Burger King's new menu _ a lot like McDonald's

Associated Press Modified: April 2, 2012 at 7:31 pm •  Published: April 2, 2012
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MIAMI (AP) — Burger King is trying to revive its ailing empire with a rival's recipe for success.

After years of lackluster sales of its Whoppers and fries, the struggling fast-food giant on Monday launched 10 food items in its biggest menu expansion since the chain was started in 1954.

But there are unmistakable similarities between Burger King's new lineup and the offerings its much-bigger rival McDonald's has rolled out in recent years. The Golden Arches already rolled out specialty salads in 2003, snack wraps in 2006, premium coffee drinks in 2009, and fruit smoothies in 2010.

Burger King doesn't deny that its new chicken strips, caramel frappe coffees, Caesar salads and strawberry-banana smoothies sound pretty close to those on McDonald's popular menu. But executives say the company came up with them through its research.

"Consumers wanted more choices," said Steve Wiborg, president of Burger King's North America operations. "Not just healthy choices, but choices they could get at the competition."

The menu additions are part of Burger King's plan to abandon its nearly single-minded courtship of young men, who were once the lifeblood of the industry but were hard hit by the economic downturn. Competitors went after new customers with breakfast items and healthier fare, but Burger King let its menu get stale. As a result, Burger King for the first time was edged out by Wendy's last year as the nation's No. 2 burger chain. McDonald's solidified its hold on No. 1.

To stem the decline, Burger King executives last year decided to modernize the 7,200-restaurant chain's aging stores, redesign worker uniforms with aprons so they stay clean and even serve the iconic Whopper in cardboard cartons instead of paper wrapping for the first time in more than 20 years. Food, however, is at the heart of their plan.

The revamp is nevertheless a gamble. Burger King's new food could be a flop, and of course, the chain is already late to the party.

"Being an innovator is critical in the fast-food industry," said Darren Tristano, an analyst for the food industry researcher Technomic Inc. But in recent years, he said Burger King has been more of a follower.

Eddie Yoon, a principal at consulting firm The Cambridge Group said companies like Burger King that come out with similar products as their rivals can be successful only if they offer lower prices or superior taste. But if it's merely a "me too" strategy, he said Burger King's venture could fall flat.

"You can have football teams, and just because they're both running the same offense it doesn't mean it will work the same," said Eddie Yoon, a principal at The Cambridge Group, a growth consulting firm.

THE RAMP UP

The fast-food industry has undergone a shift in recent years. Just five years ago, the top three fast-food companies were all burger chains. But concerns over obesity have paved the way for competitors like Subway, now the second-biggest chain, and Starbucks, which climbed up the rankings to the No. 3 spot. Smaller players such as Five Guys, which sells made-to-order burgers, are gaining ground too.

McDonald's quickly adapted. The world's biggest burger chain reinvented itself as a hip, healthier place to eat by offering wireless Internet and rolling out a string of hit menu items such as fruit smoothies, iced coffees and oatmeal.

Burger King failed to keep up. Its share of sales among burger chains fell from 17 percent a decade ago to 12 percent last year, according to Technomic. McDonald's share rose from 42 percent to 50 percent.

All Tom McDonald had to do was look at Burger King's competitors to see why sales at the chain were falling. A Burger King franchisee since 1989, McDonald said the chain's menu hadn't changed much over the years.

"We were getting behind with the wraps and salads that were coming on the market," said McDonald, who owns 19 franchises. "We had salads, but they weren't as good as the competition. We focused on burgers maybe longer than we should have."

McDonald said he expressed his concerns at the company's failure to keep up with the times. But the Miami-based chain had gone through a series of owners over the years, and McDonald said he got little response from corporate about addressing the problems.

He said the attitude from the top changed last year after New York-based private equity firm 3G Capital bought Burger King in late 2010. That's when Burger King assembled a group of 15 key executives, franchisees and suppliers to evaluate the chain's menu, item by item.

The process, which took three months of daylong meetings, was grueling at times. One day, for example, the group sat through a lengthy presentation complete with charts and graphs on how oils and eggs affect the quality of mayonnaise. A blind taste test of 30 varieties followed. The verdict: They liked the one Burger King was already using.