4.0 ALTERNATIVE STRATEGIES
1. Increase average unit sales
2. Accelerate Net Restaurant Growth (NRG) and continued sales growth
3. Global Refranchising
1. Increase average unit sales
An increased average unit sale per transaction is the result of completing every salewhere the customer makes an informed purchase. If a customer leaves your store following an incomplete sale then who suffers? First, the store suffers because of the lost opportunity to increase the value of the sales transaction. And secondly, the customer suffers because he or she may not have been well-served with the purchase that was made. In Burger King, we would like to emphasize on four key areas which are menu, image, marketing communication and operations.The strength of our menu has been built upon our signature flame-grilled cooking process, which we believe results in better tasting burgers.We believe that with the introduction of new image will drive store sales, higher profits and strong return on invested capital.We have established a data driven marketing process which is focused on driving restaurant sales and traffic, while targeting a broader consumer base with more inclusive messaging.By restructuring the current field teams, it will significantly increase our field presence and restaurant visits by reducing the span of control of our field teams.
2. Accelerate Net Restaurant Growth (NRG) and continued sales growth
Net Restaurant Growth or NRG is defined as the change in system restaurants as of the end of a given period compared to the end of the prior period. This change is composed of new restaurants opened, less restaurants closed during the period. In Burger King, it accelerates NRG by creating Master Franchise JVs and Development Agreements. Master franchising is a method that has been employed by most franchise systems. The operational efficiency of these systems, with their distinctly complex organizational form, benefits from increased growth rates of the sub franchises.
3. Global Refranchising
Taking a franchise brand international is, in a sense, the final frontier for growth. It's where many franchise brands that have begun - and been successful - in the U.S turn when they seek expansion. It's a strategy that often occurs in part because of growth that has saturated domestic markets and territories. Typically, larger more established franchise brands begin looking across borders for untapped markets and potential growth.In Burger King, we believe the refranchising strategy will continue to enhance our cash flow, accelerate the re-imaging initiative and strengthen relationships with key franchisees