1. Burger King’s 20/20 Remodel vs. McCafé Burger King’s 20/20 Remodel vs. McCaféBy Bailey McEuen Susan Kjos Robin Knudtson

2. Trends McDonald achieved the First Mover Advantage McDonald achieved the First Mover Advantage More Families dining at home More Families dining at home Fast Food Kitchens to Casual Dining Fast Food Kitchens to Casual Dining Going Green Going Green Generation Y Generation Y

3. Burger Kings 20/20 Design Contemporary and industrial design Finishes that resemble brick and concrete Urban masculine design LCD menu screens and rotating flame chandeliers New design give guests more valuable restraint experience through …. Offers dining options 60 different locations worldwide and 75 more to be open by end of next year Cost franchisees $300,000- $600,000 to remodel

4. The New Whopper Bar Create whole new experience to create the best service experience. - Introducing “Whopperistas” - Customize burgers with 22 different toppings. -”Bars Favorite Lists” Making locations more accessible for -implementation into new markets through creating their stand alone locations.

5. 2009 Menu Comparison

6. McDonalds Mission History: History: A restaurant originally known for…. competitive advantages includes… Started investing intensely in advertising and revamping their image. Started investing intensely in advertising and revamping their image.image McCafé designed to offer customers affordable luxury. McCafé designed to offer customers affordable luxury. Increase customer satisfaction through: Increase customer satisfaction through:-Wifi -Upscale Tables and Chairs -orders served on signature dishes.

8. Old Competitors include… Old Competitors include… New Competitors include… New Competitors include…

9. Positives and Negatives to redesign Positives: Remodeled Burger Kings: Increase in profits of 12-15% Remodeled Burger Kings: Increase in profits of 12-15% Completely rebuilt branches: Increase of up to 30% Whopper bar emphasize their “Have it your way” moto. Larger span of new customers Larger span of new customers $1 Billion in revenues on McCafe alone over a year $1 Billion in revenues on McCafe alone over a year Negatives: Business mostly through drive through will not be affected by remodel. High costs in remodel creates long term debt for franchisee.

10. Rivals among competitors Rivals among competitors Burger King’s effort to ENHANCE the experience. Burger King’s effort to ENHANCE the experience.ENHANCE

11. McDonald’s main strategy is to use franchises to enter into markets. McDonald’s main strategy is to use franchises to enter into markets. -25, 465 operated by Franchisees -6,502 operated by the company -In 118 countries McDonalds Gross Profit McDonalds Gross Profit (March 31, 2009) $1.8 Billion (June 30, 2009) $2.1 Billion Burger King also uses the same strategy to enter into markets. Burger King also uses the same strategy to enter into markets. -10,496 operated by franchisees -1,429 operated by the company -In 73 Countries Burger King Gross Profit Burger King Gross Profit (March 31, 2009) $203 million (June 30, 2009) $167.6 million

13. Which Restaurant do you prefer?

14. Sources (2007, May 07). Papascott background on Mccafé. Retrieved from http://www.papascott.de/archives/2007/05/07/ background-on- mccafe/ (2007, May 07). Papascott background on Mccafé. Retrieved from http://www.papascott.de/archives/2007/05/07/ background-on- mccafe/ (n.d.). McDonald’s Corporation. Retrieved from http://www.hoovers.com/mcdonald's/--ID__10974--/free-co- competitors.xhtml (n.d.). McDonald’s Corporation. Retrieved from http://www.hoovers.com/mcdonald's/--ID__10974--/free-co- competitors.xhtml Yahoo Finance, "MCD Yahoo Finance". Yahoo. Oct. 22, 2009. Yahoo Finance, "MCD Yahoo Finance". Yahoo. Oct. 22, 2009. Yahoo Finance, "BKC Yahoo Finance". Yahoo. Oct. 22, 2009. Yahoo Finance, "BKC Yahoo Finance". Yahoo. Oct. 22, 2009. King, Burger. "Burger King Corp.'s Bold New Global Restaurant Design Takes Flight At Amsterdam's Schiphol Airport". Burger King. Oct. 22, 2009. King, Burger. "Burger King Corp.'s Bold New Global Restaurant Design Takes Flight At Amsterdam's Schiphol Airport". Burger King. Oct. 22, 2009. Jerry. "Environmentally Friendly Cars". Green Cars. Oct. 22, 2009. Jerry. "Environmentally Friendly Cars". Green Cars. Oct. 22, 2009.