Burger King franchisees are FURIOUS about an extended promotion for 99-cent double cheeseburgers, and have sued the chain over the deal. Why? Because they’re being forced to sell the burgers at a loss.
BK, of course, wants to offer customers a good deal in the recession. But they’ve now ticked off the people who run their restaurants.
This is obviously not the first time this has happened. Last year, a family-owned, NYC-based franchisee (Elizabeth and Luan Sadik, pictured) sued the chain because it had to shut down several locations — because the $1 BK value menu killed their ability to make a profit.
More from the AP:
The National Franchise Association, a group that represents more than 80 per cent 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 maths, or old maths, the maths 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 per cent 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.
Denise Wilson, a spokeswoman for the nation’s No. 2 hamburger chain, said the Miami restaurant company believes the litigation is “without merit,” particularly after an earlier appeals court ruling this year showing the company had a right to require franchise owners to participate in its value menu promotions.
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