Friday, August 19, 2011

God Save the King: BK’s Health Surge Signals End of Fast-Food Monarchy

The nation mourns today after Burger King executives broke into the guarded top
floor of the fast food chains corporate headquarters in Miami, Fla., on Thursday
evening and assassinated the King in a shocking coup détat. Releasing a
statement Friday morning regarding the deposition of the long-standing monarchy,
senior marketing vice president Alex Macedo said, People want a reason to go
back to Burger King. He and his conspirators plan to reignite public support of
the organization by introducing a healthier line of menu items, but the plan is
foolhardy. The King was beloved by his people. He was a benevolent and kind
leader whose kingdom of meat and cheese was built in the name of his subjects.
He ruled not with an iron fist, but instead insisted that all should have it
your way. Falling prey to regicide is an ignoble end for a great man. The King
wasnt really murdered, of course, but he was indeed shown the door. Burger King
is kicking off a new marketing blitz that aims to change public perception of
the company as a purveyor of dangerously unhealthy fast food to a distributor of
mom-friendly gourmet items. The centerpiece of the push is the California
Whopper, a burger with guacamole on it. While a greasy patty smeared with mashed
avocado isnt what most medical professionals would call a cure for hypertension,
it is good advertising. The actual new television commercials for the burger are
just of vegetables and other ingredients being washed and prepared. Robert
Passikoff of consumer surveying group Brand Keys told USA TODAY that the
health-conscious strategy likely will work out for Burger King. There was a time
when price was king. Now healthy choices and quality drive the category, he
said. With same-store sales down 6%, Burger King certainly needs something to
change. Whats most interesting about the shift in image, though, is it indicates
a broader turn away from the mascot-oriented branding that has surrounded
fast-food chains for nearly two generations. McDonalds (NYSE: MCD ) has been
criticized for years for not retiring Ronald McDonald as its mascot character,
with detractors insisting the eerie clown was a tool for addicting children to
unhealthy food. Consumer trends seem to be ending the marketing potency of
characters like Ronald and the King quickly, though. McDonalds introduced its
own healthy menu options earlier this year, and its same-store sales were up
close to 3% in the first quarter. Will Yum Brands (NYSE: YUM ) do away with the
Colonel at KFC and stop selling people sandwiches made entirely out of fried
chicken and cheese? Will Wendy s (NYSE: WEN ) do away with the smiling visage of
Dave Thomas pigtailed daughter and stop pouring molten cheddar on baked
potatoes? Should Jack at Jack in the Box (NASDAQ: JACK ) be worried for his
life? If Burger Kings sales jump after ending the monarchy, these changes all
could be on the horizon. As of this writing, Anthony John Agnello did not own a
position in any of the stocks named here. Follow him on Twitter at

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