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Burger King's 19-Cent Compromise

Posted by Sara Zucker on February 18, 2010 03:35 PM

Unfortunately for Burger King customers, the $1 double cheeseburger was too good to be true. Prices will increase to $1.19 in April as an attempt to repair a strained relationship between the chain and its franchisees that was caused by the discounted product. 

According to one Burger King restaurant owner, “the Whopper's price has been stalled for close to three years as the chain has held the price steady on the Whopper Jr. at $1. A higher price for the Whopper makes sense, only with a concurrent increase for the smaller sandwich. Stores don't want customers buying two or three Whopper Jr. sandwiches instead.”

Though $1 menu items have the ability to increase foot traffic to stores, the discounts can inevitably hurt a brand overall. While burger fanatics loved the price, unhappy store operators filed a lawsuit against Burger King saying that they were losing money. The double cheeseburger's usual cost ranges from $1.89 to $2.39 depending on a store's location. Consumers need not fret, however, as Burger King will soon offer a BK Dollar Double for $1, which is a similar burger with one less slice of cheese.

No franchisee likes feeling jilted by their parent company, and this settlement represents an important compromise as Burger King attempts to please both customers and franchisees alike. In the recession, many fast food brands have fared well by offering discounted specials in a category already considered by many budgeting consumers to be a viable option for cheaper meals.

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Comments

Anne United States says:

Watched a movie called "Foodinc" lately?  You'll never look at that Burger King hamburger the same way again.

February 18, 2010 03:55 PM #

Bob United States says:

My brother used to call Burger King 'burglar king' because of the high prices. BK need to either compete with McDonalds on price or significantly improve their offering and change their position within the market.

February 19, 2010 10:54 AM #

MSGDS United States says:

Price reductions are needed across the board to improve and increase their customer relations.

February 19, 2010 11:41 AM #

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