Bookmark and Share

Burger King Franchises Sue Burger King

By GEOFF WILLIAMS, AOL SMALL BUSINESS
Posted: 2009-11-16 15:18:31
Burger King double cheeseburger
AP
What's on the menu at Burger King these days? A lawsuit.

Burger King's own franchisees have a beef with Burger King. Specifically, they're upset about the $1 double cheeseburger promotion. Maybe you've seen it; commercials for the $1 cheeseburgers have been broadcast a lot during football games. The complaint from the National Franchise Association, an organization that represents more than 80% of Burger King's American franchise owners, is that the $1 promotion forces restaurant owners to sell the quarter-pound burger with at least a 10-cent loss.

A spokesman for the NFA told the Associated Press that a typical $1 double cheeseburger costs them at least $1.10: 55 cents go into the cost of the meat, bun, cheese and toppings; the rest covers the expenses like rent, royalties and worker wages.

Of course, I'm guessing that won't cut the mustard at the Burger King Holdings Corporation, the parent company for Burger King. After all, the idea behind a lot of these promotions is that you do take a loss on an item -- that's why the term loss leader was invented. You take a hit on a popular product, like a double cheeseburger, and then you hope that when customers come to get it, they'll wind up spending money on soda and fries, or maybe some customers will their change their mind and wind up getting the Steakhouse XT Burger.

At any rate, it'll be interesting to see how this plays out in court, if it makes it that far and how this affects Burger King. Surely the press that Burger King receives from the lawsuit will entice more customers to go check out the $1 double cheeseburger, which will end up causing Burger Kings across the country to lose even more money than ever -- or to make more than ever. It's enough to make one wonder if the lawsuit is part of the promotion.

2009-11-13 11:48:39
Bookmark:

Recent Comments

1 - 10 of 204
204 comments

gw72315 01:13:53 PM Nov 15 2009

They need to be sued for advertising also. Go buy one of their double cheeseburgers ad see if ti looks like the one in the picture. The one in the picture has burger patties sticking out past the edge of the bun!!! On the ones I got when I orders a couple of them, the patties didn't even come close to the edge of the buns. And they sure didn't lose any money of the mustard and ketchup--one little squirt of each right in the middle of the burger. What a rip off....

fathertimema 04:34:38 AM Nov 14 2009

One thing about Burger King there Burgers are good. The few times I buy a burger I always go to Burger King. I used to go to Mc Domanls but there burgers if you can call them that sucks. Poorly cook and just does not taste that great. I use to wonder if they use horse meat ??Mc Donals are crap. Plus the morons screws up the orders.

chigirlmi 11:38:23 PM Nov 13 2009

nealirving - You never could get one before 10:00 a.m. stupid. Breakfast is cooked at a different temperature than burgers. They switch the grill temps at that time.

jwat66 10:35:58 PM Nov 13 2009

you franchise owners are dumb. you might have to sell the burger for a little less but look at the higher quantity that you will sell. darn, if i were a franchise owner, i would be jumping for joy at the increased sales that it would bring.

ferguson27 09:17:02 PM Nov 13 2009

Viceverse,how many teeth do you chip before you wake up.I can't take it any more,I tried and tried to be a BURGER KING PATRON,I"m DONE

rpm100mm 09:14:11 PM Nov 13 2009

where's the BEEF??? :-(

ferguson27 09:12:20 PM Nov 13 2009

what happened to my SONIC??????????

ccorwin 08:50:10 PM Nov 13 2009

We stopped at a BK near Marshall, MI off of I-94 on Nov 1st... they were out of hamberburger meat - I guess because of the promotion... they lost our business - went to McD's across the street....

hbaseballman36 08:47:43 PM Nov 13 2009

Actually some use "I don't have time to cook" as an excuse to stuff their noses, but also some people actually are working two, three jobs. I am not one of them, because i'm only a kid, but you must have some sympathy unless its their fault then you can get rid of the dirty, sorry excuse for an american. Anyways, the real fact that we must face is that sometimes it is good to get out once in awhile whether we like the food or not. I mean stuff can get ultra salty/greasy/repulsive, but it is nice to socialize like homeschoolers do. lol only poking, but anyway that little verbal match going on between different news stations is really getting old. I have to admit there is a defecit/depression going on, but is not because of Republicans or Demorcrats or the totally, put-down , current president Obama or the infamous, war president Bush, but we as americans must rise up and stop fussing about what MSNBC said or what Sarah Palin the hockey mom did. I mean really did we inhabit America for n

engineherder 08:29:11 PM Nov 13 2009

the double cheeseburger at McDonald's is 1.49 or 1.39. Why not charge 1.29 and advertise the price and size difference. Hopefully the profit will come from sides, but the business would still make a little money on the burger.

1 - 10 of 204
204 comments

Add your own Comments

The Startup

The Startup

The Startup, the web's premiere online reality show for small business owners, is back for its third season! Watch as we follow four entrepreneurs to see how they're making their businesses come to life.

  1. The Startup

    Small Business Checklists

    It can be difficult to keep up with all the details involved in running a small business. Don't lose track of the details -- use a checklist to keep yourself organized.

    1. Checklist: Starting a Business
    2. Checklist: Closing a Business
    3. Index of Small Business Checklists

      AOL Coaches

      Jake Steinfeld

      Business Coaches
      Starting your own business can be a daunting task. With AOL's Small Business Coaches, you can get the best advice to guide you through the process.