Thursday, November 12, 2009

2300: Burger King Blow Up

Yesterday in class we talked about companies that practice great internal PR. Today when I opened up my internet browser, I found a company that may needs some lessons. Burger King franchises sued the company over the new $1 double cheeseburger promotion. Different restaurants say they are experiencing a ten cent loss with each sale. Executives came out with the new promotion with hopes to get more people to eat at Burger King, thereby minimizing the loss. The National Franchise Association, a group that represents over 80 percent of Burger King’s franchise owners says the loss is too much. The spokesperson for Burger King says the litigation against them is “without merit.”

Obviously, there is a lack of communication between the employees and executives in this company. From a public relations standpoint, I want to know how long this battle has been happening. Has the National Franchise Association tried to compromise with the executives? Was this a last resort? I don’t understand why the executives wouldn’t want to listen or maybe try to understand the situation before it turned into a legal battle. I want to know what else is behind the story. Pennsylvania franchise owner Steve Lewis said, “"The current management team has disregarded rights that Burger King franchises have always had.” What is different? I am going to follow this and see what happens. Things don’t look good. The lawsuit was filed Tuesday in U.S. District Court in Southern Florida, and Burger King stock shares fell 18 cents to close at $17.12 Thursday. Click here to read the full story.

Here is a link to the story:

1 comment:

  1. This is something new, have never heard something like this about Burger King before.

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