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View Full Version : Burger King Sued Over Value Menu



Thommy Melanson
03-09-2008, 08:06 AM
By DAVID B. CARUSO,AP

NEW YORK (March 5) - A family that owned several failed Burger Kings is suing the fast food giant, claiming the company's $1 value menu made it impossible for them to turn a profit in high-priced Manhattan.

Franchise owners Elizabeth and Luan Sadik say in a federal lawsuit filed last month in Brooklyn that they begged Burger King for permission to raise prices at their Midtown restaurants so they could cover their high costs.

One of their eateries near Grand Central Terminal was paying $18,000 per month in rent, an amount they said they couldn't cover selling hamburgers for $1.

Burger King said no, and when the family closed two unprofitable Manhattan restaurants in response, the company took legal action to shut down two of their remaining New York eateries. The last one closed six weeks ago.

Now, the sister and brother team is suing to force Burger King to cover some of the costs of the failed business.

A spokesman for Burger King Holdings Inc., Keva Silversmith, said Wednesday that the family's claim was unfounded.

"We have no evidence that the value menu has hurt restaurant profitability," he said. On the contrary, he said, internal studies have shown the promotions to boost store profitability.

A lawyer for the Sadiks, Richard Gallucci, said the family wouldn't have been in this mess if it wasn't for the value menu. Other Burger Kings in high-rent locations, like airports, have been granted an exemption from the promotion.

Gallucci acknowledged that the menus may work well in some less-expensive cities, but he insisted that the option is unrealistic in a city where it is hard to buy a turkey sandwich for under $5.


http://www.aolcdn.com/aolnews_photos/0b/00/20080305170109990002
Franchise owners Elizabeth and Luan Sadik pose for a portrait inside one of their recently closed Burger King restaurants. The brother and sister team is suing the fast food giant, claiming that its $1 value menu made it impossible for them to turn a profit.

Copyright 2008 The Associated Press.

R0cketFr0g
03-09-2008, 08:08 AM
I'll buy that for a dollar!

ClintP
03-09-2008, 08:09 AM
Why on Earth would it be BK's fault if you don't realize what you can make before buying a franchise? Morons...

ClintP
03-09-2008, 08:10 AM
Also, the only reason I go to some of the big chain fast food joints is because of the dollar menu. If I wanted to pay $6 or so, I would go to a home owned joint with real meat. :lol:

FredC
03-09-2008, 08:11 AM
Also, the only reason I go to some of the big chain fast food joints is because of the dollar menu. If I wanted to pay $6 or so, I would go to a home owned joint with real meat. :lol:

Exactly!

I don't really like Burger King though.

It's Wendy's for me, all the way.

Thommy Melanson
03-09-2008, 08:11 AM
Why on Earth would it be BK's fault if you don't realize what you can make before buying a franchise? Morons...

They probably owned their franchises long before the dollar menu was introduced.

ClintP
03-09-2008, 08:21 AM
They probably owned their franchises long before the dollar menu was introduced.

When did it get introduced? I have been to plenty of franchises where the prices were higher and the menu slightly differed.

ClintP
03-09-2008, 08:22 AM
Also, BK's food sucks. I bet that had something to with not being profitable. ;)

Thommy Melanson
03-09-2008, 08:28 AM
When did it get introduced? I have been to plenty of franchises where the prices were higher and the menu slightly differed.

The dollar menus have been around for a few years now, but I can see their point when their cheapest sandwich probably went from $3.50 to .99c.

Fast food places have installed the dollar menus thinking that they'll make up in volume what they lose in price, but that must not be the case with this folks.

Pat Loika
03-09-2008, 08:28 AM
They probably owned their franchises long before the dollar menu was introduced.

Not to mention the fact that the economy just went to shit recently.

AAlgar
03-09-2008, 08:29 AM
Also, the only reason I go to some of the big chain fast food joints is because of the dollar menu. If I wanted to pay $6 or so, I would go to a home owned joint with real meat. :lol:

In NYC? Unlikely.

Thommy Melanson
03-09-2008, 08:30 AM
Not to mention the fact that the economy just went to shit recently.

Yeah, and the societal shift toward healthier eating.

Frozen Sooner
03-09-2008, 09:27 AM
When did it get introduced? I have been to plenty of franchises where the prices were higher and the menu slightly differed.

One of my friends owns several Burger King restaurants. Their corporate does not allow menu variations except by special permission and menu prices are set by corporate, not the local franchise.

He bitches about the value menu a lot as well.

RyanP
03-09-2008, 09:52 AM
Yeah, and the societal shift toward healthier eating.

I'd say that's the main reason right there.

Nick Spencer
03-09-2008, 10:00 AM
Also, the only reason I go to some of the big chain fast food joints is because of the dollar menu. If I wanted to pay $6 or so, I would go to a home owned joint with real meat. :lol:

In NYC, you better go ahead and double that number.

If there's one adjustment that's been hard for me to make up here, it's the increased cost of food and drinks.

Thommy Melanson
03-09-2008, 10:06 AM
In NYC, you better go ahead and double that number.

If there's one adjustment that's been hard for me to make up here, it's the increased cost of food and drinks.

Rent, of course, ain't no joke.

The thought of paying $2500 a month for a cramped efficiency actually physically hurts.

Jason California
03-09-2008, 10:07 AM
Yeah, and the societal shift toward healthier eating.


But that has nothing to do with the price of the value menu.

Thommy Melanson
03-09-2008, 10:09 AM
But that has nothing to do with the price of the value menu.

But it has everything to do with the amount of customers.

(akaRyanHoffman)
03-09-2008, 10:19 AM
Yeah, and the societal shift toward healthier eating.

Oh, I'd think a lot of people would like you to believe that's true, but that's mostly bullshit. People aren't really eating healthier.

Nick Spencer
03-09-2008, 10:28 AM
Rent, of course, ain't no joke.

The thought of paying $2500 a month for a cramped efficiency actually physically hurts.

But I'm used to the fact that rent fluctuates by city. This is the first time I've ever been in a place where food seems to cost about 30 percent more than everywhere else. Stops me in my tracks everytime, just because I can't shake the instinctual 'dinner costs 7 bucks'.

And trips to the Grocery are NOT fun.

Nick Spencer
03-09-2008, 10:29 AM
Oh, I'd think a lot of people would like you to believe that's true, but that's mostly bullshit. People aren't really eating healthier.

People in higher income brackets and with more education most certainly are. But poor people are eating even worse.

Ryudo
03-09-2008, 10:38 AM
Having worked in a BK before, I can say that you pretty much get what you pay for, in terms of their value menu shit.

Their problem didn't come from the dollar menu, though. You buy stuff like that in bulk, obviously... they would have had to go through several cases (meaning several hundreds of Whopper Jrs or whatever) in order to see any substantial gain or loss.

Jason California
03-09-2008, 10:43 AM
But it has everything to do with the amount of customers.


Sure, but I really don't think these places are getting the much of a lower turn out.

I really had no problem with what BK did until they shut the other stores these people owned as a result. That seems petty to me. It is their right, but I think it makes no sense.