Operations

Burger King to invest $300M for restaurant updates

Photo: Burger King

April 30, 2024

Burger King is investing $300 million to modernize its U.S. restaurants, aiming for 85% to 90% of locations to have a new look by 2028, according to a press release.

This follows an earlier initiative, "Reclaim the Flame," which included digital marketing investments and a profitability-based agreement for franchisees to increase advertising spending. The company said the initial plan led to record profits for U.S. franchisees in 2023.

The new investment funds "Royal Reset 2.0," a program offering cash incentives to franchisees for renovations. This builds on the success of the original "Royal Reset" program, which saw 100 restaurants remodeled with a reported positive impact on sales.

"We are committed to giving our guests the very best experience in all our restaurants and that includes a modern, exciting restaurant image and digital experience that exceeds their expectations," Tom Curtis, president of Burger King North America, said in the release. "We are working in close partnership with our Franchisees to transform our restaurant footprint across the country and reclaim our flame as a leader in the QSR industry."

Burger King also acquired its largest U.S. franchisee, Carrols Restaurant Group, in January. The company plans to remodel about 600 of those restaurants and re-franchise most of the Carrols portfolio to smaller operators within the next decade.

The new restaurant design, "Sizzle," emphasizes digital ordering, pickup, and drive-thru experiences. Franchisees have until October 31 of this year to decide on participating in the "Royal Reset 2.0" program.

Burger King operates more than 19,000 locations in more than 100 countries and U.S. territories.