John Gordon

Burger King: $1 Double Cheeseburger May Change the Game

Burger King will have to model it, test it, promote it, in a meaningful way, and get support from their franchisee marketing council, to do this right.

McDonald's has plowed this ground last year.

Franchisees don't have the same resources that the company does, and are much more margin oriented.

We doubt this is a game changer...but it could be a popular menu item. PS, the picture attached with the FT post is not at all representative of what the menu item could be.

John A. Gordon
pacificmanagementconsu...

Chain Restaurant Earnings and Economics Experts

Same-Store Sales: Drugstores, Supermarkets, Fast Food Weathering Recession

Marketing Charts presents a nice article, but the limitations of the use of same store sales as a metric must be noted.

Both retailers and restaurant operators have core underlying inflation, of raw product for resale costs, labor, and other operating expenses. Therefore same store sales must be more than a little postive to cover these inflationary factors.

Additionally, same store sales at minimum is the sum of three components: price, mix and volume influences. Retailers raise prices (when they can) and same store sales should go up by some like amount. All three same store sales components should be noted in analysis.

John A. Gordon
Pacific Management Consulting Group
jgordon@pacificmanagem...
pacificmanagementconsu...

An analytically focused restaurant management consultancy

Raw Data Report: Fast Food Restaurants

Interesting survey data, but not written by an expert. Anecdotial, customer level input.

CKE no longer owns LaSalsa, it was purchased by a private equity group in 2006/2007.

If you need more detailed restaurant analysis, contact us at pacificmanagmentconsul..., 619 379-5561, restaurant economics experts.