Burger King Puts Ad Firm on Grill Again : Seeks New Agency for 2nd Time in 13 Months
Burger King Corp., plagued by lackluster sales and corporate turmoil, turned up the flame on its advertising agency Friday and placed its $200-million ad business up for grabs.
For the second time in 13 months, Burger King said it wants to review advertising agencies, although it stopped short of saying it had fired New York ad firm N W Ayer. Officials did, however, state--in no uncertain terms--that they are unhappy with Ayer’s work, which includes the “We do it like you’d do it” ad campaign.
Unsatisfied With Results
The announcement comes at a time of corporate upheaval. Parent company Pillsbury recently said it planned to spin off Burger King in an effort to scuttle a takeover bid by Grand Metropolitan PLC. But Friday, a group representing about 1,200 Burger King franchisees worldwide opposed such a move, saying that it would saddle the chain with too much debt and hinder growth.
In a second announcement Friday, Burger King also named C. Ronald Petty as president and chief operating officer. Just four months ago, Petty was named president of Burger King’s U.S. operations.
“We’re not fully satisfied with the creative (work) we’ve seen,” said Joyce Myers, a Burger King spokeswoman. “And we’re not satisfied with the results. Therefore, we’re looking at the possibility of an alternative agency.” Before year-end, Myers said, Burger King expects to designate Ayer or another firm as a “primary” agency.
This marks the second time in less than two years that the struggling fast-food giant has put its advertising firm on notice.
‘Left Option Open’
Ironically, its former agency, J. Walter Thompson, is said to be in the running for the account. That agency created Burger King’s “Fast food for fast times” ad campaign and the much ridiculed “Herb” campaign, which featured a goofy-looking, bespectacled fellow who hid out in Burger Kings.
In an interview last week, Burt Manning, chairman of J. Walter Thompson, said he would consider taking a second whack at the Burger King business. “It’s farfetched and hypothetical,” Manning said, “but I wouldn’t rule it out entirely.”
Meanwhile, Jerry Siano, vice chairman of N W Ayer, sent a memo to Ayer employees Friday stating that while Ayer was still Burger King’s agency, “they have left open the option of looking at other agencies.” The memo continued, “If our relationship should change . . . you will certainly be kept informed.”
