These sandwiches are part of a system which eventually became known as the barbell strategy; a plan designed to expand Burger King's menu with both more sophisticated, adult-oriented fare along with products that are more value-oriented.
The hope is that the customers would be drawn in initially for the lower prices of the value-menu and upgrade to the more expensive products, upping overall sales.
The next product Burger King introduced was its Angus Steakburger which it began selling in 2004; it too had lack-luster sales due in part to the patty being pre-cooked.
In New Zealand, the chain first introduced the BK Crown Jewels line which was based upon the Whopper, TenderGrill, and TenderCrisp sandwiches.
[1] In 1978, Donald N. Smith was hired from McDonald's to help restructure the corporate operations of Burger King to better compete against his former company as well as the then up-and-coming chain, Wendy's.
[4][5] It, along with the Original Chicken Sandwich, was one of the first attempts by a major fast food chain to target a specific demographic, in this case adults aged between 18 and 34 years, members of which were presumably willing to spend more on a higher quality product.
The sandwich was introduced at the height of the low-carbohydrate diet craze that was popular in the United States at the time, a trend that Burger King hoped to capitalize on.
[23] While the burger was presented as a premium product, the meat texture was found not to be much different from that of the Whopper – a less-expensive sandwich that many customers preferred.
The new burger featured a large, square shaped Angus beef patty with two permanent variants of the sandwich with an LTO version later that year.
The older model relied solely on a single chain with uniform cooking speed and temperature which restricted the thickness of meat patties.
In press releases and interviews regarding the sandwich, the chain claimed that the "Steakhouse Burgers offer the indulgence of an entire steak dinner at a fraction of the cost".
[25] By October 2008, Burger King announced it had shown revenue growth in the United States despite the ongoing fiscal slowdown related to the financial crisis of 2007–08.
Unlike the preceding two sandwiches, this version was not made from Angus beef, but was intended to draw upon its ingredients and size as it defining characteristic.
[17] A higher-end version of the Steakhouse XT was first introduced in 2009 at the company's new BK Whopper Bar restaurant concept located at Universal Studios Orlando priced at US$5.29.
[17][31] At its BK Whopper Bar restaurants, the company added several other varieties beyond the initial one introduced in 2009 that were all exclusive to the high-end concept.
[32][33] The sandwich came at a time when there was a great deal of animosity between the chain and its franchises over its Buck Double promotion, which was driving average checks and profits.
[32] By mid-2011, the financial crisis was also still lingering and many chains, Burger King included, had moved to a discounting as a way to attract customers who were unwilling to spend money during tough economic times.
The discounting fit into the barbell strategy as these deals would often encourage people to purchase more food, often at higher price points.
[36] These burgers arrived at a $3.99 price point, and were deemed as a questionable introduction in the midst of hard economic times and extensive value-oriented promotions.
[39] Introduced as part of 3G Capital's menu restructuring, the sandwich featured a new 5.5 oz (160 g) ground chuck patty, a new "artisan" bun and new, reformulated bacon.
[41] The sandwich was designed to compete with McDonald's existing Angus Third Pounder line and Wendy's new Dave's Hot 'N Juicy Cheeseburgers.
[45] Besides the Chef's Choice Burger, the company introduced products that emulated McDonald's such as oatmeal, ice cream and smoothies.
[45][46] Another way that the company moved in order to update its message was by dropping long time agency of record, Crispin Porter + Bogusky (CP+B).
Although Burger King stated that no traces of horse meat had been found in their patties, they were processed in the same factory as some affected products and were withdrawn as a precaution.
[55] The BK Crown Jewels line was developed by the Burger King franchisee in New Zealand, Tasman Pacific Foods, abbreviated TPF.
[56] The products themselves were variations on the existing Whopper, TenderCrisp and TenderGrill sandwiches and featured more exotic ingredients such as mango lime salsa, avocado and garlic aioli.
[56] Within two months of their introduction, sales at New Zealand restaurants had increased by approximately 10%, and drew the attention of Burger King Holdings.
[56] Some restaurant industry observers agreed with the TPF assessment of the products and separately stated other sauces and ingredients could be used to create variations in the US and other markets.
[60] The new sandwich line was part of a co-branded partnership with AngusPure, an Australian brand of grass-fed, organic beef,[61] and condiment supplier Heinz.
As the success of the barbell strategy became evident to the general market place, other chains such as McDonald's and Carl's Jr./Hardee's began to experiment with the concept.