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Burger King Ramping Up Dollar Burger Price War

Burger King seems willing to further irritate some of its vocal franchisees, Mike Hughlett reports, as it will begin a nationwide promotion for its $1 double cheeseburger beginning Oct. 19.

Last month, it cut the price on its double cheeseburger, which normally costs at least $2, to $1 in 40 markets, rankling some franchise owners who fear a nobody-wins price war.

"It's obviously something of considerable concern to the franchise community," says John McNelis, president of the real estate division of Mirabile Investment Corp., which owns more than 40 Burger Kings in the Memphis, Tenn., area.

"The burger war is in full tilt, there's no doubt about it," says Dick Adams, a consultant to McDonald's franchisees. That can be as dangerous for the chains as it is beneficial for consumers. A price war that broke out earlier this decade led to crimped profit margins and unhappy shareholders at both McDonald's and BK. This time, the Carl's Jr. and Hardee's chains are also in the fray.



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