He said that this year's marketing mix will be much more even,
in that it's not dedicating a huge portion of marketing dollars to
specific quarter like it did last year for a menu overhaul. He also
said that the company plans to roll out more menu innovations this
year.
In fact, Burger King warned that April sales will be difficult
to match because of the menu. The chain launched and advertised it
biggest-ever menu rollout -- introducing McDonald's-esque
products like smoothies, frappes and snack wraps -- in April last
year with a campaign that included ads featuring Jay Leno, David
Beckham and an ill-fated spot with Mary J. Blige.
Overall, the company reported global same-stores sales down down
1.4% in the first quarter versus a 4.6% increase in the first
quarter of 2012. The 3% falloff in same-store sales in the U.S. and
Canada compares to a 4.2% hike in the first quarter of 2012. Like
many fast-food chains, Burger King faced difficult first-quarter
comparisons because of last year's unusually mild winter weather,
which brought more customers to the stores than is typical for the
season.
Despite a slide in sales, Burger King's profits soared, thanks
to cost-cutting of restaurant expenses. Net income rose to $35.8
million in the first quarter, up from from $14.3 million last
year.
The new menu campaign was created by Mother, which in February
became its lead agency. It also recently named
Alison Brod PR to handle consumer public relations. The company
last summer began sniffing around other agencies, enlisting shops such as Pereira & O'Dell
to work on projects. Burger King then in the fall began a somewhat
more formal search process to find an agency to
help it develop more big-idea work.
Fast -food chains so far this year have been pushing continual
value-centric marketing, in part in hopes of mitigating tough
comparisons because of last year's weather. McDonald's, by far the
biggest fast-food chain, focused heavily on value promotion in the
first quarter, particularly its dollar menu, even adjusting its
marketing calendar late last year to accommodate the value
messaging. Wendy's this year has also been promoting a value
message, but has been focusing more on value as "more than a low
price," according to a recent ad. Its new Right Price, Right Size
menu has been marketing prices that range from 99 cents to
$1.99.
Burger King also switched up its management in the quarter,
naming Mr. Macedo, a former marketing executive, as president of
North America. Bernardo Hees, current chief exec of Burger King,
will take on the role of chairman this summer after he moves on to
become CEO of H.J. Heinz, once the acquisition of the ketchup
company by Berkshire Hathaway
and 3G Capital, the Brazilian firm that acquired Burger King in
2010, is complete.
