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Morning Briefing for pub, restaurant and food wervice operators

Thu 19th Feb 2015 - Burger King begins UK home delivery trial
Burger King begins UK home delivery trial: Burger King has revealed that is trialling a home delivery service in the UK. The company refranchised all UK sites in 2012 as part of a strategy to improve average site profitability by focusing on brand innovation. The delivery service is being trialled in Hornchurch, Gants Hill and Romford in Essex, Hayes in Middlesex, Northampton, Truro, Skegness and Hull. The eight restaurants will deliver within a two-mile radius. A new website, Burger King Delivers, has gone online, allowing customers to order food  for delivery straight to their door. The trial will take place for three months, with a view to a possible national roll-out later in the year. Customers can place their orders on the internet or by telephone between noon and 3pm and between 6pm and 10pm. Matthew Bresnahan, Burger King's marketing director, said: “We are extremely excited about this home delivery service.” The public reaction to the news has been largely positive, with fans of the brand taking to Twitter to express their pleasure. All of Burger King's current burgers, desserts, sides and combo meals are available, with new combo meal deals for multiple diners also on offer. Last week, Burger King UK belatedly filed accounts for 2013, the year after it refranchised its entire estate of around 520 sites. The company reported a loss of £3m, down from a loss of £4m the year before. It had income of £12.6m from property rental and service charges. Burger King had a vacant property provision of £2.7m relating to vacant property costs (£2.3m in 2012) and a store closure provision of £399,000. It has net current liabilities of £26m (2012: £22.5m) and is “dependent on the continued support provided by its parent company to enable it to continue trading as going concern”. The accounts state: “We refranchised all our company restaurants by 30 October 2012. Burger King believes that a franchise-dominated business model will increase profitability and cash flow since the capital required to expand the restaurant portfolio and re-image and maintain existing Burger King restaurants will principally be provided by its franchisees. Further, Burger King believes a shift away from significant restaurant ownership will permit [it] to focus on narrowing the average restaurant sale gap with peers, through menu innovation, franchisee operational support and brand development.”


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