Business Wars

It’s 1948, and somewhere around the edge of the Mojave Desert, a drive-in restaurant is making waves. It's called McDonald’s and it’s like no burger joint anyone’s seen before—a carhop-free eatery with lightning fast service, and shockingly low prices. But McDonald’s proprietors aren’t dreaming as big as the entrepreneurs traveling to California to see their groundbreaking restaurant. And for would-be burger king Keith Cramer and milkshake machine salesman Ray Kroc, that’s a golden opportunity.

It’s the late 1950s and fry cooks are flipping as fast as they can. But McDonald’s and Insta-Burger King’s desire for national success far outstrips their ability to deliver. It’s not enough to just make a better burger: bad contracts, bad equipment, limited capital and investors who don’t believe in 15-cent burgers threaten to stop the race in its tracks. Ray Kroc believes that he has the answers but to beat Insta-Burger King and a new aggressive competitor from Indiana, he has to get out from the McDonald Brothers’ shadow--and he has to do it fast.

By the mid-1960s, Americans have developed a taste for fast, delicious, affordable food — and they’re demanding more. U.S. fast food franchises — McDonald’s, Burger King and Burger Chef — know that if they want to feed America and win the burger wars, they’re going to have to grow. But Wall Street is still reluctant to invest in a bunch of burger chains. And Ray Kroc is about to learn firsthand that those who can’t stand the heat need to be forced out of the kitchen.

It’s the 1970s, and the burger barons are turning to TV advertising to propel profits skyward. McDonald’s is betting that a little song and dance can give it the competitive edge, but Burger King is stepping up their ads as well: debuting a killer new slogan that’s sure to set it on a collision course with Burger Chef. And while the fast food wars continue to escalate at home, McDonald’s starts to set its sights abroad.

Burger King is under pressure. McDonald’s is wowing the nation with a new way to eat chicken and Wendy’s is quickly closing in on the number two fast food spot. Backed into a corner, Burger King prepares to bite back with an ad campaign attacking its rivals directly. The heat is on and the burger wars are about to get dirty. It’s a game of kitchen chicken. The only question is who will blink first.

It’s a new century and times are tough for the burger giants. Burger King’s in a rut and McDonald’s is about to report its first loss in nearly 40 years. Both brands need to reinvent themselves fast. But can they come up with strategies robust enough to shake off the coming economic crisis?

Egg McMuffins, Croissan’wiches and coffee. Today’s fast food fight is all about breakfast time. Wall Street Journal reporter Julie Jargon joins to talk about where Burger King and McDonald’s are headed, the rise of eating at home, and how fast-casual chains are taking a bite out of the market.