C OMPETITION OF C IRCUS B URGER

The popularity of fast food and burgers in the Czech Republic comes with a price of strong competition and high market saturation. The fast-food burger market in Czech Republic is large. There are global chain players such as McDonald’s and Burger King present in the market. There is also small to medium sized local chain called Regál Burger and lastly there are other food trucks or stands like Burger man. All above mentioned establishments will be analyzed in terms of number of product offer, price, location and number of outlets.

7.3.1. Global chains focusing on hamburgers

Out of the global hamburger chains, two are present in Czech Republic: McDonald's and Burger King. McDonald's has been operating on the Czech market since 1992, so it has been operating on the Czech market for almost 20 years and in 2019 it opened 100 branches in the Czech Republic. (McDonald's, n.d.) Burger King entered the Czech market later in 2008. (ČTK, 2008) Most Burger King branches in the Czech Republic are operated by AmRest, however, the branch can be operated by anyone who meets the franchise conditions. (MediaGuru, 2020)

Product offer

The offer of both McDonald’s and Burger king is extensive. Current McDonald’s menu offers over 80 items. (McDonald's , n.d.) Current menu of Burger king offers over 12 items. (Burger King, n.d.) McDonald’s menu consists of breakfast offer, hamburgers, sides, menus usually consisting of hamburger, side and drink and deserts selection.

Additionally, there are certain signature dishes such as Happy meal – kids menu including toy targeted towards children. Happy meal and possibility organize

65

children birthday celebrations in McDonald’s restaurants are clever marketing efforts aiming to build lifelong customer’s loyalty and positive emotional attachment. Burger king’s menu consists of hamburgers, menus, wraps, sides, menus suitable for sharing, drinks and desserts. The Burger King menu is more varied in that it offers more dishes, which are not burgers and do not contain beef. Burger King also offers a hamburger with a vegan meat alternative.

Price

Price of McDonald’s Burgers range from 35 CZK for basic cheeseburger to 135 CZK for the most expensive Double big Tasty Bacon. (McDonald's, n.d.) Burge King is noticeably more expensive. The cheapest cheeseburger costs 49 CZK and currently the most expensive hamburger on the menu Kings Whiskey BBQ double costs 259. (Burger King, n.d.) This is 124 CZK more than how much the consumer pays for the most expensive hamburger in McDonald’s. Significant part of orders made in both establishments are menus, which include side of fries and beverage. Menus in McDonald’s costs approximately 150 CZK and in Burger King the price of menu ranges from 159 CZK to 355 CZK. However, it's important to keep in mind that both chains offer discount vouchers, either in their mobile aps or via mail, thanks to which consumers can buy many items from the on buy one, get one basis or purchase the item for reduced price.

Location & number of outlets

There are currently 108 McDonald’s branches in Czech Republic (McDonald's , n.d.) which are located in regional cities, cities with more than 50 000 inhabitants and on major transport routes. Burger King is located in the same locations, with the difference that it has only a little over 30 branches in the Czech Republic. (MediaGuru, 2020) Both chains also offer food delivery, McDonald's through third parties such as Wolt, Bolt and DameJidlo. Burger King provides food transport directly to the territory of the capital city of Prague.

7.3.2. Local chain focusing on hamburgers

An example of a local fast-food chain focused on burgers is Regal Burger. This company operates in the Czech Republic and Slovakia in the form of a franchise.

Product offer & pricing

The menu offered by Regal Burger is considerably smaller than the menu of global chains. Contains approximately 20 items that include burgers including vegan burger, sides, condiments and drinks. Prices for hamburgers range between 200 CZK and 250 CZK. (Regal Burger, n.d.) Regal Burger does not offer special menus that include, for example, a hamburger, a side dish and a drink. According to the operator's website, the company also offers catering.

66 Location & number of outlets

The company has 17 branches in Slovakia and 4 branches in Prague. (Regal Burger, n.d.)Regal Burger currently has no branch in the Czech Republic outside of Prague. As with global chains, branches are located in large cities, department stores or otherwise exposed locations. All branches also offer delivry.

7.3.3. Local food trucks focusing on hamburgers

In last three years there has been certainly increase in number of food trucks in Czech Republic. Currently number of food trucks in Czech Republic can be counted in tens.

However, it does not exist, at least the author of the work is not known food truck, which would be a direct competitor to Circus Burger. There are several food trucks like Take Eat EZ or Fire Food truck that have burgers in their menu. However, Take Eat EZ specializes in American barbeque and Fire Food truck in Mexican cuisine.

Another possible indirect competitor could be the well-known Brno food truck Bucheck, which specializes in pulled pork sandwiches, not burgers. Bucheck proves how important food trucks are in the place where they sell. The owners of Bucheck managed to negotiate a stand at Zelý Trh square in Brno, which is one of the busiest locations in Brno. Bucheck gained in popularity thanks to the combination of quality food and excellent location availability for customers.

67