BK and Inflation

I just read an article on the effect that the current inflation pressure is having on business and was saddened to find out that Burger King just last week had decided to raise its price of the Double Cheeseburger from $1.00 to $1.19 AND to remove a slice of cheese from the Double Cheeseburger currently on its dollar menu and change the name of this wonderful burger to the BK Dollar Double.

We saw an increase in producer prices but no growth in consumer prices (www.bls.gov). The dilemma corporations have to deal with. Producers need to do something to make up for their increase in prices. Some may be having a tough time passing the increase onto the consumer but what’s the alternative? Eat the cost or make the product smaller? With prices going up and demand going down businesses like Burger King are being forced to make their products smaller and raise their prices. In a healthier economy they’d just raise their prices and move on. Now if you want that Double Cheeseburger with two slices of cheese you’ll have to pay an additional $.19 or opt for the one with less cheese. Is that a good thing or a bad thing…I don’t know you decide. The thing is it’s not just Burger King. I’m seeing it all over my local area. I’m sure Burger King will be around tomorrow, but some of the smaller restaurants will not fare so well. Restaurant operators can lose money on some items but when the costs of even those items go up the problem is just exacerbated. With the unemployment rate at almost 10% (really its closer to 17%) it makes it tough for everyone.

So, if you still want a $1.00 double cheeseburger with two slices of cheese you’ve got until April 26th. That’s when the price increase is to take effect. Actually you may see it go away all together since they been getting their butt kicked by McDonalds and are in the middle of a class action lawsuit filed by the franchises over this very burger.