In this week’s blog, I will look at two American icons for fast food. When I was younger, the competition was between these two giants, but in today’s environment, only one has emerged as the clear winner.
Because I’m a geek for business strategy, marketing, and food, I will look at these two companies’ Mission and Vision Statements, along with simple business acumen to determine why McDonald’s has the upper hand. Again this is just a quick look because there have been books written about this subject, and you can dive into the “special sauce” if you like. BTW, let me recommend the special sauce because it’s excellent.
Mission Statement
I was curious to discover how the companies have changed over the years just to see their business mindset. It’s always good to know where you’ve been and compare it to where you are now. So why 2017? Good question and the simple answer is because I had a textbook from 2017 with both companies’ statements. Nice and easy, I love it when a plan comes together.
Back in 2017, the Mission Statement was as follows:
“McDonald’s brand mission is to be our customers’ favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which centers on exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers’ experience.”
So, what is the statement today? “to be our customers’ favorite place and way to eat and drink.” Nothing fancy, just straight and to the point. This statement is easy to remember and lets the customer know what to expect.
Here is Burger King’s mission statement from 2017. “offer reasonably priced quality food, served quickly, in attractive, clean surroundings.” This mission statement indicates the kind of outputs expected from the company. Good food, good price, quick and in a nice environment to eat in.
Today Burger King’s mission statement is “offer reasonably priced quality food, served quickly, in attractive, clean surroundings.” Now that sounds awfully familiar. I understand sticking with a winning idea, but in an industry like fast food, recalibrating, and reacting to the customer’s ever-changing taste is critical. A mission statement puts your identity into focus so everyone can see what you’re all about as a company. Perhaps Burger King might want to update a little.
I like McDonald’s Mission Statement simply because they updated and rephrased the idea of being, McDonald’s. Sure at its core, a hamburger is still the same as the old hamburger, but to the customer, it’s perceived that they are the “Bee’s Knees,” which they are.
Burger King’s Mission Statement focuses on what kind of environment and product a customer will find when they visit a franchise. Quality food in a clean environment is at the heart of the statement, and there is a feeling that there should be more. Burger King is loosing simply because they are staying status quo and not presenting new ideas or thoughts. Again, a flame-broiled hamburger is still a flame-broiled hamburger, but the perception is, Burger King refuses to update ideas to their customers, and that is killing them.
Vision Statement
McDonald’s vision statement in 2017. “Our overall vision is for McDonald’s to become a modern, progressive burger company delivering a contemporary customer experience. Modern is about getting the brand to where we need to be today and progressive is about doing what it takes to be the McDonald’s our customers will expect tomorrow. To realize this commitment, we are focused on delivering great-tasting, high-quality food to our customers and providing a world-class experience that makes them feel welcome and valued.” When I first read McDonald’s Vision Statement, I had questions on what was a “progressive burger company” and what constitutes a “contemporary customer experience.” The statement then proceeds to define the terms used by McDonald’s. Words like progressive and contemporary are buzz words used by many companies to dazzle people in 2017. It gives the feeling that McDonald’s is thinking more about the words and not the vision. The vision statement almost lacks vision on where the company is heading. Awfully long-winded and what the heck are they rambling on about? In 2017 this was acceptable. Today, with the five-second attention span, people will stop reading after the word McDonald’s.
McDonald’s Vision Statement now? “to move with velocity to drive profitable growth and become an even better McDonald’s serving more customers delicious food each day around the world.” I like this only because it looks like McDonald’s is aiming their vision toward the future, and it’s also short.
Burger King’s Vision Statement is “to be the most profitable QSR business, through a strong franchise system and great people, serving the best burgers in the world.” This vision statement directs Burger King to achieve leadership in the global quick-service restaurant (QSR) industry or fast food industry. The vision statement has the following points regarding Burger King’s business, the most profitable QSR business, Franchise system, Great people, and best burgers in the world. It’s short but the QSR thing is sort of weird. Spell it out for me please. Oh wait, this will make the statement longer. Burger King, your good to go with the QSR thing. I retract my objection.
Burger King’s Vision statement today. “to be the most profitable QSR business, through a strong franchise system and great people, serving the best burgers in the world.” Burger King, YOU ARE KILLING ME.
Burger Kings Vision Statement is clear and directs where the company is heading or wants to go in 2017 and today. Nothing has changed, but the overall message is good, and as a customer, you know the vision despite Burger King using their own language of “QSR.” Burger King also uses its pillars of foundation in both statements. It’s good to have, but it seems it doesn’t fit in with the aim of the statements overall.
I’m now beginning to see the significant differences between the companies simply because of these statements. McDonald’s try’s new things, and Burger King is still holding on to the past.
McDonald’s innovations in recent years. Stroopwafel McFlurry, Grand McExtreme Bacon Burger, Tomato Mozzarella Chicken Sandwich, and Cheesy Bacon Fries. All of these were introduced in just the last year. Sure, most of them probably died fast, but innovative ideas are there. Burger King has different size burgers now, along with King Club, Ham & Cheese, Mustard Whopper, and Rodeo Burger. A burger by any other name is still a burger.
Leadership Strategy
Overall, when simply looking at the numbers and seeing how busy McDonalds is compared to Burger King, the battle of the burgers isn’t much of a fight, and McD’s has won hands down, but why?
McDonald’s leadership and the strategy they are using is far superior to that of Burger King. Many have analyzed this question, and it seems that three main reasons keep appearing to explain this phenomenon.
Branding for McDonald’s is better overall. When someone says McDonald’s, what comes to mind? Golden arches, Ronald McDonald, how about the Big Mac? Mickey D’s is loaded with brand images that any American will instantly recognize. What does Burger King Have? A scary-looking person dressed up in a King costume. There is really no contest on the branding image.
McDonald’s innovates better and is always first in the business. Remember when the McGriddle came out? Everyone first hated this pancake sandwich until they tried them. Now McGriddles are among the top sellers for breakfast. Over the past ten years, McDonald’s has introduced dozens of innovations with its menu. Not all are successful, such as the McLean, but the company is focused better than anyone in the fast-food arena on constant innovation.
Then you also have the product differentiation, strategic vision, and the marketing towards kids. The Happy Meal seemed cheesy at first (pardon the pun) but this keeps the kids coming back and introduces McDonald’s to a new young customer base and then there are the toys.
All I can say is that those toys should be outlawed. They just never stop. Toys from a movie, toys from a book series, stupid toys that make no sense at all, toys, toys, toys. Sorry about that, I sort of lost it but I’m better now, thanks for asking. Now where’s my Happy Meal?
Lastly, McDonald’s has Hamburger University, unlike Burger King. This might sound like a joke, but Hamburger University has an average of 5,000 yearly graduates for new owners and employees wanting to grasp the McDonalds concept. Also, every year all owners are invited back to go over what works for them and what didn’t in their stores across America. When you get thousands of minds together to discuss problems and solutions, innovation isn’t just a fuzzy keyword but a serious reality. This is where McDonald’s dominates the competition, and the outcome is evident. McDonald’s is simply the king of burgers.
Mike Drop….Bam