MIAMI -- A new move by Burger King Corp. could ignite a fast-food discounting war. The fast-food chain plans to test a $1 double cheeseburger that would challenge one of McDonald's Corp.'s best-selling items.
"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," a note emailed to Burger King employees and franchisees from the company's chief marketing officer said in disclosing the test, according to a report in the Wall [image-nocss] Street Journal.
The nation's No. 2 hamburger chain, in terms of sales and number of restaurants, said it will feature a larger double cheeseburger than McDonald's at a heavily discounted rate in three unidentified U.S. markets early next year.
Burger King, owned by Burger King Holdings Inc. of Miami, normally charges more than $2 for that sandwich. At times the price is a few cents less than the brand's flagship Whopper.
At most Burger Kings, a single-patty Junior Whopper is the lone hamburger on the Value Menu. But some Los Angeles-area Burger Kings said they have been selling double cheeseburgers for 99 cents for several weeks. Franchisees generally are allowed to set their own prices, reflecting market conditions.
McDonald's double cheeseburger has headlined the Oak Brook, Ill., fast-food company's Dollar Menu for years and is considered a major attraction, particularly among bargain hunters.
While risking a repeat of costly burger battles in 2000 and 2003 that hurt many industry players, Burger King apparently believes it has little choice but to challenge McDonald's.
"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," the message from Russ Klein, global marketing, strategy and innovation president, said.
Meanwhile, the Subway sandwich chain is testing recycling bins, switching its napkins, cutlery and plastic cups and cutting down on the gasoline used to transport its restaurant supplies in an effort to minimize the chain's impact on the environment.
If Subway's new recycling bins are successful, other chains could add them, too, according to a separate Journal report.
The nation's largest restaurant chains have made scant progress in offering recycling for customers. No other major fast-food chain, including McDonald's Corp., Burger King Corp., Yum Brands Inc.'s KFC and Taco Bell and Wendy's International Inc., has recycling bins for customer trash at its restaurants in the United States. Starbucks Corp. has recycling bins at some cafes on the East Coast, but they don't accept the chain's paper coffee cups because those can't be recycled, according to the coffee company.
Restaurants said they haven't installed recycling bins for customers because wrappers, napkins, cups and other packaging that is soiled with food is difficult, and in some cases impossible, to recycle. McDonald's said most cities won't accept recycled material with food on it. Some food-tainted packaging can be recycled, but it is expensive to do, Susan Daywitt, chief executive of SLM Waste & Recycling Services Inc. in Sellersville, Pa., told the newspaper. SLM helped Subway create its recycling program.
Subway officials said when they first began looking into customer recycling, they were surprised by how difficult it is. One problem is that the regulations governing recycling vary by city. "It's not an easy job to tackle when you're looking at a chain this big," said Tina Fitzgerald, director of produce and sustainability for Subway's purchasing co-operative.
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