A Comparative Study on Wendy's and Burger King

...

Roughly a decade ago, McDonald’s began using a soy-corn blend of fats instead of beef tallow to cook its fries in an effort to reduce saturated fats. More than 100 million customers eat in a Burger King store each month, and 56 million of them order fries. While the chain had made minor adjustments, offering healthier sweet potato fries and curly fries, nothing matched the scale of reinventing the fries.

( http://en.wikipedia.org/wiki/Burger_King)

Purpose of the Project

To make right choice of product

The project would help the consumers to make right choice of the product as the consumers would be aware of the products, because the consumers would be well known of the ingredients of the product. The consumers would prefer the products which are nutritious, healthy, and tasty and ignore the products which contain more fats. Hence the consumers would make right choice or decision about the product.

To find out which company produces the best product and provides best services

The project contains the comparison between the two companies on the basis of their products. The rankings of the companies in different years provides, consumers the information about the qualities of the product produced by two different companies. Some companies provide home delivery services to the consumers. Through the rankings of the companies in different years and some services provided by the companies like home delivery of the product would make the consumers able to find out which company produces best product and provides best services.

To provide information to the fast food consumers

The project contains information of different companies like their financial status, strengths, weakness, opportunities, threats, performance, and the factors affecting the two companies like the political, economical, social, technological, ecological and legal factor which would inform the consumers about the different companies.

Significance of the Study

There are many significance of this study. United States of America is one of the rapidly growing economies in the world and it hugely contributes to the global economy in many ways. The study helps us to analyze our classroom knowledge in relation to the company and evaluate their business strategies. The study gives us knowledge and information of the fast food companies like their financial status, company’s corporate social responsibilities, company’s analysis etc.

Limitation of study

- Wendy’s and Burger king company has spread across the globe but not in our country.

-Although the two fast food companies are spread all over the world but it is not present in or country Bhutan.

- We were not able to collect the primary data

-The collection of primary data is not possible as those companies are not present in our country and it will incur lot of expenditure or simply it is expensive for collecting the primary data.

- The information about Wendy’s and Burger king was provided less in the internet.

-The Burger king and Wendy’s being a private company, its main focus would to earn as many profit as possible so they provide less free information in the internet and most of the information has to be purchased.

- Few survey were done between Wendy’s and Burger king

-Only few surveys were done from internet and we only got secondary survey. We were not able to do survey because there was less customer who consume fast food in our country.

CHAPTER 2: BACKGROUND[pic 3]

Background of Wendy’s

Wendy’s now known as the Wendy’s/Arby’s Group after the merger of the two companies now comprises the third largest quick service restaurant company and is comprised of the two brands Wendy’s and Arby’s, generate about $12 billion in system wide sales and comprise over 10,000 restaurants. The industry as whole is dominated by what is termed the “big four” which comprises McDonalds, Burger King, Wendy’s/Arby’s Group, and Yum Brands. Currently, McDonalds has gained the most attention among businesses within the quick service industry which is shown through their strong advantage in market penetration as well as total revenue, while the Wendy’s has been generally recognized as the leader in quality and customer service.

Wendy’s started out as a single store in downtown Columbus, Ohio and from inception was born placing utmost importance on providing quality so much in fact that founder Dave Thomas put the phrase “quality is in our recipe” was placed in their logo . Today, there are approximately 6,600 Wendy’s restaurants in operation in the United States and in 21 other countries and territories. Wendy’s has seen slow but steady growth but financially and intuitionally, since their start in 1969 by reaching the milestones of going public in September of 1976, going global in 1988, and reaching 5000 stores by march of 1997.

Background of Burger King

The predecessor to Burger King was founded in 1953 in Jacksonville, Florida, as Insta-Burger King. After visiting the McDonald brothers' original store location in San Bernardino, California, the founders and owners (Keith J. Kramer and his wife's uncle Matthew Burns) purchased the rights to two pieces of equipment called "Insta" machines and opened their first restaurants, based around a cooking device called an Insta-Broiler. The Insta-Broiler oven proved so successful at cooking burgers, they required all of their franchises to use the device. After the company faltered in 1959, it was purchased by its Miami, Florida franchisees, James McLamore and David R. Edgerton. They initiated a corporate restructuring of the chain, first renaming the company Burger King. They ran the company as an independent entity for eight years (eventually expanding to over 250 locations in the United States), before selling it to the Pillsbury Company in 1967.

Pillsbury management tried several times to restructure Burger King in the late 1970s and early 1980s. The most prominent change came in 1978, when Burger King hired McDonald's executive Donald N. Smith to help revamp the company. In a plan called Operation Phoenix, Smith restructured