Fast food chain Burger King has announced a $400 million investment over two years as part of its “Reclaim the FLAME” plan to accelerate sales growth and increase franchisee profitability.
Burger King, part of Restaurant Brands International (RBI), said the plan was developed in collaboration with franchise leaders across the United States.
RBI Chief Financial Officer Matt Dunnigan said: “Our $400 million investment in the Burger King US system represents a substantial deployment of capital towards significant marketing and image investments aimed at accelerating our sales growth. and modernize our iconic brand across the United States.
“In 2023 and 2024, these investments are expected to have an average annual impact on Adjusted EPS of approximately ($0.10) to ($0.12), before taking into account the benefits of any potential sales improvements.
“In 2025 and beyond, we expect the impact to be accretive to Adjusted EPS as our advertising investments wind down and we realize the long-term business benefits of our Reclaim the FLAME initiatives and the increased advertising contributions from our system.”
The main components of the “Reclaim the FLAME” plan are brand positioning, menu priorities, advertising, modernization and operational excellence.
The investment will drive higher quality restaurant upgrades and renovations, increase brand awareness and support ongoing technology and digital investments.
Of the total investment, $150 million will be allocated to advertising and digital investments, while $250 million will be used for the ‘royal reset’, which will involve investments in restaurant technology, equipment kitchens, building improvements, renovations and moves.
The funding is also intended to support ongoing franchisee investments, which are aimed at improving Burger King’s restaurant portfolio.
Burger King North America President Tom Curtis said, “Our plan is focused on a few important priorities – operational excellence, a refreshed image and improved marketing – which, when taken together, deliver a superior experience for our customers.
Earlier this month, Burger King signed a master franchise and development agreement with McWin to expand its Polish footprint.