• Miami Herald, Seattle Times, Wednesday, February 17, 2010 10:39 AM

Burger King will try to make peace with its bottom-line oriented franchisees by replacing its $1 double cheeseburger deal with a different sandwich that contains one less slice of cheese, Elaine Walker reports. In another move to improve profit margins, it will also begin testing a higher price for the Whopper Jr., raising its cost by nine to 19 cents from $1.

"For Burger King, it's about finding a combination of new menu items that scream value to the consumer," says Telsey Advisory Group analyst Tom Forte. "And for the franchisees, it's about having other items that can offset that impact on margins."

Burger King also announced yesterday that it would sell Starbucks' Seattle's Best Coffee drinks at 7,250 Burger King shops nationwide by September, Melissa Allison reports in the Seattle Times. The fresh-brewed premium coffee will replace BK Joe. The alliance represents a strategy shift for Starbucks, which has mostly steered away from fast food.

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