Feasibility Study of Burger King and Subway
The Burger King started its business in 1954 and it was founded by David Edgerton and McLamore and opened its first branch in Miami, Florida. It is the American global chain for the hamburger and has it’s headquartered in US. The Burger King Corporation is considered the second largest chain of fast food in the United States that is just trailing McDonald. The company has almost more than 10,450 restaurants and owns approximately 1000 chain that was exceeding to 11,455in the 50 states. It is the idea that each day company served approximately 15.7 million customers. In the late 1990s, the Burger King sales become worse as well as its franchise relationships. The parents of Burger King sold a company to the Texas Pacific Group at the end of 2002.
The Subway was found in the year 1965 and Fred DeLuca fined it with his partner named Peter Buck. The head quarter of Subway is in Milford, Connecticut, United States. The base of the Subway was on the value to serve well with the product that has high quality at low cost. The policy of the franchise business was started in 1974 with the goal to open 32 stores. It the largest submarine sandwich chain of the world that exist in more than 37,000 locations in the entire world.
Description of Products and Services
The Burger King is the fast food hamburger restaurant chain and in its major products cheeseburgers, hamburgers, Salads, Fries, Onion rings, Hash browns, Cookies, Juice, Coffee, Pies, and shakes are included. Usually, it was the strategy of the Burger King to set it away from any type of the competition and keep walking in its own way. This strategy allows the individuals to make their orders with a lot of options that are available in which mustard, bacon, lettuce, ketchup, pickles, mayonnaise, and onion are included. It is the second largest chain of the burger in the country that also added Starbucks Corp, which is famous for Best Coffee in all its restaurants of the United States in 2010 (Bk.com, 2018). Due to this effort, almost more than 7,000 restaurants of Burger King started selling coffee with some iced verities with some choices like mocha flavors, vanilla and plain and whipped toppings coffee. The Burger King also signed a deal of licensing with ConAgra Foods Lamb Weston, due to which it becomes able to offer a Burger King French fries with the retail line of the microwaveable at some retailer of the United States in which Wal-Mart also includes. The company sales its major products under the product title like Burgers, Big King, Whopper, Premium burgers, BK Stackers, Sliders, Rodeo sandwiches, Fish Sandwiches, BK Toppers, Poultry and fish, Turkey burger, Chicken nuggets, Grilled chicken sandwiches, Specialty Sandwiches, Spicy bean burger, BK Veggie, Vegetarian, Chicken Jr. etc. the Burger King is making effort to create online platform in order to increase the selling of the products. With the help of this service, the Burger King make effort to increase the share of its market (Bk.com, 2018).
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The core products of the Subway is the submarine sandwich with salads, wraps, some backed goods, and Panini’s. The best selling sandwich on the subway is BMT that is the abbreviation of the Brooklyn Manhattan Transit. The Subway also provides its consumers with flatbread, English muffins and breakfast sandwiches. In the year 2006, personal pizzas in the market of United States was also offered by Subway but on made to order service that is heated approximately 85 seconds and just available in some stores. In the year 2009, the company signed a deal, in which the agreement was made to exclusively serve Seattle’s Best Coffee in its menu of the breakfast. In 2009, the Subway was categorized as the best provider of the option for healthy food. It is also considered the top service provider. One of the beauties of a menu of the Subway is that its menu is different in different countries and it also prefers the religious requirements of the countries in their eating habits. The other services that are provided by the Subway include the facility of catering, loyalty programs in the clubs of Subway, online ordering, nutritional guide, making own sub etc. it provides the facility to know what individual eat that make an individual make the healthy choice. The unique facility of the organization makes it much famous in the market as it makes an individual able to customize the sub with the selection of sauces, bread salads (4stores1girl.weebly.com, 2013).
There is no doubt that fast food industry takes good advantage of the technology from many years. Similarly the Berger King also in one of this restaurant. The Burger King has the sophisticated network of the restaurants. The tracking system of the sale at Burger King is quite up-to-date. The corporation makes use of special software in order to monitor all the aspects of the orders as well as the process of the services in real time. Such type of information is gathered from all the selling counters and then this information is sent with the help of local network to the server of the Window NT in the office of the manager of the restaurant. The technological process of the Burger King starts with the movements when someone make an order or show its willingness to buy and in this regard type something in terminal in which all the things are included like the request of the no mastered, extra pickles and the number of the tomato slice etc. all the items that were delivered successfully is deleted from the recorded automatically. In-store Wi-Fi has the greater application in Burger King that makes the services good and also controls the mobile payments in the better way as well as makes the organization able to create the gaming in a restaurant as well as the retail powerhouse contents (Johnson, 2018).
The term digital transformation is now just associated with corporate but it is also widely accepted by the restaurant’s industry. As the world is changing, due to which the behavior of the consumers is also changing rapidly and they expect more convenience, options as well as personalization from their service providers. That is why the restaurant’s industry also has to adopt the digital methods that can be easily used by their guests. In this regard, the Subway also consider itself pioneer in the field of using technology. N the year 2003, the organization made use of the system of mobile payments as well as ordering. In the year 2006, the subway also launched the loyalty/gift card scheme in the industry (Grossman, 2017). It also considered itself as the first largest chain that introduced end-to-end NFC and credit card encryption and much more in the restaurants of the United States. The availability of the system of NFC indicates that the subway was ready for the mobile-wallet and makes the company able to launch with the partner Apple as well as Google. The subway also launches a bot of Facebook messenger that may make the consumers able to make the order and pay for their order as with the help of using social media chatroom giants. The Subway advertises the launch as one of the largest Messenger bot deployment in the industry of the restaurants (McLean, 2017).
The Burger King is the typical choice of the people of all the age but particularly it is very famous in the young male. The menu of the restaurant is tailored and considered different segments of the market. It is the main objective of the Burger King to guarantee the best positioning of the choice to the young as well as the teens. Such strategy makes the organization able to market different types of products to different types of the group of people. The menu of the Burger King target the people of all type of behavior, age, lifestyle, region, different income level as the segmentation program of the Burger King is based on the market of consumers. The Burger King adopts three approaches that are demographic segmentations, psychographic segmentation, and behavioral segmentation. Due to these three approaches, the marketing segmentation of the organization involves multiple segments as well as multiple approaches. Additionally, the policy of the drive-thru also provides the attraction as well as the comfort to the segments of the family. Recently, the Burger King also offers low cholesterol as well as low-fat vegan products that create health awareness and provides their customers with the healthy lifestyle. The different types of demographic segmentation policies make Burger King able to bring the modification in the products with little cost (Davis, 2012).
The method of the Subway market segmentation is based on geographic segmentation, socio-cultural and demographic segmentation, Psychological and behavioral segmentation. The geographic segmentation of the Subway is based on the market segmentation according to towns, countries cities etc. the demographic segmentation of the organization is based on gender, age group, income as well as the life cycle of the customers. The psychographic segmentation of the organization is between the ages of 16 – 39. These are those people who are more conscious about their health. That is a way; with the help of providing fresh as well as a healthy food it is attracting its customers by targeting their psychological trends. In the behavioral trend, it offers the services of catering to its customers as it knows in the busy life the fresh, as well as healthy fast food catering, is the basic necessity of the customers. The target market of the Subway is young as well as the adults with the age range of 16-39 with the fact that the people of all the age enjoy the products and services of the organization very much. The target market of the organization usually belongs to those people who know about their minds very well. The availability of the healthy chain of the fast foods is the basic brand value of the Subway (Bhasin, 2012).
The Burger King always makes effort to increase its sales and the reason behind it is the empowerment of the McDonalds. The organization gains much popularity under the slogan that is “have it your way” and gained a lot of hungry eaters that increase their sales. One of the basic reasons behind the success of the company is its marketing strategy. The Burger King adopts the marketing mix strategy of 4P’s that is the product, price place, and promotion. The Berger King started its business with simple fries and burgers and with the passage of time, it brings diversity to its menu by considering the customer’s needs and adopt an adaptive strategy. The pricing policy of the company is also flexible and is according to the psychological marketing strategy. The organization continues to sell its new burgers at lowest possible prices. Most of the revenues generated by burger King are from the sales of its own restaurants, income from property as well as the fees of the franchise. The company operates in various prime locations under its franchise networks. The company also promotes its business by some promotional strategies. Like it makes use of the “Next big move” in order to showcase the promotion to the urban customers (Greenspan, 2017).
The Subway also adopts the marketing mix strategy of 4P’s. The products of the company are following international standards and it also makes use of the corporate identity as well as the international branding. The brand also considers itself as a best and healthier alternative to other fast food. The organization makes use of the different components of the mix promotion and with the help of these components, it promotes its brand. It is necessary for the Subway to use unique advertising proposition because the organization is the part of the saturated market and it is the goal of the organization to connect the advertising message with its complain of advertisement. The company also makes use of the tool of the online marketing by which it attracts the attention of the students as well as the teenagers. It uses the technology with its full extenuate in order to market itself and increase the sales. The Subway also makes use of the media advertisements with the help of the national TV as well as the radio and the print media. It plans all of its advertisement with much care as the cost of the advertisement is very difficult to bear for the organization if it does not brings any fruits (Ksardana, 2016).
Organization And Staffing
The staffing requirements of both of the organization are generally same as both the organization belongs to the industry of fast foods and restaurants and has global values. With the passage of the time, the requirements of the customers from the service providers is increasing that arise the needs of the additional staffing in the restaurants as well as to the back end force so that the changes can e accommodated. Such consideration of the staffing is important to the businesses as and increase the cost of the organizations. However, it is necessary in order to bring the changes in the organization as well as also to practices the changes in the organizational setup.
With the passage of time, it becomes necessary for both of the organizations to market their products with online tools in order to increase their sales. The online campaign sales significantly affect the structure of the organization. However, the organization still considering them in the way of the improvement process, so they always remain in search of devising such strategies that can make the structure of the organization more efficient. Both of the companies have to work in the existing organizational setup. There are a lot of department that is working on the organizational setup. The examples of the staffing are like online sale managers which is the full-time position and the major responsibility of that particular person is to manage the sale staff in order to identify the opportunities of the sales as well as also to bring fruits from the devised marketing strategies. The person is responsible to direct all the output with the director that is associated with sales in the head quarter.
On the other hand, the organization also has the online marketing manager that leads the online marketing campaign of the organization in order to boost the sale of the company. This person is also responsible for the online marketing campaign of the company and increases the customers by observing the behavior of the customers. Furthermore, there is also front-end employee of both the organization that deals with the customers directly and provide them direct services and responsible for the image of the organization directly. Both the organization has an almost same type of the structure of the organization and employees. Furthermore, the research and development department of the organization is remaining active to analyze the key trends of the organization as well as the market. It is the responsibility of this department to coordinate the strategies of the organization with the actual requirements.
Both the companies are following the flexible schedule in all respect either in terms of dealing with employees or the senior staff members. Both the companies make the schedule for the meetings in order to check the performance globally as well as the reputation of the company in the market. Time to time they make the schedule to check the working of all the departments and devise the strategies in order to make the functioning better and increase the level of the efficiency of the organization.
The financial projection in term of the online sales, use of technology, additional requirements of the staffing material and other cost of both the companies are as following:
Findings And Recommendations
The portfolio of both the company is strong. The gross profit of Burger King for 2016 is $15,173,000 while the gross profit of Subway for the same year is 12,273,000. Both the companies have the potential to afford such type of investment that temporarily increase their expenditures and after it becomes the reason for the increase in the profit of the companies. The comparison of the both of the companies that are based on their profit, marketing strategy as well as the position of the brand provides the idea that Berger King is comparatively performing well in the industry of the fast food. On the other hand, Subway is also performing well but its markets short as compare to Burger King. Both the companies are operating internationally and making effort to provide their customers best product and services as well as use the technology in their business efficiently.
It is recommended to Burger King and to perform more efficiently to adopt one of the positivity of the Subway that introduces the menu according to the areas and traditions of the particular countries. The Subway should also make it marketing tool more efficient and make effort to provide customers with more fewer rates and target customer according to their financial condition so that they can capture more market. It is also recommended to Subway that it should increase its product range as well as verity by introducing burgers, pizzas and some more items so that it can increase more market share. The Burger King should focus on the setting environment as well as the cleanness of the restaurants as most of the customers have complained over this issue. In order to compete with MacDonald, it should adopt the marketing strategy and the brand positioning strategy of MacDonald so that it can become one of the largest and famous companies in the world.
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- McLean, A. (2017, 05 16). Subway keeping its tech fresh for improved customer experience. Retrieved from http://www.zdnet.com/article/subway-keeping-its-tech-fresh-for-improved-customer-experience/