Burger King Tries “King Deals” Value Tactic

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In line with its stated intention to focus more attention on value pricing, Burger King is testing consumer response to a daily-discount program it already has in place in the UK and Canada.

The “King Deals” tactic testing in select markets offers a different discounted meal on each weekday as a sort of rapid-fire limited-time-offer series. In the UK the promotion is called “King of the Day” and structured at a £1.99 price (roughly $3) on a different sandwich daily (including weekends). Similarly in Canada, King Deals discounts seven different sandwiches, one per day, to $1.99.

But in the U.S., Burger King’s “King Deals” offer one of five different combo meals each day, with each priced at $4.99. The combos include small fries or onion rings and small fountain drink. Weekends are not included. Franchisees no doubt prefer the U.S. combo approach to this tactic since fries and fountain drinks have much higher margins than sandwiches.

The rotation starts with a discounted TenderCrisp Chicken Sandwich on Monday, followed by the Original Chicken Sandwich (Tuesday), Whopper (Wednesday), 5-piece Chicken Strips (Thursday) and Premium Alaskan Fish Sandwich (Friday).

Burger King Worldwide recently reported solid results for 2012, including a 3.5% gain in same-store sales for U.S./Canada stores. But North America President Steve Wiborg said first-quarter 2013 sales were soft because Burger King had been caught a little off guard by competitors’ heavy emphasis on low-end menu products (such as McDonald’s Dollar Menu). He vowed to put increased focus on value pricing. A price reduction to just $1.29 for the Whopper Jr. was a first step.

Source: Burger Business

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