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Report: Burger King to overhaul 12,000 locations worldwide

10/7/2009

New York City Burger King Corp. plans to update its restaurants to a hipper, more contemporary look, the Associated Press reported.

As part of a plan to be revealed Wednesday in Amsterdam, the chain will announce an ambitious program to redo 12,000 locations worldwide. The new interiors will be sleek and modern, with rotating red flame chandeliers, digital TV-screen menus and industrial-inspired corrugated metal and brick walls.

"I'd call it more contemporary, edgy, futuristic," chairman and CEO John Chidsey told The Associated Press. "It feels so much more like an upscale restaurant."

The new look is expected to cost franchisees, who operate 90% of Burger King's locations, between $300,000 to $600,000 per restaurant, the report said.

The company said the new design, which is referred to in-house as “20/20,” is already in place at about 60 locations around the world. Burger King expects about 75 more redesigned restaurants to be open by the end of next year.

Burger King franchise owners are contractually required to update their restaurants after a set period of time, and executives said the redesign will be the primary option for future upgrades. All new restaurants will be built using the plan, according to the Associated Press.

So far, remodeled restaurants have seen sales climb about 12% to 15% while restaurants that are torn down and completely rebuilt at the same location have seen sales climb by as much as 30%, Chidsey said in the report.

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