Burger King Sued Over $1 Cheeseburgers?

I just saw this post at the Diet-Blog claiming that Burger King franchisees are suing the headquarters for forcing them to sell double cheeseburgers in a promotion that has them selling at a loss.

Apparently they will lose ten cents on each burger, while Burger King corporate believes that this will drive up patronage by %20, meaning more sales to cover the loss.

I'm torn here, perhaps because our local Burger King has rarely managed to even get our orders right to begin with. My family is still very big on fast food and we'd probably go there far more often if that place could actually get one @#% order correct. As it stands it's good exercise because we go to the drive through and end up having to walk in to get what was forgotten, missed, or given to us by mistake. To my recollection it's the only restaurant in the area we've ever actually called and complained about to headquarters...so part of me thinks that if the restaurant offered a better experience, they wouldn't need to rely on the give away the razor to sell the blades loss-leader sales gimmick. Oh, and there's the creepy King mascot, too. That can't help much for sales when kids have nightmares about the face of your product.

But that's my opinion.

I can see the corporate headquarter's gamble here. Lure customers in, hope they have a good experience and bring friends or come back more often. Kids can come hang out and keep buying stuff like soda and french fries which are crazy profit drivers.

Franchisees are probably scraping by in the tougher economy. They don't want to risk something that cuts into thin profit margins (I'm guessing, since I do know that the soda and I'm guessing fries are big profit, while other things aren't so much). If attendance is down then this is a risky gamble for them.

On the third hand I rarely see fast food as being good for you at all, and don't really weep when people can't get their grease and sodium fix. If people just aren't interested in your product and you fail to deliver a good experience, like our local BK consistently has done to us, then you quite frankly deserve to fail and drive what little loyal patrons you have to give their money to other, better businesses.

Burger King is still a large corporation that will no doubt find equilibrium before they sink. While the recent events with the economy have proven that no one is too big to fail, it also highlights that corporate scum will continue to make due, given the number of businesses that have laid off and fired workers or have been driven into near (or total) bankruptcy while at the same time giving their CEO's millions of dollars in bonuses. If the King goes bankrupt or closes some restaurants down, then the market has spoken and we'll have a small rise in the number of teens without slacker jobs for awhile, until someone else takes up the slack with a restaurant of their own (or a new franchise opens up). If not then this is just going to be another blip on the radar for people who care about this sort of thing.