Burger King plans to spend $400 million over two years to advertise and renovate its US restaurants.

Among its plans, Burger King is looking to spend $200 million to finance renovations to approximately 800 locations – Photo: Justin Sullivan/Getty Images

During the next two years, burger giant Burger King will spend $400 million on advertising and renovating its restaurants to combat lagging sales recorded in the United States.

The company unveiled its restructuring plan this week at its annual franchisee convention, saying that it expects investments to bear fruit in 2025.

His decision comes after, during the second trimester, Burger King reported flat growth in sales from its US stores., behind rivals McDonald’s and Wendy’s. These results have been similar to those reported during the last year.

What are the announced changes?

Among its plans, Burger King seeks to spend $200 million to fund renovations to approximately 800 locations. Another $50 million will upgrade 3,000 restaurants with technology, kitchen equipment, and building upgrades.

The company has more than 7,000 Burger King locations in the US.

Historically, remodeled restaurants see an average sales increase of 12% in their first year and outgrow older places over time, according to Burger King.

Burger King will also increase the budget of its US advertising fund by 30% by investing $120 million over the next two years. Those investments will begin in the fourth quarter.

Also, an additional $30 million will be spent through 2024 on improving its mobile app surpassing the digital fees that franchisees pay the company for the technology.

Burger King’s menu will also improve: The company said it had created a multi-year plan to improve it, including developing new Whopper flavors betting on its Royal Chicken Crispy sandwich, and investing in more employee training.

According to Burger King, the strategy has received support from franchisees who operate 93% of its restaurants in the US. Operators will contribute their own money and the company for remodeling and advertising.

In addition to the money they make from Burger King, franchisees who make improvements to their restaurants are expected to earn incentives.

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In the past, Burger King operators who remodeled their restaurants received discounts on advertising fees and royalties for up to seven years.

The new program will give cash to franchisees once the project is complete and will allow them to choose how much discount they get on the royalties they pay to the company.