McDonalds has watched itself loose market share to competitors like Burger King and hasn’t had a new product launch since Chicken McNuggets were introduced in 1983, “McDonalds’ has done the unthinkable: lost ground to its chief competitor. Over the past tow years it share of the US hamburger market has slipped slightly to 41.9%, while Burger King’s share has inched up a full point to 19.2%. Average store sales have been down for nine of the last ten quarters [causing franchisee panic…The latest insult: Burger King’s new sandwich cheekily dubbed the Big King, is selling out in stores one year after McDonalds blew $200 million to launch its most recent flop the Arch Deluxe. Shares are currently languishing around $47-roughly the same place they were two years ago,” (Branch 1).
The most disappointing thing for McDonalds executives has been that the company that once set the pace of American culture has, despite brisk international sales, seen its US sales figures flatline, “Not even a still booming international division, responsible for half of sales and 60% of profits can mask the troubles,” (Leonhardt 77). On the other hand, Burger King paled in comparison to McDonalds from the day it heated its first vat of deep-fryer oil. The management strategy over Burger Kings history has remained fairly consistent where product quality and simple pricing promotion are concerned. However, their lack of proactive management, less optimal store conditions (not modern, uncleanly, lack of uniform standards), and the fact that they owned much less of the real estate upon which their franchises sat than McDonald
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