Why Hungry Jack's Succeeded Where Starbucks Failed: The Unique Background of Australia's Burger King Counterpart
When Burger King expanded into the Australian market in the early 1970s, it faced a significant challenge: the name Burger King was already trademarked in Australia. This article explores the history of why Hungry Jack's became the iconic Australian fast-food chain, differing from its American counterpart.
Trademark and Franchise Dispute
Upon first attempting to enter the Australian market, Burger King, then owned by Pillsbury, encountered a roadblock. The name Burger King was already trademarked by a restaurant in Adelaide, a place many Australians recognize for its rich history. To circumvent this, they had to choose an alternative name. A man named Jack Cowin, who owned the franchise rights for Burger King in Australia, played a pivotal role in this process.
Cowin and Pillsbury brainstormed a list of potential names that wouldn't infringe on any existing trademarks. One of the most fitting names was 'Hungry Jack's,' which had a strong resemblance to 'Hungry Jack,' a brand that Pillsbury also owned and controlled. This creative solution allowed Burger King to continue its expansion without legal entanglements.
Trademark Lapse and Legal Battles
Fast forward to the mid/late 1990s, the trademark for the name Burger King lapsed in Australia. Simultaneously, tensions arose between Cowin and Burger King over the franchise agreement. This led to Burger King opening its first restaurant in Australia under the Burger King name in 1998, directly challenging the existing chain.
Early 1990s Expansion and Legal Disputes
The legal battles that ensued were intense and prolonged. Burger King and Cowin engaged in a protracted dispute, resulting in multiple restaurants opening under the Burger King name. However, after several years, the courts ultimately ruled in favor of Cowin, solidifying his exclusive but sub-licensable franchise rights.
Hungry Jack's: Retaining the Logo and Branding
Today, Hungry Jack's retains a brand and logo that closely resemble Burger King's original design. The mid-1990s Burger King logo was adapted with minor modifications, such as altering the colors and slightly changing the text. This allowed Hungry Jack's to maintain strong visual links to Burger King while establishing a unique identity suitable for the Australian market.
Distinct from Starbucks in Australia
Contrast this with the experience of Starbucks in Australia. In 1966, an American immigrant had already registered the Burger King trademark, having successfully expanded the brand across the country. Unable to secure the rights to Burger King, Cowin and Burger King opted for the name Hungry Jack's.
Although Starbucks tried to enter the Australian market, it didn't manage to establish a strong presence. Australians have a thriving coffee culture, with local baristas and coffee shops providing exceptional coffee experiences, which may have contributed to Starbucks' failure.
In conclusion, the unique story of Hungry Jack's highlights the challenges and creative solutions faced when expanding a global brand into a country with established trademarks. It offers a fascinating case study on how a name change and legal battles can shape the future of a fast-food chain in a foreign market.