Sunday, December 1, 2019

Burger Story

There's a business story that popped up this morning on Germany's N-TV (commercial news network), and it revolves around Burger King.

Burger King has been around in Germany since the mid-1970s.  I can remember eating at a BK during my first period (1978-1980) of assignment here. 

What Germans will say about BK....at least from the last decade, is that it seemed to be a 'cheap' fast-food spot....meaning the buildings were aged, and that coupons were a major part of the weekly sales.  At some point about five years ago, here in the Wiesbaden region....I was getting a 20-coupon sheet almost monthly....giving me ten to twenty percent off on various lunch options.  Maybe it did draw people to visit more often, but it was also dissolving profits for these local BK operations. 

So N-TV brought up the new strategy....that BK wants to start up a premium strategy (similar in nature to what McDonalds is doing).  What they have discovered is that people are generally willing to pay more....for a better product.  Dissolving away the coupon business?  One gets that idea.

I bring all of this up because there is a burger-war of sorts going on, and it no longer involves just BK and McDonalds.  There are various burger operations now existing in metropolitan German regions, and they are what you'd call premium burger outlets.  It's a bigger, and better burger....that will cost you (with the fries and soda included) in the 12-Euro range (figure around $14 American).

Just here in the Frankfurt area, you have Holy Moly Burger (Sulzbach), Burger For U (westend of Frankfurt), and Das Burger (existing in Wiesbaden now).  There's probably another twenty-odd burger operations between Mainz, Frankfurt, and Wiesbaden. They are all offering heavy competition against BK.


No comments: