The Power of Retail

Burger King could be starting a price war with its plans of a $1 double cheeseburger, which will be a challenge to McDonalds best selling item. According to the chief marketing officer for Burger King, “It is our belief that the dollar double cheeseburger is the most powerful weapon our competitor has to continue their growth and steal disproportionate share from the category.” Burger King is the country’s second largest burger chain and will be unveiling its $1 double cheeseburger in three US locations at the beginning of 2008.

At present a double cheeseburger costs more than $2, with prices very close to its flagship item the Whopper. While most Burger Kings have only the junior Whopper on their value menu, some franchises in the Los Angeles area have been charging 99cents for double cheeseburgers. According to Russ Klein, president for global marketing, strategy and innovation, “The fact remains that we are still at a double-digit disadvantage to McDonald’s and Wendy’s in ‘Best Value for the Money’ ratings.”

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