Burger King attacks McD with french-fry launch

Nation's Restaurant News, Dec 22, 1997 by Mark Hamstra

MIAMI -- In another direct attack on its golden-arched rival, Burger King is introducing its new french fries with a massive ad campaign that aims to strip McDonald's of its long-held title as purveyor of the preferred potato.

"We've never been able to call our fries the best," said Paul Clayton, president of Burger King-North America. "Therefore, we felt we needed to make a change."

Burger King rolled out the new fries, which feature a clear coating reportedly made from a potato-based starch, to all of its 7,400 U.S. locations in early December and kicked off national advertising Dec. 15. The fries were in development for more than two years and already had been available in several markets.

The fries are designed to retain heat and crispiness longer, the company said, so that they do not become soggy when customers take them off the premises to eat. About 60 percent of Burger, King's business is drive-thru, and another 15 percent is takeout, the company said.

The $70 million-plus ad campaign, featuring the Mr. Potato Head character as "spokes-spud," marks the largest new-product launch in the company's history. According to Burger King's senior vice president of marketing James Watkins, spending will more than double the $35 million invested to support the rollout of the Big King, the sandwich Burger King introduced in September to steal Big Mac lovers away from McDonald's.

Ads for the new fries feature the tag line "The taste that beat McDonald's fries," a reference to a taste test Burger King sponsored in which 57 percent of consumers in 18 cities preferred the new Burger King fries to McDonald's fries. Another 35 percent said they preferred McDonald's fries, according to the double-blind study. while 8 percent had no preference.

As part of the promotion, a mobile fry truck will conduct a 45-city tour to give away free fries. Burger King also will have a "Free FryDay" on Jan. 2 when Burger King restaurants nationwide are slated to give away one small order of fries free to every patron.

Burger King also is integrating its fry launch with a children's meal promotion in which five Mr. Potato Head toys will be given away in kids' meals from Jan. 5 to Feb. 8. It is the first time Burger King has integrated a new-product launch with its kids' meals, the company said. Ethnic spots include those targeted to African-Americans and Hispanics, including the first original Spanish-language "claymation" commercials ever produced, according to the chain.

Burger King had long been touting its flame-broiling cooking method as producing superior flavor in its burgers, but the chain acknowledged that its often-limp potatoes had drooped in the shadow of McDonald's fabled french fries.

"The french fry is the final piece," said Lawrence Jaro, president and chief executive of Schaumburg, Ill.-based AmeriKing, the second-largest franchisee in the chain with more than 200 units. "Most peoples' perception was that Burger King had an inferior product."

Although the new fries are slightly more expensive for operators to purchase, most franchisees are not expected to increase their menu prices.

"It's pretty competitive, pricewise, out in the marketplace," Jaro said. "We're hoping we can see some incremental sales increases [to offset the added food costs].

"One of the things Burger King found," he said, "was that when the perception of the fry improves, it improves the customer's overall perception of the sandwich." Jaro noted that the new fries require some minor adjustments in preparation -- "you have to shake them a little more so they don't stick together," he said.

Mike DeRosa, president of the National Franchisee Association, representing most of the franchisees in North America said franchisees were willing to absorb the increased cost of goods "as an investment." Franchisees operate more than 90 percent of the chain.

A McDonald's spokesman said the company had no specific counterattack planned and shrugged off the direct attack on its fried-potato franchise.

"When you are in second place, and you are 20 points behind, you've got to do something," said Walt Riker, a McDonald's spokesman.

Wendy's, the third-largest burger chain with more than 5,000 restaurants, said it had no plans to change its fries.

"We think we have a pretty good french fry, and we're going to stay with it," said Denny Lynch, a company spokesman.

Burger King's promotion follows a year of flat same-store sales overall for the chain which is owned by London-based Grand Metropolitan PLC. Grand Met last week was to have finalized its merger with Guinness PLC, forming a new spirits-and-foods concern, Diageo.

In the fiscal year ended Sept. 30, Grand Met reported that Burger King's operating profit was 170 million British pounds, or about $280 million. Revenues were 864 million pounds, or about $1.43 billion. That compares with fiscal 1996 operating profits of 167 million pounds, or $275.6 million, on revenues of 859 million pounds, or $1.42 billion.