Burger King has followed a sad trajectory.
The chain has fallen below Wendy's as the No. 2 fast-food hamburger chain. That's like Pepsi dropping behind Keurig Dr. Pepper as Coca-Cola's chief rival.
And BK's parent, Restaurants Brands International (QSR) -), has surely not decided to accept the situation. The company has continually evolved its menu, which recently added the BK Royal Crispy Wraps. It's a knockoff of the McDonald's Snack Wrap, an item fans of that chain have begged the company to put back on the menu.
Related: Wendy's menu adds a new take on a beloved burger
The No. 3 burger chain has also been making changes behind the scenes, including bringing on former Domino's Chief Executive Patrick Doyle as its executive chairman.
In addition, Burger King — which has seen hundreds of franchises close over the past year — has been investing heavily in its "Reclaim the Flame" campaign designed to increase the company's advertising, improve its restaurants, and drive technology upgrades.
This two-year, $400 million investment "will include $150 million in advertising and digital investments to 'Fuel the Flame' and $250 million for a 'Royal Reset' involving restaurant technology, kitchen equipment, building enhancements, and high-quality remodels and relocations," the company said in a news release.
"This investment will work to enhance ongoing franchisee investments to modernize the Burger King restaurant portfolio."
"Reclaim the Flame" also includes a renewed focus on menu innovation. And that's led to a new attempt to double down on Burger King's biggest advantage over Wendy's and McDonald's.
Image source: Chen Jianli/Xinhua via Getty
Burger King leverages its grill
Wendy's and McDonald's (MCD) -) cook their burgers on a griddle. Burger King "flame grills" its burgers on a grill. That has been a key part of the chain's marketing for decades.
"At Burger King, we have been flame-grilling since the day we started in 1954. That's right since day one. We only use real fire to give you the beef patty you deserve," the chain proclaims on its website.
Burger King has leveraged that edge over McDonald's and Wendy's only at lunch and dinner. Now, the company plans to try to make flame-grilling a part of its morning menu. The chain has been testing a new line of Grill'Wich breakfast sandwiches in select markets.
"The Grill'Wich is much the same as the chain's current breakfast sandwich except for the fact that it comes on flame-grilled flatbread (complete with grill marks) instead of a biscuit or croissant. Other than the bread, you get your choice of sausage, bacon, or ham to go with American cheese and eggs," Brand Eating reported.
A single BK Grill'Wich with your choice of meats costs $3.99 while a double-meat version will set you back $4.59.
Burger King has mixed results
Over the past year, Burger King has actually gotten smaller. Restaurant Brands International CEO Josh Kobza addressed the issue during his company's third-quarter-earnings call.
"Our total net restaurant count declined by 2.8% year-over-year as we closed older and lower performing restaurants to support a more modern system increasingly run by better operators," he said.
"We saw flat traffic in Q3 and digital-sales growth of over 40% year-over-year, resulting in a record digital-sales mix of 14%, including 28% digital mix in our company-operated restaurants that have rolled out kiosks."
Kobza says a mix of marketing and menu innovation will drive the chain going forward.
"Growth this quarter was driven by solid calendar initiatives leaning into our core equities like the Whopper and You Rule, and the induction and the introduction of our Royal Crispy Wraps," he added.
"The team's focus on operations has led to continued improvements in guest satisfaction and an increase in product satisfaction across a few key offerings, including the Whopper, nuggets, and fries."
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