Comments on: The Burger King $1 Cheeseburger: How Much Does It Really Cost?

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By: Gordon Gannon

Gordon Gannon — Mon, 24 May 2010 18:59:23 +0000

The issue shouldn’t unfortunately have gone to a lawsuit. When a franchisor begins to get pushback from a meaningful number of its franchisees, it shoud listen, because it will never win by leaving a bad taste in the mouth of those who are really on the front lines closest to the customers. Franchisees, like their franchisors, want to make money, so they know what they’re talking about when they question this type of transaction. This went on in Quiznos as Quiznos corporate pushed out buy one, get one free sandwich coupons — they nearly sunk their own ship! Burger King has had a history of bad relations with its franchisees, likely because as a franchisor it has changed hands and management many many times and the franchisor has lost touch with its operations. A franchisor has to have and retain very smart people at the top. When they do their franchise system works very well. When they don’t, you hear that manifested in the form of litigation. Very unfortunate for Burger King because they have very tough competition and need to keep their focus squarely on the competition!

By: Carnival of the Capitalists for 2010-01-04 | Carnival of the Capitalists

Carnival of the Capitalists for 2010-01-04 | Carnival of the Capitalists — Mon, 04 Jan 2010 12:03:24 +0000

[...] cheeburger cheeburger: http://smallbiztrends.com/2009/11/burger-king-cheeseburger-how-much-cost.html [...]

By: Joel Libava

Joel Libava — Thu, 19 Nov 2009 17:37:09 +0000

Robert,

Thank you…

My math skills are average. (At best)

But, if I am a BK franchisee, and I can sell a soft drink for $1.45, and let’s say my cost is .13, then….

The Franchise King
Joel Libava

By: Robert Brady

Robert Brady — Thu, 19 Nov 2009 16:25:24 +0000

That’s great publicity Joel and your advice is spot on. As for the Burger King debacle, both the franchisees and Burger King have valid points. The question is whether or not upsells are outweighing the loss leader.

By: Susan Payton

Susan Payton — Thu, 19 Nov 2009 13:00:11 +0000

I, unfortunately, have to agree with you about franchisors selling versus awarding franchises. I owned a Marble Slab Creamery last year. Got zero support from the company, which has left a permanent bad taste in my mouth for franchises. I understand not all are that way, but it’s up to the franchisor to help EVERY location succeed. It reflects upon them when a store closes.

By: Martin Lindeskog

Martin Lindeskog — Thu, 19 Nov 2009 11:38:09 +0000

Joel,

It could problem with Murdoch vs Europe! Do you have a transcript?

What’s your favorite fast food place?

By: Joel Libava

Joel Libava — Thu, 19 Nov 2009 11:35:15 +0000

Eric,

Thank you for chiming in.

A lot of people that want to get into a business of their own are not “idea people.” They are looking for a plan. A franchisor provides that.

Franchising is an option that some people choose.

The Franchise King
Joel Libava

By: Joel Libava

Joel Libava — Thu, 19 Nov 2009 11:31:41 +0000

Hi Martin,

It must be a European thing.

When I clicked the link at the end of the article, it cranked right up…

The Franchise King
Joel Libava

By: Martin Lindeskog

Martin Lindeskog — Thu, 19 Nov 2009 10:57:23 +0000

Joel,

I couldn’t listen to the interview. The video didn’t start. I don’t know if it was something wrong on Fox site.

As an experienced purchaser I am curious to know how much the ingredients are adding up. How much for the hamburger bun, beef patty, salad, and slice of cheese? My wild guess is that you could purchase all of these ingredients for a buck, but when you have all the other things to consider, e.g. wages, facilities, etc.

My question is why do you have these campaigns at all? Why not try to come up with other things than getting a huge crowd that want to have only cheap stuff. How about quality, service, adding extra value to the experience, and so on.