-free cardâŚ
The Whopper.
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đ The Whopper
By 1958, Burger King dropped the âInstaâ from their name and became âBurger King; âThe home of the Whopperâ
The Whopper is a quarter-pound burger that has become the signature meal of Burger King.
In 1957, it was the biggest fast-food burger you could order and worth 37 cents.
Why was it such a hit for Burger King?
Because for the first time, customers had a reason to go to Burger King over McDonalds.
âBy 1993 we were selling over two million Whoppers every day, and surveys showed that the American people favored the Whopper by as much as two to one over any other hamburger. I expressed the view that this sandwich could be a very powerful and effective marketing tool.â - Jim McLamore
Burger King became the place for the best and biggest burger.
So, almost all of their marketing features a comparison between the Whopper and McDonaldâs.
Here are a few of my favorites:
Ex #1 - "OK Google, what is the Whopper burger?"
After the big scare that McDonaldâs caused food poisoning, Burger King released a commercial pushing customers to ask Google Home âWhat is the Whopper Burger?â
When asked, Google Home would say that it was a âpoisonous burgerâ and âhad hormones that may result in death.â
The ads got millions of views over social media and increased 15% of Whopper sales that year.
Ex #2 - The Moldy Burger
Then there was the âMoldy Burgerâ campaign which was in response to a customer claiming their Big Mac did not mold after 28 daysâŚ
Ex #3 - The ChatGPT Billboard
I think this one speaks for itselfâŚ
đ° The Satellite Strategy
Not only did the very idea of Burger King come from McDonaldâs...
But 70 years later their entire marketing strategy still relies on them.
Simply put, there is no Burger King without McDonaldâs.
This is what I call âThe Satellite Strategy.â
Businesses use the Satellite Strategy all the time. Take Pickleball for example.
With the rise of Pickleball, more money has been made on the satellite businesses than the game itselfâŚ
Jerseys, shoes, premium paddlesâŚ
Or 1-800-Flowers (The largest global flower delivery company) who breaks even on their flower delivery service but makes millions on their baskets and vasesâŚ
Donât create attention. Channel it.
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