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Solid business plan yields a Whopper of a success

It may have been a flame-broiled hamburger and salty fries that whetted Burger King franchisee John “Jack” Muirhead Jr.’s insatiable appetite for entrepreneurship.

Muirhead tried Burger King for the first time during a family trip to Boston in 1976. And the Connecticut native tasted opportunity the first time he bit into a Whopper.

Muirhead surprised everyone — including himself — when he started thinking about buying a fast food franchise.

“We didn’t eat fast food,” said Muirhead. “To tell you the truth, I was surprised by how much I truly enjoyed it. That visit really sparked my interest.”

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Muirhead, who opened his first franchise unit in 1980, has since carried over his hunger for success to grow seven profitable restaurants in Connecticut and earn top franchisee honors from the hamburger chain.

Miami-based Burger King Worldwide recently recognized Muirhead as a top franchisee in the 6-19 restaurant category last month and praised him for “his excellent operations and focus on service.”

This year’s top franchisees in the 6-19 restaurant category included three finalists whose drive, dedication and groundbreaking achievements deserved to be recognized, said Steve Wiborg, president of Burger King.

Selection is based on consistent success in general restaurant operations, speed of service and cleanliness. Factors such as restaurant count, sales and overall dedication to strengthening the brand are also taken into account.

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Company officials say Muirhead’s restaurant locations consistently receive top tier guest satisfaction scores, landing in the top 5 percent system-wide.

Muirhead has one of the smallest turnover rates across the brand’s more than 7,400 North America restaurant locations and the average tenure of his regional general managers is 17 years.

Since he opened his first location 32 years ago, Muirhead has always looked for ways to beef up his bottom line while promoting employee recognition, management opportunities and customer appreciation.

“We created a special culture at Burger King,” said Muirhead. “We strive for perfection, but settle for excellence.”

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From the start, Muirhead worked to create a positive environment for customers and employees.

“We’ve always emphasized great customer service,” said Muirhead. “But it’s also important to have an atmosphere where employees can do their best.”

“It annoys me that people think a job at Burger King is a dead-end,” said Muirhead. “Our managers started as hourly employees who promoted up. These are people who own homes and send kids to college. There is a future here.”

Muirhead’s three kids worked the family business through high school, but only one returned after college. Muirhead’s daughter is an attorney and his youngest son works in the film business.

His middle child, John, 40, traded his banking career on Wall Street for a spot at the family business, where he helps Muirhead with day to day operations.

Muirhead’s company New King, a privately-held corporation based in Wethersfield, operates his seven Burger King franchises in Newington, Vernon, Wethersfield, East Hartford, Berlin, Hartford and Rockville. The Newington one came first in 1981 and Hartford is the most recent, opening in 2000.

In 2011, New King reported $7.9 million in revenues, well above the national average per store. According to the National Restaurant Association, a typical fast food restaurant or franchise generates sales of $670,000 annually.

Now Muirhead and his son are looking to develop restaurants in several locations throughout central Connecticut.

Burger King franchises cost between $300,000 and $2.8 million to start and typically occupies 2,500-square-feet of space in a free-standing location.

Burger King also works closely with MinorityFran, an association that raises awareness and provides resources for minorities who want to become franchisees.

The company charges $50,000 up front for franchise fees, and 4.5 percent of monthly gross sales for royalty and 4 percent of monthly gross sales for advertising.

It’s not a love for sweet potato curly fries that continues to draw Muirhead to the company. Muirhead’s dedication to family inspired him to grow a one-man franchise into the 250-employee hamburger business it is today.

“There are many great things about running this business,” he said, “like working with my son and being close to my family.”

Muirhead, credits the company for boosting business with new, healthier foods like wrap sandwiches, salads, fruit smoothies, soft-serve ice cream and other low-fat, nutritious menu items.

“People want healthy food options and a great dining experience,” said Muirhead. “We have that.”

He’s less certain about Burger King’s latest idea — home delivery. The concept is being tested and Muirhead is taking a wait-and-see position.

The fast-food market is large — it serves more than 50 million Americans daily and generates an estimated $65 billion annually, according to Chicago-based research firm Technomic Inc.

Started in 1954, Burger King operates more than 12,600 locations serving more than 11 million guests daily in 86 countries worldwide.

Following its acquisition by 3G Capital at the end of 2010, Burger King brought in new management, retired its mascot “The King” last year and began looking at new ways to revitalize its brand.

Burger King has struggled in recent years to keep up with the growth of McDonald’s, which managed to keep prices low through the recession while revamping restaurants and introducing new menu items.

In March, Wendy’s snagged second place from Burger King in the fast food hamburger market, according to Technomic’s analysis of the chains’ 2011 U.S. sales. Wendy’s had sales of $8.5 billion in 2011, compared with $8.4 billion for Burger King.

McDonald’s continues to rank number one in sales in the U.S., with $34.2 billion in sales.

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