• Ad Age , Monday, August 11, 2008 10:30 AM

Burger King is pushing its extended hours with a splashy ad campaign directed by Spike Lee and starring Sean Combs, but some franchisees are in open revolt over the mandate to stay open until 2 a.m. Three Miami operators filed a lawsuit that alleges that the extended hours don't make money and overtax the work force.

Although the suit encompasses only 57 locations, it has drawn the support of the company's franchise association, which represents 5,000 of Burger King's 7,000 U.S. locations. "Nationwide, franchisees have advised our franchisor that serious safety, security and financial concerns surround the company's extended-hours initiative," says Joseph Anghelone, chairman of the National Franchise Association, in a statement.

The extended hours allow BK to compete effectively against its rivals, according to spokeswoman Denise Wilson. She says that "95% of our largest competitors' restaurants operate some form of extended hours, with 42% of their restaurants open 24 hours a day seven days a week." According to NPD Group, the 11 p.m. to 2 a.m. window accounts for 2.4% of traffic in the quick-service industry, up from 1.4% a year ago.

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