QSR May 2023

BURGER KING’S COMEBACK

After retiring from Domino’s in 2018, leaving the Michi gan-based chain at the apex of the pizza industry, Doyle spent a few years with the giant Carlyle private-equity firm but didn’t engage in any major gambits there. Now with RBI, Doyle says, he’s drilling into “some big opportunities to create value here.” Doyle notes that as an investor, “My incentives are perfectly aligned with those of the franchisees. The only way this will work in the medium to long term is if they’re thriving.” His new company is helping Doyle out by pairing him with Josh Kobza, recently appointed CEO of RBI, who over 11 years already has served as chief operating officer, chief financial offi cer, and chief technology officer for the Toronto-based operator and owner of Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs. Before Doyle’s arrival, Burger King already launched an ini tiative known internally as “Reclaim the Flame:” a $400-million strategic-turnaround effort that includes substantial advertising and digital investments, restaurant remodelings, operational overhauls, and financial incentives for franchisees that success fully leverage what the parent company is doing for the brand. “Their plans already seem to be hitting the mark in customer perceptions: technology, the store, quality—basically what Dom ino’s playbook was,” says Rich Shank, senior principal and vice president of innovation for Technomic, a restaurant-consulting

firm in Chicago. But huge obstacles loom, some of which are different than what Doyle faced when he became CEO of a woebegotten Dom ino’s in 2010. Franchisee health is a main thrust of Doyle’s plan, similar to the challenge he faced at Domino’s, but on a short term basis it’s a strong concern for Burger King. The chain remains behind the leaders in important aspects of ordering and operations technology, and Burger King’s new manage ment doesn’t yet have the bandwidth to overhaul some of the other fundamentals of today’s quick-service business, includ ing breakfast and coffee. Finally, there’s still Wendy’s. The brand isn’t sitting still for any new broadsides from RBI. The Dublin, Ohio-based giant is moving forward with its own revamp, which includes target ing systemwide sales growth in the mid-single-digit percentages through 2025 as it embarks on a restructuring plan to stream line costs and to improve financial returns for well-performing franchisees. That plan was announced at the same time Wen dy’s largest shareholder, Trian Fund Management, said it was putting on hold its exploration of “strategic alternatives” for Wendy’s, such as a possible sale. “I am confident that Wendy’s best days are yet to come,” Wendy’s CEO Todd Penegor told investors. Nevertheless, Doyle is sanguine about the future of Burger

BURGER KING IS AT THE START OF A MULTI-YEAR COMEBACK JOURNEY.

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MAY 2023 | QSR | www.qsrmagazine.com