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The fast-food giant has reclaimed its place as America\u2019s second-largest burger chain, overtaking Wendy\u2019s and trailing only McDonald\u2019s in sales. <\/p>\n
The results demonstrate that Burger King\u2019s multi-year renovation and marketing campaign may be paying off.\u00a0<\/p>\n
\u201cBurger King U.S. was a standout performer this quarter with our elevation strategy driving another major step forward in sales and expanding our outperformance versus the industry to the high single digits,\u201d Restaurant Brands International CEO Joshua Kobza said in the parent company\u2019s Q2 earnings call this month. \u201cI\u2019m incredibly proud of what our teams and franchisees have accomplished so far this year.\u201d<\/p>\n
At the center of the strategy is Burger King\u2019s most popular menu item: the Whopper. In February, Burger King announced its first major makeover of the sandwich in nearly a decade. The new version includes a glazed bun, reformulated mayonnaise, and a sturdy new box. This month, the chain reported a 20% increase in sales since the revamped version debuted.\u00a0<\/p>\n
The upgrade package cost franchisees an estimated $4,000 a year, but Burger King urged operators not to pass that expense directly to customers, according to CNN. That decision matters in a competitive fast-food market where customers have grown intensely sensitive to price.\u00a0<\/p>\n
McDonald\u2019s is chasing the same value-conscious customer, but its efforts have been bumpier. CEO Chris Kempczinski acknowledged that a crowded calendar of menu launches and promotions had complicated restaurant operations and blurred the company\u2019s affordability message.\u00a0<\/p>\n
Wendy\u2019s faces a more severe challenge. The fast-food chain experienced six consecutive quarters of declining sales.\u00a0Its U.S. same-store sales sank 7% in the latest quarter, while Burger King\u2019s jumped 8.5% and McDonald\u2019s ticked up 0.8%.\u00a0<\/p>\n
In a recent Q2 earnings call, Wendy\u2019s CEO Robert Wright blamed \u201cquality degradation, challenges around our value offerings, inconsistent operations and marketing that is not driving customers to our restaurants\u201d for Wendy\u2019s failure.\u00a0<\/p>\n
The chain\u2019s woes have drawn the attention of activist investor Nelson Peltz, who is preparing a proposal to take Wendy\u2019s private, backed by BlueFive Capital and Flynn Group, according to the Financial Times<\/em>.<\/p>\n While Wendy\u2019s customers have been flocking to competitors, Burger King has benefited from a unique approach to customer service as well as a not-so-secret weapon: its own president.\u00a0<\/p>\n In February, the company announced a phone number that lets customers call or text Burger King President Tom Curtis directly with feedback. Burger King said Curtis will personally take as many calls as possible and that every message would be reviewed and answered to inform decisions across the business.\u00a0<\/p>\n \u201cGuests are our most important advisors,\u201d Curtis said in a statement. \u201cWe\u2019re grateful that they provide the feedback that is shaping our brand today and in the future.\u201d<\/p>\n In May, he said he had personally responded to 1,800 calls, part of more than 70,000 customer communications received by the company. Curtis credited that feedback with helping shape changes to the Whopper and broader restaurant upgrades. <\/p>\n While he\u2019s not the first executive to lend out his phone number to the public, the campaign debuted the same month that McDonald\u2019s CEO came under fire for a viral video posted to his personal social channels promoting the chain\u2019s new Big Arch burger. <\/p>\n Viewers mocked Kempczinski\u2019s taste test for his small bite and for referring to the sandwich as a \u201cproduct.\u201d Comments under the post included \u201cI deleted the McDonalds app after watching this,\u201d and\u00a0 \u201cNot a single calorie was consumed in this video.\u201d<\/p>\n Burger King posted a video of Curtis taking a rather large bite of the Whopper, followed by his commentary: \u201conly one thing missing, a napkin.\u201d Burger King told NBC News the video was unrelated to Kempczinski\u2019s taste test, which was posted a week prior.<\/p>\n<\/div>\nTom Curtis: customer service rep and president<\/h2>\n