McDonald's vs. Burger King - FourWeekMBA (2024)

Customer SegmentsFast-food consumersFast-food consumersBoth target fast-food consumers looking for quick and affordable meals.While both serve fast-food consumers, McDonald’s has a broader customer base and international presence. Burger King focuses on specific menu offerings and marketing strategies.Broad Customer Base (McDonald’s), Focus on Customization (Burger King).Value PropositionConvenient dining, iconic menu itemsFlame-grilled taste, customizable itemsBoth offer convenient dining options and iconic menu items. McDonald’s emphasizes its globally recognized menu. Burger King highlights the flame-grilled taste and customization options.McDonald’s menu is known for its consistency worldwide, while Burger King focuses on the flame-grilled taste and “have it your way” customization.Iconic Menu (McDonald’s), Customization (Burger King).ChannelsRestaurants, drive-thrus, delivery servicesRestaurants, drive-thrus, delivery servicesBoth use restaurants, drive-thrus, and delivery services to serve customers.McDonald’s has a larger global restaurant network, while Burger King has fewer locations but emphasizes convenience and speed of service.Extensive Restaurant Network (McDonald’s), Convenience Focus (Burger King).Customer RelationshipsQuick service, consistencyQuick service, customizationBoth prioritize quick service to meet customer demands. McDonald’s emphasizes consistency in menu items and service. Burger King focuses on customization, allowing customers to tailor their orders.McDonald’s aims for a consistent dining experience globally. Burger King emphasizes the “have it your way” approach, giving customers more control over their orders.Consistency (McDonald’s), Customization (Burger King).Key ActivitiesMenu development, franchise managementMenu development, franchise managementBoth engage in menu development and franchise management.McDonald’s has a more extensive and standardized menu. Burger King focuses on menu items like flame-grilled burgers and unique promotional offerings.Menu Specialization (Burger King), Extensive Menu Options (McDonald’s).Key ResourcesBrand, franchise network, supply chainBrand, franchise network, supply chainBoth rely on their brand recognition, franchise networks, and supply chains to operate efficiently.McDonald’s has a larger global presence and a well-established brand. Burger King focuses on its flame-grilled cooking process and unique menu items.Global Brand Recognition (McDonald’s), Flame-Grilled Process (Burger King).Key PartnershipsFranchisees, suppliers, promotional partnersFranchisees, suppliers, promotional partnersBoth collaborate with franchisees, suppliers, and promotional partners to support their operations and marketing efforts.McDonald’s has a larger network of franchisees and global suppliers. Burger King has partnerships tied to its unique menu items and promotional campaigns.Extensive Franchise Network (McDonald’s), Unique Menu Partnerships (Burger King).Revenue StreamsProduct sales, franchise fees, royaltiesProduct sales, franchise fees, royaltiesBoth generate revenue through product sales, franchise fees, and royalties from franchisees.McDonald’s has a larger revenue base due to its extensive restaurant network. Burger King’s revenue is derived from a smaller number of restaurants but focuses on higher-margin menu offerings.Diverse Revenue Streams (McDonald’s), Focus on Margin (Burger King).Cost StructureFood and labor costs, marketing expensesFood and labor costs, marketing expensesBoth face costs related to food and labor, as well as marketing expenses.McDonald’s has a broader international presence, resulting in higher overall operating costs. Burger King focuses on cost control while offering unique menu items.Cost Control (Burger King), Global Presence (McDonald’s).