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Burger King's Real Problems

  • Forbes , Friday, April 6, 2012 10:30 AM

Burger King can't get arrested. Forbes contributor David Vinjamuri writes that the company's decision to pull its new ad for Chicken Wraps starring singer Mary J. Blige looks like a panic move. 

The real problem evinced by its quick pulling of the ad is that BK is in trouble, Vinjamuri writes. "It has had three owners over the past dozen years including two different private equity groups. It failed to meet the challenge of changing consumer tastes as chains like Subway and Starbucks grew their food business dramatically." He notes that five years ago, Burger King was the second largest fast food chain in the U.S.  Now Subway and Starbucks have taken the #2 and #3 positions.

"The real problem for Burger King is that it appears to have no strategy. The big advertising campaign that caused the kerfuffle with Blige was to introduce a brace of me-too products that competitors already carry: chicken fingers, wraps, smoothies, frappes and salad. " 

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