BACKGROUND

Keith Kramer and his wife's uncle Matthew Burns lived in Jacksonville, Florida in 1953, and were
looking for a restaurant idea. They built a stove called the Insta-Broiler, and they called their stores
"Insta-Burger King." The idea was picked up by a pair of Cornell University classmates, James
McLamore and David Edgerton. McLamore had visited the hamburger stand that was operated by
the McDonald brothers that launched the McDonald's empire, and he and Edgerton bought an Insta-
Burger King franchise in Miami in 1954.

The growth of the Miami metropolitan area made it an excellent location for starting a new chain,
but an adjustment had to be made to the Insta-Broiler idea. McLamore and Edgerton came up with a
gas grill that they called a "flame broiler," and it eliminated the problems of the Insta-broiler. In
1959, their operation had grown, and the Kramer-Burns operation had run into such trouble, that
McLamore and Edgerton could buy Kramer and Burns out. By 1961, the rechristened Burger King and
its signature burger the Whopper had begun to spread across the United States.

American fast-food chain Burger King, which crossed the 100-restaurant mark in India this month, is
looking to add 30-35 additional outlets in the country this year.

while it had been profitable at the restaurant-level since it set foot in India in 2014, this year it had
also achieved profitability at the company-level.Rajeev Varman, CEO, Burger King India, said: “India
is one of the fastest-growing markets for Burger King. “We are extremely positive and bullish about
the potential of the Indian QSR (quick service restaurant) industry for the next three-five years. We
should probably end this year with 130-135 restaurants.” The company, one of the late entrants to
the Indian QSR space, is present in 28 cities right now. Talking about future growth plans, Burger
King will continue to focus on opening 35-45 outlets a year and sustain this pace of growth.

CHALLENGES

Problems Lead to a Sale: 1999 and Beyond

Burger King's success however, proved to be short-lived. In 1999, the company was forced to recall a
promotional toy, the Pokemon ball, after it was discovered to be potentially dangerous for children. A
class-action suit followed, claiming the company acted in a negligent fashion when it distributed the
toy in its kids' meals. The firm's relationship with its franchisees was also deteriorating, marked by a
highly publicized lawsuit with franchisee La Van Hawkins. The Detroit-based entrepreneur claimed
Burger King failed to help him develop and purchase restaurants as promised. The firm counter-sued
claiming that Hawkins owed the company $16 million. Civil rights activist Al Sharpton threatened to
boycott Burger King as a result. To top it off, sales were falling, and the company experienced yet
another change in management. Malamatinas left the firm in 2000, and Colin Storm was named
interim CEO.

By this time, Burger King's parent company had announced plans to exit the fast food industry. Many
franchisees were experiencing financial difficulties--including bankruptcy--and had long since
complained that Diageo had neglected Burger King in favor of its premium liquor business. These
franchisees adopted an internal program entitled "Project Champion" aimed at forcing a sale of Burger
King. They approached J.P. Morgan Chase & Co. to orchestrate the deal, and, eventually, Diageo
agreed to sell Burger King. Texas Pacific Group along with Bain Capital and Goldman Sachs Capital
Partners purchased the fast food chain for $1.5 billion in late 2002.

According to a 2003 Feedstuffs article, Burger King's franchisee association claimed that the new
ownership marked "the first day of a new era" for Burger King. CEO John Dasburg--elected in 2001--
also felt the acquisition had significant benefits. In the aforementioned article Dasburg remarked that
it would "better position Burger King as a healthy, independent company for the first time in more
than 30 years."

While company management appeared optimistic about its future, Burger King remained embroiled in
intense competition. The firm continued to launch new advertising campaigns and in 2002 introduced
the BK Veggie, the first fast food veggie burger to be offered in the United States. Also in 2002,
Burger King revamped the BK Broiler, making a new product they called the Chicken Whopper. The
firm also moved into its new world headquarters in Miami, dedicating the building to founders
Edgerton and McLamore. Management focused on capturing a larger portion of the fast food market.
However, only time would tell if Burger King's new independence would help realize its goals.