Wednesday, November 18, 2009

Burger King Sues Burger King Over $1 Burger

Yes, you read that correctly - last week, Burger King Franchisees sued the Chain over their new, vehemently opposed $1 double-cheeseburger promotion.

The cost to make the burger is actually $1.10, meaning that franchisees are losing 10 cents per burger. The $1.10 is made up of about 55 cents for the meat, bun, cheese and toppings, with the remainder covering expenses such as rent, royalties and worker wages.

Even after testing the deal nationwide, franchisees rejected it twice because of it's price. The chain went ahead with the program as scheduled since, apparently, they have the right to require franchise owners to participate in their value menu promotions. Dan Fitzpatrick, a Burger King franchisee from South Bend, Ind., and a spokesman for the National Franchise Association said "New math, or old math, the math just doesn't work,".

Catch up on all the details in the article called "Food fight: Burger King franchisees sue chain" from the Associated Press (Nov. 12, 2009)