Who is the CEO of Burger King?

Who is the CEO of Burger King?

Burger King is an international fast food restaurant that can consider itself one of the most recognisable brands in the UK. This has made it a popular investment target among those who hope to become restaurant franchisees. Here, we take a look at the history of the company, who runs it, and what investment opportunities are available.

What is Burger King?

Burger King is a US-based fast food chain that specialises in hamburgers. It has its headquarters in Miami-Dade County in Florida and is the principal asset of the global Restaurant Brands International groups portfolio. It is considered one of the largest fast food brands in the world, though recent years have proven particularly challenging for the company.

Its most popular products include the Whopper the brands signature hamburger, which is served in a sesame seed bun with mayonnaise, pickles, and salad. Customers can customise their Whopper with a variety of sauces and extras, giving them complete control over how their burger turns out. Other choices include the Rodeo Cheeseburger and chicken sandwiches. The business has a long history of refreshing the menu by introducing regional specialities or limited-run specials, some of which have proven so popular that theyve earned themselves a place on the permanent menu.

A brief history of Burger King

The original restaurant (that would later become the first in the Burger King chain) was launched in Jacksonville, Florida, in 1953, under the name Insta-Burger King. Keith J Kramer and Matthew Burns established this location after they visited the original McDonalds restaurant in California. Drawing inspiration from the fast food revolution that the McDonald brothers were pioneering, they returned to Florida and decided to start their own business.

Though the company experienced some early success, it ran into trouble in 1959 and two of its franchisees, McLamore and Edgerton, purchased the business. They were the two individuals responsible for changing the name to Burger King and instituting the radical restructuring that allowed the business to grow at a remarkable rate over the following few decades. By the time they sold the business in 1967, the company had 250 locations spread across the USA.

The 70s were a period of great growth for the company and the business new CEO, Donald N. Smith, introduced a bigger menu, rewrote the franchise agreements, and revamped the restaurant design. However, Smith left to join Pepsi in 1980, marking the start of a period of decline for the company.

By the turn of the millennium, Burger King had exchanged hands many times and was suffering from a lack of attention and poor performance. In 2002, TPG Capital purchased it for $1.5 billion, and attempts were made to reverse the brands decline. However, the economic downturn hampered these efforts. In 2014, Burger Kings new owners bought Canadian chain Tim Hortons and merged it with Burger King, to expand both brands financial power.

Who is the CEO of Burger King?

The current Burger King CEO is Daniel Schwartz, who was born on Long Island, USA, in 1982. He graduated from Cornell University with a BS in Applied Economics and Management. Having started as an analyst with the investment firm 3G Capital, he quickly worked his way up through the organisation's hierarchy and was of sufficient seniority by the time 3G acquired Burger King in 2010 that he led the team arranging the acquisition and closed the deal. Upon doing so, he was appointed the deputy CFO of Burger King.

Schwartz was quickly promoted to CFO and set to work organising the creation of Restaurant Brands International (RBI), one of the largest quick service restaurant groups in the world. When Burger King and Tim Hortons merged, Schwartz became CEO of RBI and, as a result, the CEO of Burger King, too.

Burger King CEO salary

As of 2017, Daniel Schwartz was earning a salary of $800,000. However, like most CEOs, his total annual compensation figure is far higher than this. In total, Schwartz is compensated to the sum of $4,152,266. This includes an annual cash compensation of $2,660,748 on top of $1,491,518 of restricted stock awards, making him one of the more handsomely rewarded CEOs in the fast food sector.

Does Burger King offer franchising opportunities?

Burger King does offer franchising opportunities in the vast majority of its domestic and international markets. This includes the UK. Most Burger King restaurants are privately owned franchises, with a large percentage operated by small franchisors. However, many franchisor groups have grown to such an extent that they could be considered corporations in their own right.

Burger King uses various franchise models to facilitate expansion, though a significant number of its international arrangements are operated under master franchising agreements. This means that one individual or organisation holds the rights to sub-licence franchise units in that given territory.

What level of investment is required to open a Burger King franchise?

To become a Burger King franchisee, youll need anywhere between £250,000 and £800,000. The precise level of investment required depends on the size and location of the premises, as well as how many restaurants you plan to open in the long-term. Burger King looks favourably upon those investors who wish to sign a multi-unit agreement that commits them to open a larger number of restaurants over a set period. On top of this, 4.5% of gross sales will be payable as royalty fees and a further 4% of gross sales will be taken to finance the advertising in the local area.

What kind of franchisee is Burger King looking for?

While Burger King franchisees come from all over the world and boast a wide variety of backgrounds, all are united by their determination and drive to succeed. Applicants will have to demonstrate this desire and commitment to enrol on the franchisee training programme. Similarly, franchisees will need to be able communicators and have experience working in a management role.

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