The Glade 4.0

Really Nitefox, the traditional way to deal with upstart gentry and minor nobility is to do a visitation. Show up on their doorstep and have them feed, board and entertain the royal household until the offending minor nobility gets in line or goes bankrupt. Why this price setting stuff?

http://finance.yahoo.com/news/Food-figh ... l?x=0&.v=5

Food fight: Burger King franchisees sue chain
Dollar double cheeseburger leads to food fight between Burger King, franchisees

By Ashley M. Heher, AP Retail Writer

CHICAGO (AP) -- Burger King franchisees sued the hamburger company this week over its $1 double cheeseburger promotion, saying they're losing money on the deal and the company can't set maximum menu prices.

The National Franchise Association, a group that represents more than 80 percent 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 as well as 45 cents that typically covers expenses such as rent, royalties and worker wages.

"New math, or old math, the math 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 percent 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.

Restaurants, especially fast-food chains, have been slashing menu prices because of the poor economy. Executives hope the deeply discounted deals will bring in diners who are spending less when they eat out, or opting to stay home altogether.

When the $1 double cheeseburger was announced this fall, analyst said it could increase restaurant visits by as much as 20 percent. But despite that boost, a Deutsche Bank analyst said as much as half of the gain recorded from increased traffic could be lost because customers were spending less when they ordered food.

The lawsuit was filed Tuesday in U.S. District Court in Southern Florida.

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The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself. B. Franklin

"A mind needs books like a sword needs a whetstone." -- Tyrion Lannister, A Game of Thrones

You question the King? What do you think this is, Burger President?

Off with your head!

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"Aaaah! Emotions are weird!" - Amdee
"... Mirrorshades prevent the forces of normalcy from realizing that one is crazed and possibly dangerous. They are the symbol of the sun-staring visionary, the biker, the rocker, the policeman, and similar outlaws." - Bruce Sterling, preface to Mirrorshades

Maybe he’s feeling benevolent to his fellow men and wants to celebrate the birth of his new child with a month long feast for his people.

I suppose it really depends on if there is something in the contract saying that the corporate office can't set prices(which, by reading this, seems they can't). If they can, these guys will have to suck it up. If they can't, then they have a case and should be allowed to charge whatever. However, I read this:



That sounds like they still have a boost in revenue regardless of it not being as high as they expected due to the loss on this one menu item...so wouldn't it still be a good idea? The boost is only half of what they expected, but it is still a boost. Or am I not reading that right?

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Los Angeles Kings 2014 Stanley Cup Champions

"I love this **** team right here."
-Jonathan Quick

I believe one of the things these chain stores have to agree to is national pricing. This is usually down to minimise competition between their own stores and to ensure an easier collective marketing strategy

It's a little more complicated because some existing customers will trade down. To simplify it greatly, suppose you can sell 100 burgers for 10 cents of profit each. For every penny you reduce your prices you sell 5 more burgers. Sell one hundred and you make a 10 bucks. Sell 105 and you've only made $9.45

Now, that assumes a linear relationship, and in food sales it isn't. Also that doesn't account for the fact that the franchisee is losing money on the double cheeseburger. So you have 100 people who usually come in for the burger that makes you 10 cents. Now you have a burger that costs you a penny. Your orders increase by 40%, but half your customers order the cheaper burger (remember, the reason many existing costomers ordered the more expensive burger is because the cheap one wasn't available). You sell 70 burgers for $7 profit and 70 more for -$0.70 cents. Your promotion just cost you $3.15.

See what happens when you try to be nice? I'm tellin ya, the headsman is gonna be busy pretty soon.

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"It is true that democracy undermines freedom when voters believe they can live off of others' productivity, when they modify the commandment: 'Thou shalt not steal, except by majority vote.' The politics of plunder is no doubt destructive of both morality and the division of labor."

I think the bolded part here is all that needs to be said. You may be a franchise, but your business needs to be a representation of the entire company. So get in line with the uniform features.. notice they said nothing about the 2 whoppers for 3.50 thing they did a few months ago..

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Darksiege
Traveller, Calé, Whisperer
Lead me not into temptation; for I know a shortcut

Yeah. If it's in the contract, they have no room to complain. They'll either close up or suck it up.

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Los Angeles Kings 2014 Stanley Cup Champions

"I love this **** team right here."
-Jonathan Quick

Man, you guys are makin' me want to dine with the King.. unfortunately, all of the BK's within 20 miles of where I live were franchised by the same guy...and they all just closed one day (I miss their breakfast stuff the most).

Anyway, I think my Doctor had them all closed to prevent me from eating there...

/shakes fist!

Sounds like a business opportunity Midgen.

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"Dress cops up as soldiers, give them military equipment, train them in military tactics, tell them they’re fighting a ‘war,’ and the consequences are predictable." —Radley Balko

Actually, he did. He's very good about that you know!

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"Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own." Jesus of Nazareth

Those lowly BK employees clearly don't know they are in the prescense of royalty. Even when I was a 15 year old, rebellious trouble-maker messing with people in the Drive Thru on my mic, I would know to heed to such distinguished guest.

Put them in the stalks!

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"It's real, grew up in trife life, the times of white lines
The hype vice, murderous nighttimes and knife fights invite crimes" - Nasir Jones

Stocks, you mean?

Although, I'm imagining a torture/humiliation device constructed out of a web of corn-stalks, now.

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"Aaaah! Emotions are weird!" - Amdee
"... Mirrorshades prevent the forces of normalcy from realizing that one is crazed and possibly dangerous. They are the symbol of the sun-staring visionary, the biker, the rocker, the policeman, and similar outlaws." - Bruce Sterling, preface to Mirrorshades

ROFLMAO!!!!

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"Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own." Jesus of Nazareth