Burger King plots $400 million brand overhaul with major new ad commitment

Burger King is making a major new investment in advertising as part of a $400 million, two-year brand overhaul in the U.S. that includes marketing, menu and restaurant upgrades. The plan, called “Reclaim the Flame,” includes $120 million in additional ad spending in the next two years, which equates to a 30% annual uptick to its current spend, a figure the fast food chain announced is “inclusive of advertising efficiencies we expect to achieve through our ongoing partnership with our new media agency.” Burger King spent $227.2 million in measured media in the U.S. in 2021, down from $286.2 million the year prior, according to figures from Kantar. The chain’s measured spending came in at $101.1 million in the first half of 2022, down from $116.4 million in the same period last year. The new investment comes about four months after Burger King hired Omnicom Group's PHD as its media agency and OKRP as its creative agency of record. Today’s announcement, which summarizes plans shared this week at BK’s annual franchisee convention, outlines much of what the two agencies will be charged with putting into market, as the fast feeder seeks to spur more traffic to its 7,000-plus U.S. locations. The goal is to refresh and modernize the BK brand, “adding meaning and relevance to historical brand anchors like ‘Flame Grilling’ and ‘Have it Your Way,’ while also introducing new brand elements to broaden its attraction for a younger and more diverse base of guests,” according to a company statement. BK’s new plan includes a $250 million “Royal Reset,” covering restaurant technology, kitchen equipment, building enhancements and “high-quality remodels and relocations.” “Our plan is focused on a few important priorities—operational excellence, refreshed image, and enhanced marketing—that when put together, provide a superior experience for our guests,” stated Tom Curtis, president of Burger King North America. BK also plans to pour $30 million into its app to improve its “Royal Perks” loyalty program, as well as adding personalized offers and upgrading “the overall convenience of delivery and pick up options,” according to the announcement. The chain at present generates about $900 million in annual systemwide sales from its digital channels in the U.S., it reported. Total U.S. systemwide sales in 2021 were $10 billion. Menu priorities include investing in what the chain described as “premium branding to reaffirm the elevated position of its flame-grilled Whopper,” as well as developing new flavor extensions. Burger King also stated that it is building a "destination worthy" chicken sandwich portfolio. The overhaul follows marketing leadership turnover at the chain, which saw Yosef Hojchman step in as interim chief marketing officer last fall when Ellie Doty, chief marketing officer for North America, left Burger King after just over a year. Doty's departure came after both Global CMO Fernando Machado and Global Chief Brand Officer Paloma Azulay left Restaurant Brands International, Burger King’s parent company. In the second quarter, Burger King’s same-store sales rose 0.4% in the U.S. and 18.4% outside the U.S., giving it global same-store sales growth of 10%. Rival McDonald’s posted 3.7% growth in U.S. same-store sales and 9.7% global growth for the same quarter. Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here

Burger King plots $400 million brand overhaul with major new ad commitment

Featured Stories