Burger King NZ was acquired by Anchorage from private shareholders in September 2009 following a previous attempted sales process that failed.
Burger King is a leading quick service restaurant (QSR) brand and is the second largest hamburger chain in the world and NZ. It is most recognised for its signature burger, the WHOPPER. Burger King NZ offers a range of authentic flame-grilled beef and quality chicken burgers and is known for having the best tasting and biggest burgers amongst its competitors.
The business owned and operated all but three of the Burger King restaurants in New Zealand with the remaining three restaurants franchised. The business also had a joint venture interest in a local meat processing operation supplying beef patties to the Burger King NZ network and export customers in South East Asia.
Anchorage viewed Burger King NZ as a classic turnaround. The investment rationale was based on doing the basics well by improving gross margin and restaurant profitability, leveraging the strong underlying brand and investing in the business.
The turnaround blueprint implemented included the following initiatives:
Organisation and culture: Appointed new Director of Operations; changes to restaurant management; implemented a new culture; improved training, development, incentives an safety processes
Brand: Consumer insight study; new advertising and marketing program; new menu boards
Cost management: Improved supply chain management; new gross margin improvement initiatives; systems and technology investment; continuous improvement program; established internal audit function
Operations: Improved labour scheduling; new drive thru capability, improved speed of service;
Product and menu: New products; revisiting pricing and bundle meals
Restaurant environment: Major investment refurbishment program; five new restaurants opened
The turnaround program resulted in a material change in the quality of the business. Underlying EBITDA almost doubled and a range of new growth options were developed.
The turnaround initiatives outlined above delivered meaningful improvements in earnings and margins and significantly improved the quality of the business.
Burger King NZ was successfully sold to The Blackstone Group in November 2011.