Introduction
McDonald’s and Burger King started in the franchise food business in 1955 and 1954, respectively. McDonald’s has always been the larger company, but each firm has unquestionably influenced the other throughout their six-decade-plus rivalry. In this article, we are going to look at the company level comparison between McDonalds and Burger King.
McDonald’s has the highest market capitalization of any fast-food restaurant chain in the the world. Its vast size and global reach represent challenges on their own. Burger King’s turnaround has allowed it to challenge McDonald’s supremacy on quality and price.
Burger King is McDonald’s direct competitor. This is because they provide very similar services under the same category of fast food. They also have a similar target audience to that of McDonald’s where they try to attract the attention of teenagers and young, working adults. Burger King’s tagline is ‘Have it your way’.
For more than 60 years, McDonald’s has been the trailblazer that set the standard by which all other franchises operated. But there are signs those roles may be reversing. A revitalized Burger King is forcing McDonald’s to adjust to it, not the other way around.
Profile
McDonald’s is known for its “Golden Arches” logo and its iconic Big Mac sandwich. The company has a global presence, with over 38,000 locations in over 100 countries. McDonald’s also offers a variety of menu items, including chicken sandwiches, salads, and breakfast items. McDonald’s menu change every month and they try to increase the quality of their products every time.
Burger King, on the other hand, is known for its “flame-Broiled” burgers and its slogan “Have it Your Way”. The company has over 18,000 locations in over 100 countries. Burger King’s menu also includes chicken sandwiches, salads, and breakfast items, but it also has a wider variety of sandwiches and sides.
Franchising
Meaningfully investing in Burger King and McDonald’s usually means buying and operating a new franchise unit. Since each company operates on an international level and no two markets are identical.
SWOT ANALYSIS
- McDonald’s has successfully rolled out new items with wide audience reach.
- Strong product offering.
- Operations are spread around the world.
- Successful brand name.
- Professional training for employees.
- Competitive price.
- Operating in many diverse cultures.
- It will be harder to find prime locations to build a set of golden arches.
- Management of franchisee.
- High employee turnover rate.
- An increasing price of competition.
- There are opportunities for new restaurants.
- Menu innovations are limited only by imagination.
- Low interest rates provide cheap capital for growth.
- Growing dining out market.
- Governments are considering regulations targeting fast food.
- McDonald’s faces competition.
- From local competitors.
- New products.
- More health conscious customers.
- Commodity price increases could increase costs
- Strong brand image
- High market penetration
- Moderate differentiation of products
- Easily imitable business
- Limited product mix
- Low control on franchise model
- Diversification/product mix widening
- Market development
- Service quality improvement
- Aggressive competition
- Imitation
- Healthy lifestyles trend
Conclusion
The battle between McDonald’s Corporation and Burger King represents one of the great rivalries in American business history. For more than 60 years, McDonald’s has been the trailblazer that set the standard by which all other franchises operated. But there are signs those roles may be reversing. A revitalized Burger King is forcing McDonald’s to adjust to it, not the other way around.
