Burger King’s Operations Management, 10 Decisions, Productivity

Burger King 10 strategic decisions areas of operations management and productivity case study and analysis
Inside a Burger King restaurant in Seoul, South Korea. The 10 strategic decisions of operations management are successfully applied at Burger King to optimize productivity in all business areas. (Photo: Public Domain)

Burger King’s operations management (OM) involves strategies to increase the company’s status toward the top position in the global quick-service restaurant industry. As one of the major players in the industry, Burger King must address the 10 strategic decision areas of operations management. These 10 areas are the most basic considerations in strategic formulation for streamlined and unified organizational development. Burger King has appropriate strategies and tactics for the 10 strategic decisions of operations management. These strategies and tactics are based on Burger King’s business nature and market conditions.

The 10 strategic decisions of operations management (OM) are carefully included in Burger King’s strategies for high productivity and performance. These strategies are a result of the restaurant company’s organizational development through the years. The resulting high productivity enhances success rates in achieving the goals linked to Burger King’s mission statement and vision statement, such as the aims for customer satisfaction through food quality. In addition, effective operations management means that the business develops optimal capabilities for competing against other food-service companies, such as Wendy’s, McDonald’s, and Starbucks.

Burger King’s Operations Management, 10 Decision Areas

1. Design of Goods and Services. Burger King’s focus in this strategic decision area of operations management is to differentiate its products from those of competitors. For example, the company offers flame-grilled burgers, which are relatively unique in the market. This approach to operations management supports Burger King’s generic strategy and intensive growth strategies.

2. Quality Management. This strategic decision area involves satisfying the quality expectations of target customers. To address this concern, Burger King’s operations management maintains product tests. The company also collects customer feedback through the My BK Experience website. Quality management helps differentiate the company from other restaurant businesses. Thus, effectiveness in this area of operations management strengthens the brand, which is one of the competitive advantages identified in the SWOT analysis of Burger King.

3. Process and Capacity Design. Burger King’s objective in this strategic decision area is to implement operations management programs to maximize capacity utilization and productivity. For example, the company continuously monitors demand and sales at its restaurants worldwide. Burger King adjusts its production facilities’ operations accordingly.

4. Location Strategy. The primary operations management concern regarding location is to strategically optimize market reach. Burger King’s strategy to address this decision area involves market penetration, with focus on town centers and urban centers. Restaurant location is used as a criterion for evaluating franchise proposals.

5. Layout Design and Strategy. Burger King’s operations management emphasizes efficiency. For example, the company’s kitchen design is as compact as possible to save space while enabling worker productivity. Thus, Burger King addresses this strategic decision area through efficient layouts and workflows.

6. Job Design and Human Resources. Sufficient and effective human resources are the objective in this strategic decision area of operations management. Burger King satisfies this concern through standardized training programs. The firm has field teams and Restaurant Support Centers for this purpose.

7. Supply Chain Management. Burger King has a global supply chain. In this strategic decision area, the objective is to ensure the adequacy of supply at all times. Burger King’s operations management strategy involves consolidating all supply chain activities. Burger King’s materials and ingredients are supplied through this consolidated supply chain management.

8. Inventory Management. This strategic decision area highlights the need for operations management practices that maximize capacity and satisfaction and minimize inventory management costs. Burger King addresses this need through localized inventory practices based on restaurant performance, as well as global inventory management for moving products to various restaurant locations.

9. Scheduling. Burger King’s approach in this strategic decision area is based on industry standards. For example, the company’s operations management uses automated scheduling for human resources. In addition, manual scheduling is used, especially at individual Burger King restaurants.

10. Maintenance. Optimal operating conditions are the main concern in this strategic decision area of operations management. For this purpose, Burger King also uses industry standards. The company has dedicated maintenance teams for corporate operations, and Restaurant Support Centers for franchisees, as well as third party service providers in various localities.

Productivity at Burger King

Burger King’s operations management measures productivity from different angles, such as those of the franchisees, corporate headquarters, and regional facilities. The goal is to maximize productivity while minimizing corresponding costs. The following are some notable productivity criteria at Burger King:

  1. Revenues per restaurant (restaurant productivity)
  2. Revenues per region (productivity in the regional market)
  3. Meals served (general productivity for process evaluation)
  4. Documents processed per year (Burger King’s corporate productivity)