Food Fight: Burger King Franchisees Sue

$1 Double Cheeseburger Promotion Forcing Restaurant Owners to Lose Money, Lawsuit Says

(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 at a loss.

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.

[msimamaji]

Cheesburgers are loaded with cholesterol. Red meat is a known carcinogen. Our addiction to hamburgers cause obesity, diabetes, heart disease, and prostate cancer, to name a few expensive illnesses. Hamburgers and soft drinks are two reasons our medical bills are so high. Perhaps we the public should sue Burger King for damages to our health care system.

[retm-w]

I've been eating burgers and drinking Coke or Pepsi for over 40 years, and don't have any of the problems you listed.