The fast food industry grabbed headlines this week as Burger King’s owners, Restaurant Brands International, made a significant acquisition. In an effort to turn around the fast food chain, they have been implementing a series of changes such as introducing modern ordering kiosks, updating kitchen equipment, and renovating stores. Their largest move to date has been the purchase of their biggest franchise operator, Carrols Restaurant Group Inc., in a deal worth $1 billion. Leticia Miranda’s coverage of the acquisition on Bloomberg provides more insight into the situation.
However, while these strategic moves may be seen as a solid business plan by some, the newly acquired franchise’s approach to customer service has raised eyebrows. According to Deborah Derby, the CEO of Carrols, every worker must say “you rule” to every customer and offer each one a cardboard crown. Such a move may seem contrived or awkward to customers, leading to a sense of discomfort rather than the intended sense of royalty. This has prompted calls for executives to address this issue swiftly and prevent damaging the brand’s reputation further.
The acquisition of Carrols has been significant for Burger King. Carrols currently owns roughly 1,000 Burger King restaurants across the United States, and the deal should aid in rejuvenating the fast-food giant’s standing within the rapidly changing consumption landscape. Yet, while this tactical merger brings with it many clear benefits, the accompanying challenges and customer service quirks must also be addressed.
In the high-stakes fast food industry, every decision can drastically influence a brand’s standing with consumers. As Burger King continues forward with its new owner, Restaurant Brands International, only time will tell if their bold business maneuvers will pay off and how their somewhat unconventional customer service model will resonate with customers.