McDonalds VS. Burger King
The predecessor to what is now the international fast food restaurant chain Burger King was founded in 1953 in Jacksonville, Florida, as Insta-Burger King. Inspired by the McDonald brothers' original store location in San Bernardino, California, the founders and owners, Keith J. Kramer and his wife's uncle Matthew Burns, began searching for a concept to open a new restaurant around. After purchasing the rights to two pieces of equipment called "Insta" machines, the two opened their first stores around a cooking device known as the Insta-Broiler. The Insta-Broiler oven proved so successful at cooking burgers, they required all of their franchises to carry the ...view middle of the document...
One of his initiatives was a new advertising campaign featuring a series of attack ads against its major competitors, the resulting advertising ushered a competitive period between the top burger chains known as the Burger Wars. Brinker left the company in 1984 to take over Dallas-based gourmet burger chain Chili's.
While the efforts of the two men were initially effective, after their respective departures Pillsbury allowed many of their changes to be relaxed or discarded while scaling back on construction of new locations. These actions had the negative effect of stalling corporate growth and a return to declining sales. This decline eventually resulted in Burger King falling into a fiscal slump that damaged the financial performance of both Burger King and its parent; this poor operating performance and ineffectual leadership continued to bog the company down for many years. Even after Pillsbury was acquired in 1989 by the British entertainment conglomerate Grand Metropolitan, Burger King's financial performance lingered.
Initially Grand Met attempted to bring the chain top profitability under newly minted CEO Barry Gibbons; the changes he initiated during his two-year tenure were hit or miss. Successful new product introductions and product tie-ins with the Walt Disney Company were offset by continuing image problems and ineffectual advertising programs. Additionally, Gibbons sold off several of the company's assets in attempt to profit from their sale and terminated many staff members. After Gibbon's departure, a series of CEO each tried to repair the brand by changing the menu, bringing in new ad agencies and other changes.
The parental disregard of the Burger King brand continued through Grand Metropolitan's merger with Guinness in 1997, when the two organizations formed the new holding company Diageo. Eventually, the ongoing, systematic institutional neglect of the brand through the string of owners damaged the company to the point where major franchises were driven out of business and its total value was significantly decreased. Diageo eventually decided to divest itself of the money-losing chain and put the company up for sale in 2000.
The twenty-first century saw the company return to independence when it was purchased from Diageo by a group of investment firms led by TPG Capital for$1.5 billion (USD) in...