restaurants

Value Push, IPhone App Among BK's Latest Moves

bk appBurger King's latest contributions to the constant stream of fast-food industry marketing volleys include an expedited strategic value push, a BK iPhone ordering application, three new kids' meal items, and a series of day-long events for urban families.

BK is responding to downward pressure on sales resulting from the heavy value-oriented strategies of McDonald's and Wendy's by implementing its own greater emphasis on value-driven marketing next month -- several months earlier than originally planned, according to a Dow Jones/CNNMoney.com report.

The plan calls for shifting more advertising spending to supporting value-priced items such as the new BK Shots mini-burgers and the $1 Whopper Jr., a notable change from the chain's strategy of devoting about two-thirds of its advertising budget to supporting higher-priced items like the successful "Angry Whopper" sandwich.

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In mid-April, BK had announced that it would up advertising expenditures by 20% to 25%, starting in January, to promote its value offerings and several product launches -- including a "game changing" extra-thick burger, bone-in ribs, grilled fish sandwiches and a new grilled chicken sandwich.

BK is also making news with its introduction of a branded iPhone app for mobile ordering. The application, which uses a platform developed by restaurant industry technology provider GoMobo, enables iPhone users to automatically log in and locate nearby BK locations for mobile pre-ordering, and generates promotions and incentives based on individual order history. (GoMobo CEO Noah Glass told QSRmagazine.com that now that the platform exists, other restaurants could create their own branded iPhone ordering apps in a matter of a couple of weeks.)

Along with Subway and other QSR chains, BK had already established BurgerKingNow.com that enables ordering online or by texting from any mobile phone, also on a GoMobo platform.

On the menu front, BK announced that it has added three new selections to its BK Kids Meals menu that comply with the nutritional standards it committed to, under the Council of Better Business Bureaus Children's Food and Beverage Advertising Initiative, for meals advertised to kids under 12. One meal offering that complies with the standards -- which include a maximum of 560 calories per meal, under 30% of calories from fat, under 10% of calories from saturated fat and other criteria -- had been already in place.

One of the new multi-item kids meals features a two-pack of BK Burger Shots, another a standard hamburger, and a third with four pieces of reformulated Chicken Tenders. The new kids' meals are among a variety of nutritional improvements being implemented as part of the chain's "Positive Steps" program.

In addition, BK last week launched a series of day-long "FamFest" events designed primarily to attract African-American families. The events -- scheduled to take place in six cities between now and the end of June -- feature family activities, performances by popular R&B performers and comedians, and ample opportunities to sample BK products.

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