The chain's value offerings have been "choppy," according to executives, but the $1 Your Way menu is a crucial part of the strategy to boost profitability.
Burger King Dollar Menu, In January, Burger King saw same-store sales growth in the United States, a good start to the year and particularly noteworthy considering that the chain finished 2020 well behind its rivals.
Even though such circumstances appear to lead to bullish comments from executives on their various plans, Jose Cil, the CEO of parent company Restaurant Brands International, was not declaring any kind of victory.
If you're looking for the Burger King Drink Menu, you've come to the right place.
On the company's fourth-quarter earnings call on Thursday, Cil said, "This is not a victory lap, because some of the performance improvement was bolstered in part by the government stimulus."
He did, however, mention the company's $1 Your Way menu, a value deal that the company hopes will help the chain's promotional campaign stay on track.
In the last three months of the year, Burger King's same-store sales in the United States fell 2.9 percent, a slight increase from the 3.2 percent drop in the third quarter. It's also a significant underperformance as compared to the industry leader, McDonald's, which saw same-store sales rise 5.5 percent over the same time span.
Although the company's drive-thrus did well during the pandemic and the chain's distribution sales doubled—total digital sales now account for 8% of revenues—it struggled in the morning and late at night. Many concepts, like Burger King's sister chain Tim Hortons, have struggled in the morning, but both Wendy's and McDonald's saw some success late last year.
Cil blamed much of the blame on the company's marketing, both in terms of new products and their pricing, during the earnings call.
He said, "Value is an essential part of the market." “And specifically in the QSR section, in the fast-food hamburger space. In terms of how we approach meaning, we've been a little choppy.”
Burger King has become one of the most competitive fast-food chains in the value market, launching a series of promotions as its rivals generally avoided doing so. But, according to Cil, the deals haven't yet met his expectations.
“We've done a lot of bundling and promotional activations, including paper coupons and other value methods, but they haven't been resonating as well,” Cil said. “For a long time, we haven't had a value proposition, a daily value proposition, that has been trustworthy and consistent, and that our customers can rely on.”
Late in December, Burger King launched its $1 Your Way menu as "an vital move" in its value initiative, but not the only one. He said, "It's not the intention." “It's part of a longer-term strategy for us to concentrate more on the heart and have daily platforms that our customers can rely on.”
The "heart" refers to the chain's most famous menu products, such as the Whopper, which the company has been working to develop recently—for example, artificial colors, spices, and preservatives have been eliminated from the iconic sandwich. In its correspondence, the firm has also "put a lot of investment behind that."
Burger King is putting a lot of money into digital marketing, and they just started testing a new loyalty programme in a few different markets this week.
Cil also stated that chicken could be used to "expand" the company's core offerings—he confirmed the company's plans to introduce a new chicken sandwich this year, for example. Breakfast, according to Cil, will become increasingly relevant in the future. Breakfast actually accounts for about 13% to 14% of the chain's revenue, a far cry from McDonald's 25%-plus breakfast range. “We believe it has the potential to become a much larger part of our company in the long run,” he said.
Burger King has brought back the dollar menu, which is a sign of the times. Burger King is giving out $1 Venmo gifts to customers who want to check out their new dollar menu. A bacon cheeseburger, a Chicken Jr. sandwich, fries, and a soft drink will all be available for a buck on the updated $1 Your Way menu.
As many Americans struggle financially due to the pandemic-induced recession, Burger King is unveiling a dollar menu.
Burger King revealed on Monday that it would launch a $1 Your Way menu on December 28. A bacon cheeseburger, a Chicken Jr. sandwich, fries, and a soft drink will be available for $1 on the menu.
Burger King North America's chief marketing officer, Ellie Doty, told Business Insider that the dollar menu is back, and that many customers "have really, really missed it."
In recent years, dollar menus have become scarce. Since the demise of McDonald's' classic Dollar Menu in 2013, fast-food franchises have increasingly focused on bundled offers or promotions related to mobile apps rather than developing a menu of dollar-priced products.
"It's important for us to have daily value that is clear and easy to understand for our guests, and that they don't have to jump through a lot of hoops to get it," Doty said.
Fast-food restaurants also run promotions in January, as many consumers are more budget-conscious. This year will be a huge budget struggle as retailers aim to win back consumers who have been hit by the increase in unemployment.
"We heavily consider how they're thinking and feeling — what's going on in our guests' lives that we might be able to be a solution," Doty said. "When we think about what might resonate with our guests at any given time of year, putting aside macroeconomic times, we heavily consider how they're thinking and feeling — what's going on in our guests' lives that we might be able to be a solution."
"Being responsive to when it would be most helpful to our guests is certainly top of mind when we promote a value menu or introduce a $1 Your Way menu," Doty added.
From Monday until December 28, Burger King will send $1 to randomly selected Burger King customers via Venmo to promote the new offer.