Burger King’s Key to Ascension Revealed, Morgan Stanley Report Predicts Uninhibited Growth

Jan 19, 2016 12:28 AM EST | By Shilpa Chakravorty

Burger King might land as the third largest food chain in the United States with no one paying attention to it.

According to the latest report by Morgan Stanley, Restaurant Brands International, the parent company of Tim Hortons and Burger King is an "underappreciated story" which most people are misunderstanding.

Although Burger King's US sales are making headlines, yet, they represent only one third of the total business, and the total success can be attributed to the four factors, according to Business Insider.

#1: Cross Brand Collaborations

When Burger King acquired Tim Hortons, there was no crossover of the menus, but sharing of business strategies to help both the business reach a major market share.

"To grow our presence globally with Tim's, we'll continue to work with our existing partners as well as new partners to expand all around the world, similar to how we've scaled our Burger King brand over the last few years," CEO Daniel Schwartz mentioned last October while going over the third quarter earnings of the company.

#2: International Expansion

Presently, both the companies, namely Burger King and Tim Hortons are on an expansion spree. Last year, in the fourth quarter, Tim Hortons announced plans to open 150 locations in Cincinnati area as part of its expansion plan around the globe. Burger King, on the other hand is planning to reach out to new locations in countries like France, Ivory Coast, India and Morocco.

#3: Franchisees

Both the companies trust the franchisees they operate with explicitly. Presently, almost  100% of Burger King's outlets are franchisee owned and operated and Tim Hortons is aiming towards following that business model.

#4: Give Customers What They Crave

As with any product, Burger King also believes in customer satisfaction. This can be seen in their efforts of launching fewer, yet impactful products as opposed to cycling limited offerings.  By focusing on what the customers want, Restaurant Brands International has finally managed to gain a fair share of market in the food industry.

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