
McWhoNow? I’ll take the 40 mil.
Burger King has been on quite the tear in Japan recently. Their explosive post-pandemic expansion saw them grow from 77 locations to 352, with a target of 600 by 2028. These ambitions caught the attention of Goldman Sachs, who purchased the Japanese chain for 78.5 billion yen (US$493M), and provided them with even more financial backing to grow rapidly.
Burger King is certainly holding up their end of the deal by launching quite possibly the most aggressive expansion campaign not only in Japan, but anywhere. They have publicly announced that they will offer up to 40 million yen ($250,000) cash to any franchise owner of a rival chain, such as McDonald’s or Mos Burger, that has been in business for at least three years and is willing to convert their restaurants to Burger Kings.
▼ Perks include a faster return on investment and charbroiled, 100-percent beef patties.
In addition, Burger King will cover half of the initial investment to make the switch and says that their average location pulls in about 17 million yen a month. This makes a very clear statement to franchise owners that if their income is south of that, then it’s probably time for a change. The change can take place anytime before December 2028, giving franchisees a little wiggle room to get out of their current contract without having to pay a penalty fee.
If Burger King gets a good response, this could be a key step in their projected growth since poaching other restaurants significantly cuts down on construction time, and every restaurant converted amounts to one less competitor out there.
Of course, this kind of tactic in general is not unheard of, but doing it on such a large and open scale is rare to say the least. And I’m feeling 100-percent sure no one has ever made a commercial with a jingle about it in the history of the fast food industry.
▼ The song explains that if you change your car or favorite idol, you don’t get anything for it. But if you change your restaurant, you can get 40 million yen.
If this campaign is successful, Burger King stands to win big, but that is a considerable-sized “if” in Japan. Even in the U.S., these kinds of conversion deals are usually done behind the scenes, possibly through direct connections made at industry conventions rather than flashy campaigns on social media. It’s probably fair to assume Japan is even more conservative about these matters, if the various corporate apologies for 10-yen price increases or being 20 seconds early are anything to go by.
You might be thinking franchisees are getting all the sweet deals from Burger King, but there are also chances for everyday folks like you and me to cash in as well. The chain offers periodic location scouting campaigns where anyone can submit places they think would work well as a Burger King. Any suggestion that results in Burger King leasing a property will win 300,000 yen ($1,900) cash, and just making a suggestion will earn you a coupon for a discount on a Whopper.
▼ They have a commercial for this too, but no jingle.
This campaign is currently not going on, but they do seem to bring it back every few months, so now would be a good time to start scouting your neighborhood to see where a Burger King might look nice. Meanwhile, if you’re a restaurant franchisee, you’ll have until 30 September to apply to make yourself a burger king, burger queen, or maybe even just a hungry jack.
Source: PR Times 1, 2
Images: PR Times
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