Burger King's 'How We Serve a King' Campaign Launched; McDonald's Franchisees Question $5 Meal Sustainability

McDonald's franchisee group asserts that the $5 value meal can't last without company investment, while Burger King emphasizes customer satisfaction with its "How We Serve a King" campaign.

McDonald's Franchisee Group Asserts $5 Value Meal Unsustainable Without Corporate Investment

An independent advocacy group of McDonald's franchisees has weighed in on the firm's impending value meal promotion, praising affordability for consumers while urging future contributions from the corporation to make the cheap offering sustainable for operators in the long run, CNBC reported.

“The fact remains that in order to provide the consumer with more affordable options, they must be affordable for the owner/operators. McDonald’s vast resources and financial investment are essential to any sustainable affordable strategy,” the board of the National Owners Association wrote in a letter to the membership.

The letter refers to McDonald's business model as a "penny profit business, with 10-15% margins" and states that there is insufficient profit to discount 30% for this model to be viable. It requires a financial contribution from McDonald's."

Last week, CNBC reported that the $5 value meal would be available on menu boards beginning June 25 and lasting approximately a month. The meal will feature a McChicken or McDouble, four chicken nuggets, fries, and a drink. The combination would cost far less than purchasing the goods separately.

The offering comes as lower-income consumers withdraw from some restaurants due to persistent inflation, and companies seek to provide greater customer value.

According to CNBC, Coca-Cola increased marketing dollars to make the transaction more appealing to McDonald's and its franchisees after the initial plan failed to clear internal barriers. Coca-Cola stated this week, "We routinely collaborate with our customers on marketing programs to meet consumer needs." This allows us to expand our businesses together.

The company has stated that cash flows for U.S. franchisees have increased by over 50% on average since 2018. Even after accounting for inflation, according to earlier statements, 2023 was one of the strongest years for franchisee cash flow in McDonald's history.

Beyond the $5 promotion, the NOA letter suggests that the corporation continue to innovate on the menu, bringing back things like snack wraps made with existing chicken breasts and providing affordable options with lower food prices so owners can sell them.

The panel also advised taking the top two beverages from McDonald's spinoff company CosMc's and introducing them to flagship locations to thrill consumers and staff.

The advocacy group first proposed these suggestions earlier this year when it sought to provide affordable options to the menu without undermining "core and iconic" items.

“Recently [McDonald’s CEO Chris Kempczinski] has made public comments about the US consumers’ growing need for affordability. This is not a new or unique message; value has always been at our Brands’s core,” NOA said in a letter to membership viewed by CNBC in February.

Burger King Launches Texas BBQ Bacon King Burger, Emphasizing Quality and Customer Appreciation

Meanwhile, Burger King, the Home of the Whopper, is known for serving the greatest burgers in the Quick Service Restaurant (QSR) category, replete with endless drinks and creamy mayonnaise that consumers like. The brand sets the industry standard for quality and taste, boasting that all its burgers contain 100% flame-grilled beef patties and natural ingredients free of preservatives, colorants, and fillers, as per BizCommunity,

In addition to its great menu selections, Burger King® frequently runs promotions and interesting deals with significant discounts through its App to express gratitude for its customers' continuous support.

To bring these values to life, Burger King® has collaborated with South African celebrities and influencers Pearl Thusi, Cassidy Nicholson (A Girl Named Cassidy), Nadia Jaftha, and Darren "Whackhead" Simpson to create engaging content emphasizing Burger King's® commitment to customer service and announcing the launch of the new Texas BBQ Bacon King Burger.

The Texas BBQ Bacon King Burger consists of two flame-grilled beef patties, crispy bacon, Burger King's iconic onion rings, tangy BBQ sauce, melted cheese, and creamy mayonnaise, all sandwiched between toasted sesame seed buns. This concept seeks to thrill taste buds while solidifying Burger King's® image as a culinary innovator.

"When Burger King® says 'How We Serve a King,' it's our way of emphasizing that our customers are more important than royalty to the brand. We are committed to providing an exceptional dining experience that exceeds expectations and leaves a lasting impression on everyone who walks through our doors, ensuring they receive royal service,” said Ezelna Jones, marketing manager for Burger King South Africa.

Photo: Brett Jordan/Unsplash