Monday, September 19, 2011

Dollar double cheeseburger leads to food fight between Burger King, franchises!!?

Okay, so what's the big deal?? Burger King has asked franchise owners to offer the double cheeseburger for $1 in obvious compitition with McDonalds $1 menu. The sandwhich costs $1.10 to make so franchise owners are upset about taking a loss on the menu item... Okay, we all know food chain menu prices and special offers change all the time. So apply some simple economics here franchise owners!! Raise the price of other things a little to make up the difference. How about raising other menu items up a penny or two in cost until the $1 special ends. If it doens't end...so what? Leave prices set up a little bit. Franchise owners set the prices anyway. So use some common sense and quit wasting taxpayer money with stupid lawsuits against a company that's trying to bring you in more customers! How do others feel about this?Dollar double cheeseburger leads to food fight between Burger King, franchises!!?Franchisees must pay the franchisor (McDonald's, Burger King, Subway.. whoever it is) a Royalty on the use of the name before anything else except taxes. Also, many of the franchised restaurants you see in your town are on properties owned by the franchisor (Building and land) and all the Franchisee owns is the equipment (grills, fryers, etc.) inside and the inventory (meat, buns, cheese, etc.). This is especially true of the stand-alone stores you see on the street corner, but not so much of the food-court locations; those are owned by other real estate companies -- malls, airports, etc. So they also have to pay rent. And then there is business taxes on the equipment that is paid to the state or county.



In addition, most franchises are subject to a contract with the franchisor that binds them to abide by the pricing structures determined by a local market consultant. Further, most of the advertisements that we see on TV say in very small letters at the bottom of the screen %26quot;Price and participation may vary.%26quot; But the ones that choose not to participate in regional or national promos tend to lose business.



In addition to all that I have mentioned above, there is also the cost of the utilities to operate the store, the payroll, taxes, rents and royalties, food costs, so if they are losing ten cents on one burger ($1 - $1.10 = -0.10) then they will lose a dollar on 10 and never catch up because they will lose $10 on a hundred, et cetera.





As for your assertion about filing lawsuits being a waste of taxpayer money...only if it gets to trial. You may not realize this, but they have to pay a filing fee to get their case on the docket and it may still get thrown out just the same, and they do not recover the filing fee in that case, except by claiming it as a business expense on their corporate taxes, and even then they don't reclaim 100%.Dollar double cheeseburger leads to food fight between Burger King, franchises!!?they wont really lose money, because increased sales will actually bring in more money. also the sandwich takes less than a quarter for them to make. they did this to make MORE money.



also its much better than the mcdonalds burger. Much much better.Dollar double cheeseburger leads to food fight between Burger King, franchises!!?idk...seems like a moron made th first mistake and know all theese owners have to pay for his stupidity!



P.S. burger king is awesome!!!Dollar double cheeseburger leads to food fight between Burger King, franchises!!?It's because they are losing money., you would be grumpy too if you were losing money right?Dollar double cheeseburger leads to food fight between Burger King, franchises!!?so greedy, they make so much money as is, who cares let the people liveDollar double cheeseburger leads to food fight between Burger King, franchises!!?good when it gets to fifty cents i'll take my friends! lol
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