Who is the CEO of Burger King?

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Who is the CEO of Burger King?

Burger King is an international fast food restaurant and one of the most recognisable brands in the UK. This has made its investment opportunities popular 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, although 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-edition specials, some of which have proven so popular that theyve earned themselves a place on the permanent menu.

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A Brief History of Burger King

The original restaurant which 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.

Although the company experienced some early success, it ran into trouble in 1959 and two of its franchisees, McLamore and Edgerton, purchased the business. They changed the name to Burger King and initiated the radical restructuring that allowed the business to grow at a rapid rate over the following few decades. By the time they sold the business in 1967, the company had 250 locations across the US.

The 1970s were a period of great growth for the company. The business new CEO, Donald 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 brand awareness 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 the 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 in Long Island, US in 1982. He graduated from Cornell University with a degree 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 to lead the team arranging the acquisition and close the deal. Upon doing so, he was appointed the deputy CFO of Burger King.

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

Burger King CEO Salary

As of 2017, Daniel Schwartz is 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 in restricted stock awards, making him one of the most 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, including the UK. It uses various franchise models to facilitate expansion, but a significant number of its international arrangements are operated under master franchise agreements. This means that one individual or organisation holds the rights to sub-license franchise units in that given territory. Many franchising groups have grown to such an extent that they could be considered corporations in their own right.

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

To become a Burger King franchisee, youll need between £250,000 and £800,000 of capital. 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 future. Burger King looks favourably upon investors who are willing to sign a multi-unit agreement that allows them to open a larger number of restaurants over a set period. On top of the initial investment, 4.5 percent of gross sales will be payable as royalty fees, and a further 4 percent 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 Kings franchisees come from all over the world and have a wide variety of different backgrounds, all are united by their determination and drive to succeed. Applicants will have to demonstrate that they have the same level of commitment in order to be enrolled onto the franchisee training programme. Similarly, franchisees will need to be good communicators and have experience working in a managerial role.

Alternative Franchise Opportunities

Theres no getting away from the fact that to become a Burger King franchisee, you have to invest a significant amount of money. If thats just not possible for you, there are some alternative franchises that you could get involved in. What follow are three of the best options for prospective franchisees with a lower budget.

Loaded Burgers

This is a franchise that aims to load up its customers with hearty burgers to rival leading brands. Sad, processed patties garnished with rubber-like cheese are banished from the kitchens of this franchise, which prioritise high-quality meat and a wide selection of toppings. Everything is freshly made, and most menu items are priced at under £10, so customers can find reasonably priced, excellent food at Loaded Burgers.

Since its launch in 2014, the business has developed three branches, in Ilford, Stoke Newington and Liverpool, but it is looking for entrepreneurs to bring its offering to new markets. If youre to make the cut, youll need great managerial skills and a passion for the industry, as well as £150,000. As a Loaded Burgers franchisee, youll gain access to the business proven systems, enrolment onto its training scheme and support in marketing and sales.

Wimpy

Say the name Wimpy, and many people think of burgers. This legendary American franchise dates back as far as 1934 and has been operating in the UK since 1954. As well as burgers, it sells salads, toasties, breakfast dishes, milkshakes and indulgent desserts. For many people, it is a go-to restaurant for delicious comfort food. Wimpy has been recognised on a global scale since 1970 and, in 1985, became the first burger chain in the world to offer meat-free burgers.

Wimpy is looking for business-oriented entrepreneurs with previous managerial experience. If this sounds like you and youd like to open your own Wimpy franchise unit, you have two options. With an investment of £220,000, you can launch a standard, 60-seat restaurant, or you could open an express unit for £80,000. Once youve made the investment, youll get two weeks of training to make sure youve got everything it takes to run a profitable business.

Subway

You might be surprised to hear that you can launch your very own Subway store for under £200,000. Subway is the second largest food brand in Europe and one of the largest in the world, with over 43,000 outlets across more than 110 countries.

On average, around 70 percent of new Subway outlets are launched by existing franchisees, which demonstrates that the business franchise model is held in high regard by those already working within it. Subway gives franchisees the freedom to choose where they situate their new store; the options include locations in shopping centres; retail, industrial or business parks; hospitals; university campuses; transport terminals; sporting facilities; amusement parks; and petrol stations.

If you decide to join Subways franchise network, you can adapt the size of your outlet to suit the site you choose, reducing it to 300 square feet or expanding it to 2,000 square feet. Depending on the size of your proposed store, youll need to invest between £100,000 and £200,000. And once youre on board, youll receive two weeks of training from Subways franchise team.

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