August 1, 2008
Late hours Cause Heartburn for BK FRanchisees!
Analysis of:
Burger KIng Franchisees Sue Over late Hours | www.miamiherald.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Burger King Franchisees face internal cost pressures and profit erosion at a critical time.On top of commodity increases and declining sales patterns, BKC mandate could drive several franchises into BK.BKC show indifference to profit and survival of their franchisees.
Analysis:
Analysis:
Speaking with several Burger King franchisees around the country, it is obvious that this is a widespread, not a local, regional, or isolated issue.
It is likely that the issue will lead to class action suit if BKC does not modify its position.
BK franchisees around the country are facing cost pressures from higher commodity cost and higher labor costs: this internal threat could not have come at a worse time.
Aside from the very real financial impact, the damage and fallout to the franchisor/franchisee relationship could be long-lasting and derail recent improvements in system-wide improvements.
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