Burger King isn’t yet ready to take away your self-service fountain machine, unlike McDonald’s (MCD).
“We will go where the consumer guides us. Right now, our consumers are telling us that they want to come into a restaurant … they want to mix their own [drinks] … And when they want to refill, they can have a refill,” Burger King US and Canada president Tom Curtis said on Yahoo Finance’s Opening Bid (video above).
Many Burger King locations have a Coca-Cola (KO) Freestyle machine. The red touchscreen machine allows a diner to concoct almost an endless array of flavored sodas and non-carbonated beverages.
Meanwhile, McDonald’s is officially ending a decades-old fast food tradition by phasing out its self-service fountain machines in US dining rooms. It’s targeting a completion date of 2032.
The Golden Arches first announced the strategic shift in September 2023, citing a desire to create a “consistent experience” for customers and staff across all ordering platforms, including delivery, kiosks, and the drive-through, which now account for about 40% of domestic sales.
Beyond streamlining operations, the move allows McDonald’s to better control beverage portions, improve restaurant cleanliness, and eliminate the high maintenance and repair costs associated with customer-facing machines.
McDonald’s CFO Ian Borden told Yahoo Finance it “probably” will continue to offer free refills.
The consumer response to yanking away the machines has yet to show up in McDonald’s results.
BK already has one big W on the scorecard this year against Mickey D’s.
Restaurant Brands (QSR) said this week its Burger King US chain delivered a 5.8% same-store sales increase in the first quarter. The result outperformed the quick-service restaurant industry by more than five points, Bernstein analyst Danilo Gargiulo said.
It also bested McDonald’s — its US business posted a same-store sales increase of 3.9% in the first quarter on Thursday.
“It’s a zero-sum game. It’s not a growing category,” Curtis said. “But we’ve proven to ourselves that if you do offer a better experience and a better core product, you can absolutely grow.”
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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