Burger King eyes P1-B sales mark

The Ayala-owned fastfood chain Burger King expects to break into the P1-billion sales mark this year with the addition of 15 more outlets, including the first stores outside Metro Manila.

Raul Nazareno, president of the holding company PhilKing Restaurants and Development Corp., said from the present network of 24 free-standing stores and a satellite branch at the Quad Complex in Glorietta, the Burger King chain will be expanded to areas such as Los Baños in Laguna, Antipolo in Rizal, Morayta, Marcos Highway, Ortigas Ave. Ext. and Isetann Mall in Recto.

"This year, we will definitely hit a billion in sales," Nazareno said noting that the increase in outlets would beef up their sales by some 42 percent from the approximately P700-million sales revenue last year.

He estimated that it would cost the company about P350 million to put up the additional outlets. The first stores will open by June this year, some of which would be in a tie-up with strategic partners providing the location for the Burger King restaurants.

Nazareno said while all existing and future stores are company-owned, PhilKing is not closing its doors for possible franchisees although he said this expansion approach would take some time to implement.

"We need to build up a critical mass first before we go into franchising. We are still experiencing birth pains so there's still a lot of aspects to improve on," he said.

He said it would take about 100 to 120 outlets to build up the Burger King chain into a more competitive level and eventually take a large chunk of the fastfood market presently dominated by Jollibee and McDonalds.

The first Philippine outlet of the US-based hamburger chain opened at Robinson's Galleria in December 1997. Since then, it has mushroomed in the top malls (Robinson's Ermita and Imus, SM in Fairview, Bacoor, Las Piñas, North Avenue, Shangri-La Plaza, Glorietta and Greenbelt) and in strategic points like UN Avenue, Roxas Boulevard, E. Rodriguez Ave., Sucat, Las Piñas, Libis, Katipunan, Del Monte Ave., Masangkay and Dapitan Sts.

The Miami-based Burger King Corp., a subsidiary of the leading branded consumer product firm Diageo Plc., operates more than 10,200 outlets in more than 50 countries and territories.

Famous for its flame-broiled burgers and service based on the have-it-your-way food customization, Burger King will soon be sporting a new look geared toward the younger market.

PhilKing, on the other hand, is a joint venture between the Ayala's Pure Foods Corp. and the US investment firm RY Ltd. Liability Co.