Sounds like a business opportunity Midgen.
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| Nitefox Unfair to Franchisees https://gladerebooted.net/viewtopic.php?f=2&t=826 |
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| Author: | Micheal [ Thu Nov 12, 2009 6:42 pm ] |
| Post subject: | Nitefox Unfair to Franchisees |
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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| Author: | Kaffis Mark V [ Thu Nov 12, 2009 7:11 pm ] |
| Post subject: | |
You question the King? What do you think this is, Burger President? Off with your head! |
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| Author: | Lydiaa [ Thu Nov 12, 2009 7:18 pm ] |
| Post subject: | |
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. |
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| Author: | Raltar [ Thu Nov 12, 2009 7:36 pm ] |
| Post subject: | |
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: Quote: 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. 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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| Author: | Lydiaa [ Thu Nov 12, 2009 7:53 pm ] |
| Post subject: | |
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 |
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| Author: | Taamar [ Thu Nov 12, 2009 9:24 pm ] |
| Post subject: | Re: |
Raltar wrote: 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? 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. |
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| Author: | Nitefox [ Thu Nov 12, 2009 9:45 pm ] |
| Post subject: | |
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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| Author: | darksiege [ Thu Nov 12, 2009 11:27 pm ] |
| Post subject: | Re: Nitefox Unfair to Franchisees |
Micheal wrote: 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. 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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| Author: | Raltar [ Fri Nov 13, 2009 2:48 am ] |
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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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| Author: | Midgen [ Fri Nov 13, 2009 3:36 am ] |
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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! |
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| Author: | Vindicarre [ Fri Nov 13, 2009 7:17 am ] |
| Post subject: | |
Sounds like a business opportunity Midgen.
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| Author: | LadyKate [ Fri Nov 13, 2009 9:43 am ] |
| Post subject: | Re: Nitefox Unfair to Franchisees |
Micheal wrote: Really Nitefox, the traditional way to deal with upstart gentry and minor nobility is to do a visitation. Actually, he did. He's very good about that you know!    
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| Author: | Rafael [ Fri Nov 13, 2009 10:15 am ] |
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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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| Author: | Kaffis Mark V [ Fri Nov 13, 2009 10:43 am ] |
| Post subject: | |
Stocks, you mean? Although, I'm imagining a torture/humiliation device constructed out of a web of corn-stalks, now. |
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| Author: | LadyKate [ Fri Nov 13, 2009 11:08 am ] |
| Post subject: | Re: |
Kaffis Mark V wrote: Stocks, you mean? Although, I'm imagining a torture/humiliation device constructed out of a web of corn-stalks, now. ROFLMAO!!!! 
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