Burger King sued over $1 burgers - Polidicks

[url]http://m.www.yahoo.com/_ylt=Al664gy.ia24zZ5EBh1NcyGbvZx4;_ylu=X3oDMTNoazJwcTU4BGEDMDkxMTEyIGZpbmFuY2UgYnVyZ2VyIGtpbmcgc3VpdCB0BGNwb3MDMQRnA2lkLTE1MTYxBGludGwDdXMEcGtndgM3BHBvcwMyBHNlYwN0ZC1mZWF0BHNsawN0aXRsZQRzbHBvcwNGBHRlc3QDNzAx/SIG=12qnsdoem/**http%3A//finance.yahoo.com/news/Food-fight-Burger-King-apf-1338962807.html%3Fx=0%26.v=5[/url] [quote]CHICAGO (AP) -- Burger King franchisees sued the hamburger company this week over its $1 double cheeseburger promotion, saying they're losing money on the deal and the company can't set maximum menu prices. The National Franchise Association, a group that represents more than 80 percent of Burger King's U.S. franchise owners, said the $1 promotion forces restaurant owners to sell the quarter-pound burger with at least a 10-cent loss. While costs vary by location, the $1 double cheeseburger typically costs franchisees at least $1.10, said Dan Fitzpatrick, a Burger King franchisee from South Bend, Ind. who is a spokesman for the association. That includes about 55 cents for the cost of the meat, bun, cheese and toppings. The remainder typically covers expenses such as rent, royalties and worker wages. "New math, or old math, the math just doesn't work," Fitzpatrick said. After testing the $1 deal in markets across the country, the discounted burger went on sale nationwide last month even though franchise owners, who operate 90 percent of the company's 12,000 locations, twice rejected the product because of its expense. "The current management team has disregarded rights that Burger King franchisees have always had," Pennsylvania franchise owner Steve Lewis said in a statement.[/quote]

But they would make up the profits with the greater flow of customers.

McDonalds still wins by 10 cents.

I just got one of those today as a snack when i went for a walk. If the staff is properly trained they can make them fast enough the wages do not effect the math enough and can turn a profit for better trained franchises. [QUOTE=Pepsi-cola;18343842]But they would make up the profits with the greater flow of customers.[/QUOTE] Also this, they are more likely to buy more than just a single burger, they may buy a drink or something.

[QUOTE=Figgis Fiddis;18343855]McDonalds still wins by 10 cents.[/QUOTE] McDonalds is vile.

They'd still make money if people buy other things and not just a burger, it isn't like they lose money on EVERY item sold.

[QUOTE=Deadoon v.2;18343865]I just got one of those today as a snack when i went for a walk. If the staff is properly trained they can make them fast enough the wages do not effect the math enough and can turn a profit for better trained franchises. Also this, they are more likely to buy more than just a single burger, they may buy a drink or something.[/QUOTE] But they could also steal a bunch of napkins. :(

It isn't like they don't make a 90 percent profit on all sodas

They should just lower their wages.

I wonder how much that store hated the guy that ordered 100 burgers from Burger King. Edit: [url]http://www.facepunch.com/showthread.php?t=688187[/url]

[QUOTE=DamagePoint;18344070]The should just lower their wages.[/QUOTE] Nah the increase in workload would lower morale.

[QUOTE=Pepsi-cola;18344093]Nah the increase in workload would lower morale.[/QUOTE] Screw morale, shackle them to the counter and force them to work for food instead of money.

[QUOTE=PartyPancake;18344119]Screw morale, shackle them to the counter and force them to work for food instead of money.[/QUOTE] But then they'd only make burgers and drinks and fries when they are hungry.

impossible, it has to be a matter of 20$ or more, right lankist? [editline]04:17AM[/editline] sorry, misleading title, rate me dumb :P

Oh fuck oh fuck they're gonna be poor.

That's actually a legitimate reason to sue. It's not like some fat bastard choked while stuffing his face with them and decided to press charges.

You know that whole "at participating locations" thing? Individual franchises can choose not to participate in the deal. They should have done the math before agreeing to it.

[QUOTE=Pepsi-cola;18343842]But they would make up the profits with the greater flow of customers.[/QUOTE] Think for a moment. Most of these franchise owners are successful businessmen. What you say is possible, but you'd have to perform some extensive market research to determine what on average people bought when they came into a Burger King with this deal in place to prove it. I'm willing to bet some of these guys already have, and have enough experience in the fast food industry to know that they stand to suffer as a result of the deal. Franchisors often suffer from a compulsive urge to treat all their franchisees as a homogeneous horde from which to squeeze profits, and in their greed forget that certain tactics aren't sustainable for everyone involved. This type of gripe is fairly common and wholly warranted.

[QUOTE=Xenocidebot;18347312]Think for a moment. Most of these franchise owners are successful businessmen. What you say is possible, but you'd have to perform some extensive market research to determine what on average people bought when they came into a Burger King with this deal in place to prove it. I'm willing to bet some of these guys already have, and have enough experience in the fast food industry to know that they stand to suffer as a result of the deal. Franchisors often suffer from a compulsive urge to treat all their franchisees as a homogeneous horde from which to squeeze profits, and in their greed forget that certain tactics aren't sustainable for everyone involved. This type of gripe is fairly common and wholly warranted.[/QUOTE] Someone who actually knows what they are talking about On FP? Thank you for this post.

Their $1 double cheese burger sucks anyways. Now the junior whopper. That is good.

[QUOTE=Deadoon v.2;18343865] Also this, they are more likely to buy more than just a single burger, they may buy a drink or something.[/QUOTE] Fast food joints make like 90 cents profit off a 1 dollar drink.

[QUOTE=vassikinexthree;18343878]They'd still make money if people buy other things and not just a burger, it isn't like they lose money on EVERY item sold.[/QUOTE] The clue is in the name [B]Burger King.[/B] Most of their profit comes from burgers...

[QUOTE=:smug:;18352601]The clue is in the name [B]Burger King.[/B] Most of their profit comes from burgers...[/QUOTE] And most people want fries or a drink with that burger.

[QUOTE=HookerVomit;18343874]McDonalds is vile.[/QUOTE] They're both vile you just have to decide which is the lesser.

[QUOTE=:smug:;18352601]The clue is in the name [B]Burger King.[/B] Most of their profit comes from burgers...[/QUOTE] No it doesn't. Drinks are the main profit source.

[QUOTE=HookerVomit;18343874]McDonalds is vile.[/QUOTE] As is Burger King. Admittedly, BK is less vile, but neither are particularly nice.

[QUOTE=:smug:;18352601]The clue is in the name [B]Burger King.[/B] Most of their profit comes from burgers...[/QUOTE] Usually from drinks. You know that coke you're buying, well it ain't the same coke you get in the shop. It's some weird ass syrup shit they mix with water as it comes out of the nozzle. Costs next to nothing.

Burger King sucks ass, their hamburgers taste like shit. McDonalds might be more childish, but their hamburgers cause your mouth to have 300 tastegasms because they taste so incredibly awesome!

Ah, good ol' BK! It's nice that they are like "FUCK NO DO YOU IDIOTS KNOW WHAT A RECESSION IS?! WE CAN'T CHARGE MORE FOR BURGERS!".........though it doesn't really matter to me as I still buy either a $6 Steakhouse burger or a $5.50 to $6 double or triple Whopper. That $1 stuff is too small and just does not fill me up....

[QUOTE=HookerVomit;18343874]McDonalds is vile.[/QUOTE] Seriously this. At least burger king actually tastes delicious while clogging up your arteries, while McDonalds burgers are limp patties with less meat than a catwalk model and garnish that tastes like plastic.