BK Ups Its Game

Client Burger King struggles against McDonald's even on a good day.

It seems no matter what the Miami-based food giant does, it pales in comparison to the Golden Arches. Much of that is just the economies of scale: McDonald's is so big, even when it belches, the winds of change blow hot. The media has tended to favor the Oakbrook, IL-based behemoth while openly denigrating the efforts and prospects of chains like BK, Wendy's/Arby's and others.

Recently the brand has taken two pages from Mickey D's playbook. As reported here in this blog, Burger King has ditched its loser coffee, BK JOE (considered "sludge" by those in the coffee trade), in favor of Seattle's Best (well, second-best, but better than BK JOE). Now, its its latest move is to go after McDonald's Angus Third Pounder premium burger with the new Steakhouse XT. Boasting 7 ounces of beef, the new burger is 30% larger than an Angus Third Pounder.

The Steakhouse XT will debut at the promotional price of $3.99 alongside a co-branded A.1. Steakhouse XT and a Smoky Cheddar Steakhouse XT at $4.49. Whoppers usually go for $3.19. The Steakhouse XT and A1 Steakhouse XT are joining the core menu, while the Smoky Cheddar is an LTO (limited time offering).

The new line of premium burgers offers a higher margin than Burger King's regular lineup, which has seen controversial price-cutting strategies that prompted a lawsuit from franchisees. The change is only possible because of a new line of batch broilers with multiple cooking tracks that allow it to make both Whoppers and premium Steakhouse XT burgers. The company also says it is testing other broiled products, including Fire-Grilled Ribs, stuffed burgers, breakfast items, snacks and even flame-grilled desserts.

Stay tuned for more in the burger wars.

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