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Burger King’s chicken sandwich marks a shift in chain’s menu strategy away from promotions

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Burger King’s chicken sandwich marks a shift in chain’s menu strategy away from promotions

Burger King’s new chicken sandwich “Ch’King” is considered on display in Contemporary York, NY, May 19, 2021.

Aleksandra Michalska | Reuters

Early Newspaper

When Burger King launched the Ch’King nationwide earlier in June, it wasn’t fair releasing a new chicken sandwich.

It was also marking a shift in the burger chain’s menu strategy, according to Jose Cil, chief govt of Burger King’s parent company, Restaurant Brands International.

“Our focal point on menu is shifting from promotional to foundational, doing the hard work on the core menu offering to make obvious that we have great-tasting meals that our customers can rely upon, day in and day out,” Cil said at the Evercore ISI User & Retail Summit on Thursday.

He famous that average unit quantity of a Burger King location rose from roughly $1 million in 2011 to $1.3 million by 2018. The burger chain achieved that by going after “low-hanging fruit,” he said, such as deals and restricted-time menu items. Cil served as president of Burger King from 2014 to 2019, when he was handed the reins of Restaurant Brands.

“I was at the helm of it, so I’m fully in charge and owning as much as the outcomes of that, however we have now been very eager on promotional work,” Cil said.

In the burger chain’s first quarter this year, it reported U.S. same-retailer sales growth of 6.6%, helped by last year’s weaker results after lockdowns began hitting its sales.

But to unencumber the following level of growth, the company is going to work on the foundations of the business, including its core menu. For example, it took two years to earn the Ch’King, perfecting the handbreaded chicken sandwich’s recipe and ensuring that making it’s miles as easy as that you can imagine for restaurant staff, Cil said.

“I think the advance of that product and how we have now launched it wants to be an indicator of how we’re thinking about and reprioritizing the business at Burger King,” Cil said.

Burger King’s sister chain Popeyes has came across great success with its chicken sandwich. For 1½ years after its 2019 launch, the fried-chicken chain reported double-digit quarterly same-retailer sales growth, fueled by the energy of the sandwich.

Shares of Restaurant Brands have risen 11% this year, giving it a market value of $31.4 billion. Domestic sales at its brands Burger King and Popeyes have bounced back mercurial from the pandemic, however at its Canadian coffee chain Tim Hortons, sales are taking longer to get better as Canada extends its lockdowns.

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Burger King’s chicken sandwich marks a shift in chain’s menu strategy away from promotions