Monday, March 08, 2010

Hey Burger King, Where's Herb?

Comparable same store sales at Burger King (BKC-$17.90) operations in North America (more than 7,500 stores) declined three percent versus a year ago.

Consumers are eating out less in this economy — and when dining out they are choosing less expensive restaurants. With the price-value proposition shifting to the value side, Burger King needs to figure out how to retain customers — and their loyalty – in an industry dominated by burger pricing wars.

Patrons at a BK restaurant in Concord, NH, keep coming back for more – as much for a singing server as the food. Of course, such an inexpensive loyalty program makes no sense to management: and Chuck Murphree was told to do it management’s way – no more singing.

Maybe management would prefer another "Where's Herb?" disaster (circa 1985)?
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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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