The
unintended consequences of a planned promotion can at time become a key drive
of ongoing strategy and that just might have been the case for Burger
King. With the launch of Grilled
Dogs
and other new products that have been a boon to Burger
King’s
comparable sales, which grew 4.6 percent during the first quarter, according to
the chain's parent.
The
one unintended consequence of the hot dog product introduction was a consumer
price point that was again attractive to consumers but may have resulted in a
reduction of overall average check. The flame-grilled hot dogs, which debuted
in February, have “quickly become guests’ favorites,” Restaurant Brands
International (RBI) CEO Daniel
Schwartz
told analysts last week.
In
addition Grilled Dogs have served as an entry point for new customers and are
ordered by guests as both an entree and meal add-on, Schwartz said, adding that
RBI is “really pleased” with the item’s performance. The hot dogs sell for
$1.99 or $4.49 as part of a combo meal slightly less than most burger offerings.
Product
launches have propped up sales at Burger King, as the chain attributed growth
during recent quarters to new products such as Fiery
Chicken Fries
and the Extra Long Jalapeno Cheeseburger.
The unintended
consequences of one product can provide a platform for long term growth.
Currently
Burger King is running its 10 Chicken Nuggets for $1.49 which is a product
price point that drives sales. Price
matters and Hot Dogs, Chicken Nuggets are both familiar items with a twist
which is branded differentiation. Don’t
worry about Burger King they are tracking success with a keen eye on the consumer.
Invite
Foodservice Solutions® to complete a grocerant program assessment, grocerant
ScoreCard. For brand, or product
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