Burger King is continuing to build momentum in international markets through its decision to increase energy efficiency in its Waghausal, Germany restaurant. Not only is this a strategic move with regards to cost reduction, Burger King will be able to strengthen its appeal as a socially-conscious corporation. Burger King plans to use technologies such as LED lights, wind turbines, and ventilation systems, and the use of such will decrease the restaurant’s energy consumption by 73%. The implementation of such ecologically-friendly features has large financial benefits for Burger King in terms of fixed production costs: the use of a Duke Flexible Batch Broiler in the kitchen is expected to reduce gas costs by 52% and electricity costs by 90%. This cost reduction will result in an increased contribution margin and decreased break-even point, and this is significantly profitable for the corporation in the long-run (once the initial costs of implementation have been recovered). Burger King is simultaneously enhancing its appeal as a socially-responsible firm: its efforts to undergo energy-efficient operations convey a positive externality on society. Burger King stakeholders are not the only ones to benefit from the business – the corporation is practicing corporate social responsibility and benefitting the surrounding community through a more resource-conscious establishment.
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