Fast Food Gets Faster
Americans love their fast food, but one thing that makes it slightly inconvenient is that you have to drive to your local burger joint to get it. Now, fast food may get faster if Burger King has their way by offering delivery, also, in the states of Virginia and Maryland. Burger franchises like McDonald’s, Burger King, and Wendy’s are always creating new ways to deliver the same fast food in creative ways, but mainly focusing on food offerings. Burger King is now raising the bar by focusing on customer service by rolling out a test sales region for delivery of orders that reach the minimum of $8 to $10. The company is pricing the delivery service at $2 and hopes it will drive sales upwards.
Differentiation
The strategy is a way to differentiate between the main competitors in the fast food business that currently relies on walk-ins and a drive-through to service their customer base. By rolling out a trial phase, Burger King can assess whether the strategy is profitable at driving sales without creating too many expectations and expenses. For customers that may end up spending more than $2 on gas just to make their burger run, it could prove to be a good incentive to order from Burger King than a similar burger place down the road. However, it may end up costing Burger King more than they bargained for if the cost of gas gets so high that it affects their profit margin.
Technology Helps
Take-out and fast food places are just now learning how to incorporate high technology with good old-fashioned customer service to provide their customers with the best of both worlds. In Burger King’s case, they are offering the ability to place your order online or by phone. Once the order is placed, you can ask it to be delivered for an extra $2 charge if it meets the minimum price. There are some limitations to the delivery service. Breakfast foods, milk shakes, fountain drinks and coffee are not included in the delivery service. As more consumers become Internet-savvy the ability to reach a wider audience through this technology is key to grabbing market share and growing the business.
Fast Food Rules
The recession has caused many restaurants to fold under financial pressures and dwindling demand. However, that is not the case with fast food which continues to offer a cheap meal that almost anyone can fit into their budget. Burger King has seen an increase in revenues 1.4 percent last year in the third quarter as compared to the previous year. That totaled to $608.1 million, proving that when it comes to fast food, investment in new ways to generate sales can be highly profitable. Once Burger King tests the new service, it can decide whether the model will be something that it wants to expand nationwide. Should Burger King decide to expand across America, you can expect its leading competitors to also start seeing dollar signs by offering the same service. In the highly competitive world of fast food, when one chain finds a niche, the others are soon to follow.
Business Techniques January 25, 2012

