Franchises to Burger King Corporate: You Can't Have it ALL Your Way

[marmar]

via the Chicago Sun-Times:



BK $1 burger math 'doesn't work'
November 13, 2009


Burger King's $1 double cheeseburger may be a great deal for consumers, but not for the franchisees selling them, according to a lawsuit.

Burger King franchisees sued the No. 2 hamburger chain this week over the promotion, saying they're losing 10 cents on every double cheeseburger sold, and they argue the company doesn't have the right to set maximum menu prices.

Dan Fitzpatrick, a Burger King franchisee from South Bend, Ind., speaking for the group, said it costs about 55 cents for the meat, bun, cheese and toppings and about 45 cents to cover expenses such as rent, royalties and worker wages.

"New math, or old math, the math just doesn't work," Fitzpatrick said.

- AP


http://www.suntimes.com/news/nation/1882150,CST-NWS-bk13.article

[closeupready]

1. Bought a couple for lunch - yummy.

:D

[Orrex]

2. How do they explain the $7.00 charge for 32 ounces of soda?

[laconicsax]

3. Doesn't it cost something like 5 cents to make a soft drink they sell for over $1?

[Dreamer Tatum]

4. Think of a fast food joint as a giant soda fountain

that's where all the margin comes from. They make almost no money on food.

[Captain Hilts]

5. True. nt

[TheCowsCameHome]

10. Carbonated gold............

[JVS]

15. Shhhhhhhh

[Bonhomme Richard]

6. "losing 10 cents on every double cheeseburger sold" and making.....

all kinds of profit on every order of fries, drink and maybe dessert that goes with it.
Greedy fucking morons.
Not to mention the ones that come in a group that don't want the double cheeseburger.

[DJ13]

7. The patties got smaller when they introed the $1 version

I used to buy the regular priced double cheeseburger all the time, and the $1 version has smaller patties.

I still prefer the McDouble at McDonalds.

[MidwestTransplant]

8. Sure they lose 10 cents on every burger but the can make it up with volume ;)

[tridim]

9. Hehe reminds me of that old SNL skit with the bank that only "makes change".

"How do we survive? Volume!"

[SidDithers]

11. It's called a loss leader...

lose $.10 on the burger, make $1.50 on the soda, and $0.75 on the fries.

(or whatever the numbers actually are)

Sid

[OmmmSweetOmmm]

14. Exactly.

[niyad]

12. last time I took a math class, 45 +55 =100. have I missed something?

[nemo137]

17. profit.

55 is materials, 45 in wages, corporate bullshit, etc = the franchises just breaking even, at least on the double cheeseburgers.

[RB TexLa]

13. They are free to start a "Burger Jones" or "Burger Smith" and not have the national name

recognition and advertising that Burger King provides for them.

[JVS]

16. If they don't have their loss leaders, they won't sell a fucking thing.

[Lone_Star_Dem]

18. If you refuse to compete in the market you'll go out of business. Problem solved.

Done correctly there's no reason one tempting loss leader should cause them to go into the red. However, with all the competition out there, and the fact the all their major competition uses loss leaders now, there's every to fear a major loss of market share if they don't offer up a "budget" priced item or two.

[Tabasco_Dave]

19. The advertisement says it has 1/4 lb. of meat

by law it has to have that much meat. So basically your getting the equivalent of a McDonald's quarter pounder for a dollar. I just buy the burgers because i used to work at Burger king and it's my way of getting revenge. :evilgrin: