Posted on 04/11/2012 7:33:47 PM PDT by MinorityRepublican
Weaker sales following the recession are prompting many big fast-food chains to adopt leaner business models by unloading company-owned outlets to franchisees.
The latest example is Burger King Holdings Inc., which is in the midst of a turnaround and counting on a bigger appetite for restaurant ownership among people like Vince Eupierre of Corona, Calif.
Associated Press Burger King restaurants, such as this one in Miami, have revamped their menu as part of the company's turnaround effort. The chain is unloading many company-owned outlets to franchisees. . Mr. Eupierre, a 71-year-old immigrant from Cuba, bought his first Burger King franchise in the late 1970s, after working nights as a Burger King assistant store manager. Today, he owns 34 Burger King franchises in Southern California employing 2,500 workers, including part-timers.
His sales are down by about 25% from three years ago, and he recently spent $1.3 million to comply with the chain's revamped menu, on items like smoothie stations and new freezers.
"If you ask me, 'Will you buy another store today?' I'd say, let's wait a little bit and see what happens in the next 60 to 90 days," he says.
(Excerpt) Read more at online.wsj.com ...
Need more pink slime?
It’s funny two blocks from my house there is a Burger King across the street from an In-N-Out. The In-N-Out is constantly buys while Burger King is constantly empty. The economy is not the reason why Wendy’s is selling more burgers than BK. The problem with BK is BK, not the economy. It’s never a good example to use a poorly run company to show how tough it is.
I’m 4 blocks away from Chick-Fil-A’s and 2 blocks beyond that is In N Out. Add another 2 is BK. Both Chick’ and In N Out pack em in day and night but BK has the ambiance of a DU forum. Lots of wackos and negativity is in the air. Same goes for Jack in the Box which I love as take out but would never eat there due to the company..
Like many fast food franchise, after a while the size and quality of their offerings begins to suffer because of the bottom line need to increase profits.
Wendy’s is a great example. Once one of the greatest hamburgers in the known world, now just another small overcooked burger.
Has the recession ended? I still see "for sale" and "available" signs on every block, businesses are still going under, and people are buying groceries with food stamps.
Bk just started running commercials about their new foods and smoothies and they are using David Beckham and Jay Leno in their new commercials which turns me off. I wonder how much they are spending for the marketing campaign.
That could be due to several factors, but the cost of typical fast food meals has increased significantly in recent years. Most combo meals used to range from $3.00 to $5.00, and now many are $6.00, $7.00 and a few even more.
A local Hardee's that had been successful for about fifteen years closed a couple of years after they 'upgraded' their menu with price changes almost as much I mentioned above. Fast food meals just aren't as attractive at the higher prices, which jumped up in only a few years.
If BK had those burgers on the menu, we might go. Two would feed us all (1 for the wife and I plus 5 kids and one for our he-man weightlifter 20-yr-old.)
It’s ok like most they will regulate themselves right out of buisness just like my old company did !
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