Burger King Goes Upscale

Updated from Tuesday, Oct. 6

NEW YORK (TheStreet) -- Some fast-food chains are adding beefier burgers or higher-class coffee to their menus in effort to lure consumers. Burger King(BKC Quote) is taking a more drastic approach: they're tearing out the furniture and ripping up the floors.

The company announced Wednesday that it is completely redesigning its restaurants -- with rotating red-flame chandeliers, TV-screen menus and industrial-inspired metal-and-brick walls -- in an effort to cultivate a sit-down restaurant ambience.

The redesign comes with a hefty price tag: The new look is expected to cost franchisees, which operate 90% of Burger King's locations, between $300,000 and $600,000 per restaurant.

Currently, 60 restaurants around the world have been remodeled in the new format, but it will take years before all locations make the switch. Burger King plans to revamp 75 locations by the end of next year.

As McDonald's(MCD Quote) invests in its more upscale McCafe initiative, Burger King is clearly attempting to keep pace with its restaurant revamp. At a time when consumers are more hesitant to eat out, Burger King is hoping that they'll be more willing to justify a sit-down dinner for $6, as opposed to a $20 meal at TGI Friday's.

The company is also ramping up its $1 offerings to keep pace with cheaper products at rivals.

Investors, however, appear unconvinced that an upscale Burger King image will sit right with consumers. Shares of the company slipped 1% to $17.20 after market on Tuesday.

-- Reported by Jeanine Poggi in New York

Follow TheStreet.com on Twitter and become a fan on Facebook.