The Story of Hungry Jack's and Burger King: A Tale of Business and Power
When I first came to Australia, I was met with a familiar sight - the iconic Whopper from Burger King. It seemed like they were everywhere, but little did I know that their journey into Australian shores was not without its challenges. The story of Hungry Jack's, a franchise owned by Sir Jack Cowin, is one of business, power, and perseverance.
In the early days, Don Dervan, a restaurateur with a passion for burgers, partnered with Burger King to open restaurants across three particular states in Australia. However, as the years went by, it became clear that Burger King wanted more than just a passive investment - they wanted to take control of the business entirely. The development agreement was renegotiated, and Burger King offered to buy Jack out or at least purchase a majority share of Hungry Jack's.
But Jack was not willing to give up his dream without a fight. He refused to sell, and instead, Burger King decided to terminate their contract with him. This move sparked a long and expensive court battle between the two parties. According to reports, Jack had already spent $8 million on the case, while Burger King estimated that they would have to pay upwards of $50 million to $100 million if they lost.
As the court case unfolded, it became clear that Jack was not alone in his determination to succeed. His business acumen and strategic thinking had allowed him to build a successful franchise from scratch. But he also showed respect for others - particularly those who start businesses without the luxury of financial reward. He spoke about the importance of teachers and other unsung heroes who dedicate their lives to making a difference.
In the end, the judge ruled in Jack's favor, awarding him $70 million in damages. The decision was seen as a major victory for the Australian businessman, but it also highlighted the cutthroat nature of the business world. As we often say, "winning isn't everything," and this case is a stark reminder that sometimes, it takes more than just financial power to succeed.
Today, Sir Jack Cowin, the founder of Hungry Jack's, is 81 years old and still active in the business world. His estimated net worth is a staggering $2.1 billion, not just from Hungry Jack's but from other successful ventures as well. Despite the challenges he faced, Jack remains committed to his work and continues to inspire others with his story.
As I reflect on this remarkable tale, I am reminded of the power of perseverance and determination. It is a lesson that can be applied to any aspect of life - business, relationships, or personal growth. Whether you're starting from scratch or building upon existing success, it's essential to stay focused, adapt to change, and never give up on your dreams.
So, what can we learn from the story of Hungry Jack's and Burger King? It's a tale of power, perseverance, and respect for others. As I conclude this article, I want to leave you with a message - being kind to others is just as important as success in business or life. Remember that there are those who dedicate their lives without seeking recognition or financial reward, and let us strive to make a positive impact on the world around us.
In conclusion, it's been an absolute pleasure sharing this story with my patrons. If you enjoyed this video, please don't forget to hit the like button, subscribe, and leave a comment below. Your support means the world to me, and I'm grateful for your engagement. Until next time, stay inspired, and I'll see you on Friday!
"WEBVTTKind: captionsLanguage: enI'm trying to find a Burger King but according to Google Maps there are no Burger Kings in the whole of Australia! Burger King. Burger King. Burger King. Burger King Burger King Burger King. We do have lots of amazing things in Australia like kookaburras and kangaroos the Opera House and we are known for lots of dangerous creatures like snakes and sharks and funnel web spiders. This one was in my kitchen a few years ago ... a yucky looking spider!That is disgusting 😬 It bites its victims repeatedly and causes death within 15 minutes but if you do decide to brave all out and come here you will not find a Burger King. In fact there was a long battle between the US and Australia over Burger King. To understand why it was such a big fight we need to go back to the beginning. Burger King started in the US in 1954 and by the 60s there were hundreds of stores across America and it was bought out by the flour company Pillsbury and then from there it spread all across the world.Eat like snake.Yes you do. Unhinge your jaw.Eat like snake. The Burger King triple whopper, eat like snake!But when they wanted to come to Australia they discovered a big problem ... an American man called Don Dervan had moved to Australia many years before and found we had no fast food restaurants. So he started his own drive-thru and also discovered the name Burger King had not been trademarked here so he trademarked Burger King and called his restaurants that.That's how I roll.By the time Burger King made it out here Don already had 17 Drive-in stores but not to be deterred Burger King bought the 17 stores but they couldn't pay him enough to convince him to sell the trademark so they couldn't use the name Burger King. About the same time that Don moved here a Canadian called Jack Cowan also moved to Australia and noticed the lack of fast food restaurants so he borrowed money from friends and family over in Canada and started a KFC franchise here in Australia. A few years later was when Burger King wanted to come and because Jack had experience they offered for him to be their master franchisee and spread Burger King throughout Australia but obviously not being able to use the name they gave him a list of other trademarks that Pillsbury already had and let him take his pick. Given that his name was Jack he chose Hungry Jack which is the brand on Pillsbury's pancakes pancake sauces and biscuits or we would call them scones. Hungry Jack biscuits are what big taste is all about Hungry Jack biscuits are the big tasting biscuits.And if you think that's the end of the story it's just the beginning. Let's take a break to thank today's sponsor Love and Pies. I've been playing this game for a few weeks now and it's got a good balance between story and gameplay. For the story part of it you are following along with Amelia who is trying to rescue her mom's cafe which had been burnt down so you need to rebuild build all of the parts of the cafe and as you go along to do that you get to choose how you want to decorate it, they'll give you a choice of three different styles so you can try out each one and choose the one that you like the best. To progress to new parts in the story you need to go into the kitchen and in the kitchen you merge food and drinks together to make the items that the customers sitting up the top order. There are regularly new in-game events and themes with different decorations and rewards. The latest theme is a cozy fall theme and there's even a pie festival in the town square that you can get involved in. Click on the link below to download Love and Pies and join in the fall season. It's free to download on both IOS and Android. Now back to Burger King, by 1990 Jack Cowen was doing great. He had opened 30 Hungry Jack stores across Australia and was the biggest franchisee outside of the US. It was time for his master franchise agreement to be renegotiated with Burger King and they made a few changes, they added in a development agreement which said he had to open four new stores every year across three particular States and Burger King had to approve each of those stores.Could I get a Whopper please?Meeting the development agreement was super easy. Business was booming in Australia and seeing the profits Burger King wanted in on the action they offered to buy Jack out or at least buy a majority share but he didn't want to sell so things got a little tense. Fast forward a couple of years after that and the original trademark problem resolved Don Dervan retired and he let the trademark lapse so Burger King snapped it up. Burger King then started opening Burger King restaurants in Australia at Shell service stations in direct competition with Jack, their own franchisee and unfortunately for them Hungry Jacks continued to do really well better than the Burger King restaurants. So then they put more pressure on ... remember that they had to approve new Hungry Jacks restaurants well apparently they whenever a Hungry Jack came up for renewal said that they had to do expensive renovations if they wanted to get their renewal through which meant that quite a few of them had to close down and as far as new restaurants, Jack was told he couldn't give new interested franchisees any documentation about becoming a Hungry Jacks franchise because the documentation was out of date but they didn't give him any up-to-date documentation which effectively put a freeze on any new restaurants opening by third party franchisees. Now if you also remember in that development agreement Jack had to open four new restaurants every year and he wasn't able to do that so he was in breach of that agreement and they wanted to terminate his contract. Now Jack reckoned if they hadn't have blocked him he could have opened 14 new restaurants every year so he took them to court. It was a long and expensive court case Jack had already spent $8 million on it and he estimated that Burger King had spent between $50 million and $100 million so he was getting worried because if he lost the court case and had to pay all of their legal fees that's a lot of money and we all know that Burger King likes to win. A very important message from Burger King winning isn't everything but it sure is fun. Aren't you hungry for Burger King now. After a long time looking at all the evidence the judge made a decision and Jack won the court case. He was awarded $70 million in damages. Fast forward to today and he is 81 years old he has an estimated net worth of $2.1 billion not just from Hungry Jacks but other amazing business deals that he did over his time and he still goes into the office every single day. When I came to Australia I had great admiration for you know being starting from scratch for those that also did that. Private companies building every dollar you know goes back into the business how do we expand and grow. I also have respect for those that is kind of the opposite somewhat of the analogy of those that are building a business but they do it for without great reward financially and as I say the school teachers in life those people donate their life for others. They do it without kind of a system of reward they do it for the rest of the world and try and make this a better place to live, so I also have respect for them as as people that that I've got to know and and have influenced my life. What a legend also these are legends these are my patrons thank you so much for supporting this channel if you would like more videos like this make sure you hit the like comment subscribe all that stuff that tells the algorithm that you liked this sort of video. Make it a great week by being kind to others and I'll see you on Friday.\n"