This story was also featured on Yahoo news. Basically BK Franchises are suing the corporation for the implementation of the dollar double cheeseburgers. The company looses about 10 cents on each burger. The yahoo article touched more with the Franchisee owners who were deducing that if you are losing 10 cents on each burger, it makes no sense to have that on the menu. Simply put yes, this is correct, but the objective is to increase overall business at BK. Use the burger as bait and get them to buy a large fry and a soda (which has great markup anywhere).
The Ad Age story does a great job with some figures on the effects after the Double Cheeseburger change came into effect. Well, Sales are improving compared to previous figures, however for one franchisee, the average check is down as well as the gross profit margin. If other stores are getting the same kind of feedback, I would advise BK to take away this promotion.
The winner in this case is the consumer (at least for now). In fact I think I will enjoy some BK tonight. Maybe get a double cheeseburger and a king size fry.
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