Burger King is cutting costs by eliminating one slice of cheese from it’s “BK Dollar Double” one dollar cheeseburger. Although it may make a minuscule impact on the consumer, the savings to the restaurant chain could be as much as 2 cents per burger or a total of 2% of the gross revenue from that particular sandwich.

This move is sure to go over big with franchise owners as they were less than thrilled when corporate decided that the price for the burger should be only 1 dollar. The price has since increased to 1.19 making it more palatable to the owners of this well know fast food restaurant uses the dollar menu to drive in traffic even though it hurts their profits.

Although the concept of the loss leader to generate activity is not new, in this economy the profits are even tighter because the dollar menu items are all the rage with those affected by job losses and job cuts. With an increase in the percentage of dollar menu items sold, Burger King had to look at ways to to keep the franchises profitable and the slice of cheese being removed was one of them.

Burger King is also promising to add more items to the dollar menu which could include new items altogether and perhaps some items that would actually be profitable. Expect to see the change in the cheese volume April 26th of this year.

There are talks that BK will also remove the Whopper Jr from the dollar menu as well as that is also an under performing item in terms of profit margin.

This entry was posted on Thursday, February 18th, 2010 at 10:31 am and is filed under US Business News, World Business. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.