Burger King. (Photo by: Houin/BSIP/Universal Images Group via Getty Images)
The Reason Burger King Is
So Cheap
By Chase Shustack
Everyone can agree that Burger King is cheap, and they aren’t afraid to show off just how much food you can get for so little money. 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, and there’s a secret to this royal thrift.
Burger King knows the value of buying in bulk, which helps to keep its prices low, and thanks to the ability to purchase wholesale products directly from the supplier, they avoid the fees and costs of a middleman to do it for them. When you deal directly with the supplier, you can also negotiate the price, and the supplier can offer deeply discounted products.
Also, like any savvy business, Burger King knows when to make an upsell and when to sell at a markup to keep prices low. By up charging small, usually unremarkable items such as cheese, extra toppings, or even asking to upgrade your fries, Burger King can make up the profit it loses by selling its food so cheap.