The Reason Burger King Is So Cheap
Burger King is a lot of things. Some might say it's better than McDonald's, while others may say it's inferior, but the one thing everyone can agree on is that Burger King is cheap. You're not going to break your wallet buying a Whopper, and Burger King isn't afraid to show off just how much food you can get for so little money.
Indeed, in this time when Americans strive to make every penny count, Burger King finds itself walking a line between protecting its profit margins and appealing to hungry customers. Chew boom tells us that Burger King offers a "Choose a Meal Deal," where one can choose between a Whopper and a chicken sandwich to go with an order of fries and a drink for $5.99. This deal is an offshoot of the chain's "Pick 2 Meal Deal," which basically gives you two sandwiches, two fries, and two drinks for the doubled price of $11.98. Another example of Burger King modifying a value deal is its "$5 Your Way Deal," which went up to $6 in exchange for allowing customers to choose between a Rodeo Double Cheeseburger or Bacon Double Cheeseburger (via Brand Eating). While these deals may be slightly more expensive, you still get a decent amount of food for what you pay.
But just how does Burger King stay so cheap anyway, especially in these hard times? Just what is the King's secret to royal thrift?
Burger King buys in bulk
Whenever you go to Sam's Club or Costco, you may know that it's sometimes cheaper to buy in bulk than it is to buy individual items at your local grocery store. Burger King also knows the value of buying in bulk, which helps to keep its prices low. But just how exactly does buying bulk keep the cost of your order so low?
Burger King is able to buy in bulk thanks to its ability to buy wholesale products directly from the supplier, such as McLane Foodservice (via Meat+Poultry). This means that, if Burger King wants to buy beef, it can go straight to the supplier and buy it directly from them, avoiding the fees and costs of a middleman to do it for them. When you deal directly with the supplier, and you're a giant company like Burger King, you can also negotiate the price. The supplier would offer the chain deeply discounted products (lowering the prices even further). Buying in bulk isn't a Burger King trade secret. McDonald's also purchases in bulk from direct suppliers in a very similar way.
Of course, some may wonder just how high-quality the ingredients Burger King purchases are, considering their low price tag. Burger King assures customers, however, that everything from its burgers to its chicken is nothing less than 100% real.
Burger King can upsell to keep prices low
Now, if you're thinking that we're going to tell you Burger King openly swindles you out of your money by scamming you or messing with your head, you'd be mistaken. Burger King, like any savvy business, knows when to make an upsell and when to sell at a markup. Every business does this to gain a net profit, so it's not that Burger King is trying to be shady or cheat you.
For example, you could head into your local Burger King and ask for a cheeseburger, medium fry, and shake. The cashier will ask if you want extra cheese on your burger since it's only 50 cents or so more. Seeing that it's just a few cents extra for some more cheese, you agree. Just this minor transaction alone is a large part of how Burger King can keep its prices low. According to Inc., Burger King enjoys a 240% profit thanks to its markup of cheese. A slice of cheese may cost 15 cents, but Burger King charges 50 cents. By up charging small, usually unremarkable items such as cheese, extra toppings, or even asking to upgrade your fries, Burger King is able to make up the profit it loses selling its food so cheap.