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PRESSREELS

‘We Screwed Up’; Burger King Mistake Costs Franchise Millions

Dan Micheals by Dan Micheals
Nov 11, 2019, 7:00pm
in CELEB
Reading Time: 5 mins read
A A

The largest operator with over a thousand of Burger King branches gave their customers more than expected during the summer. 

Carrols Restaurant Group may be big, but $12 million dollars could still be a huge loss for them especially when it no one must blame but themselves. 

The decline of $12.4 million in revenue and net loss of $8.2 million is not a laughing matter to this giant. 

They have given bigger discounts to their customers than expected, prompting them to lose a lot from their sales. 

When did the burger joint accounting mistake happen?

Customers may have remembered the days when they felt they really got the most from their money. From that mistake, they had almost 3% reduction as opposed to their expected strong quarter.

The CEO Dan Accordino confirmed “It was not an accounting issue. It was not a systems issue. It was a mistake. We screwed up and it cost us a fair amount of money. 

This problem was discovered late August when they made a quarter report and found out that the growth was unusual for the Carrols. This normally exceed BK thus leading them to do some financial investigation. “We screwed up, and it cost us a fair amount of money.” 

It was later found out that it was “convoluted” thus giving customers more discount on their value meal orders.

What Burger King promo was that?

The promo was $4 for a two Whopper Jr., $5 for two Whopper and $6 for two double Whopper. They were encouraging customers to get the offer with their value meal. In this case, the customers would have then to pay for the regular prices of the fries and drinks. That cost the this joint $.150 for every sale they made.

“We spent a lot of time dealing with this convoluted mistake. The fact of the matter is, it was a mistake. We screed up. The underlying business is stringer that what our numbers reflect. This should be called a “one-time” error.

If this mistake wouldn’t have happened, the group’s sales would have risen by 7.4% already. Fortunately, they introduced their plant based Impossible whopper and gained a lot of sales. 

This was introduced to the market in the late days of August. 

The promo discount didn’t get as much traffic because of that.  

On the other hand, this mistake started in early June until late August and still costed a significant amount for the Carrols.

Along with this, the company’s overall profits hit a 10.7 low because of some other factors like increasing beef costs, higher staff wages and some recent acquisition of restaurants thus staff training is integrated as well.

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Carrol’s stock went up and down as well. This doesn’t just affect the group but for the BK as a whole. The Carrols group owns 14% of this big fast-food joint. Overall, BK operates more than 7,300 branches in the United States alone. 

Carrol’s numbers have now gone up after that mistake in August. It has been corrected and now earned a 7.9 gain in September.

Read more: McDonald’s CEO Fired for Employee-Employer Relationship

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Dan Micheals

Dan Micheals

Dan is a software developer with experience in designing, development, and delivery of Android apps. His key skills include knowledge of Core Java, JSON & XML Parsing. He's also a keyboardist. So, either you’ll find him at her desk busy in building mobile apps or at a composing music in his home studio. He contributes his ideas on tech at PressReels as an author. You can contact him at Danreels@gmail.com

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