Industry News | November 25, 2002

Every Action Causes A Reaction

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In an ongoing exchange of menu price changes, Burger King Corporation announced last week it was lowering the price of its double cheeseburger to 99 cents.

Upset over McDonald’s discounting two premium sandwiches, Big n Tasty and Crispy Chicken, and reeling from lost market share over the past two months, Burger King responded with the latest in discounting efforts.

It all started several months ago when Burger King announced a new 99 cent value menu. McDonald’s hastily responded a month later with its own dollar value menu which included the two premium sandwiches. Burger King was unhappy about McDonald’s move to discount big items, accusing McDonald’s of a “senseless” price war.

In addition to the double cheeseburger, Burger King franchisees have been presented with a plan to discount the flagship Whopper to 99 cents in January. Such a move would likely hurt already ailing Burger King franchisees, many of which have expressed opposition to such an extreme measure.