Many people think Burger King has tasty food, but have you ever wondered why Burger King’s food is so cheap? If yes, let’s take a closer look at the reasons behind the affordable prices of Burger King’s menu items.
Burger King’s food is affordable for a few reasons.
- Burger King Buys Ingredients In Bulk
- Burger King Upsells Its Cheap Menu Items
- Burger King Only Sells Profitable Food Items
- They Provide Lucrative Sides
- Burger King Has Special Deals
- Gives Low Wages
In this blog, we will delve deeper into the top 6 reasons why Burger King food is cheap. By understanding Burger King’s cost-efficiency techniques and whether Burger King is good or not, we will learn how Burger King can sell menu items with a minimum price of $1.
6 Reasons Why Burger King Food Is So Cheap
Burger King’s ability to maintain cheap food prices results from various strategic approaches. There are many reasons why Burger King can offer affordable, fast food, which I will discuss in the upcoming section.
So, stay tuned until the end and know the reason for Burger King’s profitability.
Burger King Buys Cheap Ingredients In Bulk
Burger King buys cheap ingredients in bulk, which is one reason they can keep their food prices low.
By buying in bulk, Burger King can negotiate low prices with suppliers and wholesalers. Moreover, the fast food chain can also save on transportation costs, as it procures the shipment of ingredients in one go.
Furthermore, buying ingredients in advance allows Burger King to ensure they have the proper stock. This precautionary step helps them ensure they don’t run out of food items, which can lead to low sales.
For meat products, Burger King buys from their supplier McLane Foodservice Inc. This supplier offers beef and chicken at reasonable prices so that Burger King can save a lot of money by removing the mediators.Â
Also, Burger King often outsources a few ingredients from other countries due to the shortages of specific items in the US. In other cases, they find the best price for the ingredients. However, sourcing cheap ingredients from different countries has backfired on Burger King.
Burger King Upsells Its Cheap Menu Items
Burger King is known for its affordable menu items, but the chain is genius for upselling its customers small, inexpensive items. This strategy can have a lot of impact on Burger King’s business and increase average order value. I will tell you how the chain is cleverly playing with upselling.
One common business tactic that Burger King uses is suggestive selling. This is when cashiers recommend additional items to customers. For example, a cashier might ask customers if they want to add cheese to their burger. A slice of cheese costs just 15 cents for Burger King, but they charge 50 cents.
Apart from that, Burger King excels at selling inexpensive items with meals. A small order of fries is just over $1, but Burger King often recommends that customers upgrade to medium or large fries only for a few dollars. This way, they make around 40% of the profit. So, upselling small, inexpensive menu items is a smart business strategy for Burger King.
Burger King Only Sells Profitable Food Items
As a fast food company, Burger King aims to generate profit. The fast food chain carefully selects and sells menu items with a high-profit margin to achieve this. They carefully analyze the sales data, customer preferences, and production costs to determine which menu items contribute most to their profitability.
Burger King evaluates its menu offerings and strategically discontinues items that consistently fall short of meeting sales expectations. For example, Burger King discontinued Satisfries, a healthier alternative to traditional fries, due to disappointing sales performance.
Moreover, Burger King demonstrates adaptability by modifying the recipes to reduce ingredient costs without impacting taste or customer satisfaction. For example, they use less cheese in their burgers and optimize their meat supplies to lower production costs and increase profit.
Additionally, Burger King introduces limited-time offering menu items as a part of their marketing strategy. These menu items are tested in the market to gauge customer’s interest. Successful limited-time offers like Chicken Fries have also become part of Burger King’s permanent menu.
Apart from this, Burger King strategically uses discounts and promotions to boost sales of menu items. This allows Burger King to earn a good profit on premium items.
Provides Lucrative Sides
Burger King’s side menu offers a variety of options, including fries, onion rings, mozzarella sticks, French toast sticks, chicken tenders, and salads. This variety caters to a wide range of customers’ preferences and allows Burger King to profit from their lucrative side menu items.
The fast food chain prepares its side items in bulk, which keeps the cost per unit low. This is why side items like nuggets and mozzarella sticks often appear as cheap add-ons.
Moreover, these side items are easy to prepare quickly. It allows Burger King to serve them efficiently and generate high-profit margins.
Besides that, Burger King’s side menu items are low-priced, often enticing customers to purchase them. For example, the chain’s famous Whopper burger doesn’t come with cheese, but adding cheese costs an extra 50 cents. This may seem like a small amount, but it quickly adds up to the profit when considering the volume of whoppers sold.
In short, Burger King’s approach to providing lucrative sides includes a combination of bulk preparation of side menu items, a diverse menu, and strategic pricing. This ensures customer satisfaction and helps optimize profit from their side menu items.
Burger King Has Special Deals
Burger King has introduced special deals which are cost-saving for customers. However, the deals that entice the customers also contribute to the company’s revenue and profit.
Burger King’s value menu is a prime example to lure customers with affordable prices. Customers think they are saving money with the special deals but are buying additional items they may not have ordered before. Burger King creates a perception of value and attracts customers to spend more on the items.
Apart from that, Burger King recognizes the purchasing power of senior citizens and caters to them with special senior discounts. These discounts are often redeemed on total order value. This approach provides seniors with a sense of appreciation and makes them Burger King’s loyal customers.
Like seniors, Burger King also knows how to make the younger generation happy. It offers birthday rewards on its official app. For any BK member, the fast food chain gives freebies on their special day, like a free or plant-based Whopper.
Moreover, Burger King also brings you trending celebrity meals that are popular among customers. Their recent collaboration with Spiderman, Across The Spider-Verse, was in the news. They introduced Spiderman Meal for Spiderman fans.
Apart from that, BK also introduced COD MW2 (Call Of Duty: Modern Warfare 2) Meal, which was a hit after the new Call Of Duty game release. The meal attracted younger customers to buy it and enjoy it with friends. These collaborations boost sales and introduce the brand to a broader audience.
Regarding BK’s exclusive deals, Burger King’s 2 for $5 meal is the most famous. These deals offer one or more menu items for an excellent price to attract customers to purchase more. Similarly, you can also find Burger King’s $5 your way meal and $6 your way meal, which includes Burger King’s best-selling items at an attractive price.
Gives Low Wages
Burger King has always been criticized for its low wages to the employees. According to Glassdoor, the average hourly wage that Burger King pays is around $12.50. This is significantly lower than the national average of $15.50. They save a lot on wages, resulting in more profit for them.
Compared to other restaurants, Burger King’s wages are pretty low. For example, the average hourly pay for a McDonald’s employee is $14.22, whereas a Chipotle employee gets paid around $13.43. So, you can see that Burger King pays lower wages to its employees.
Now, let’s compare the annual salary of Burger King’s employees vs. the average wage in the USA. The average USA salary is around $56,473, and the average Burger King employee gets an estimated $28,000, below the average.
Moreover, the fast-food chain also saves much money on payroll processing fees. It pays the salaries of its employees on a Bi-weekly basis. Furthermore, it also saves much time by doing paperwork only twice a month rather than weekly.
Conclusion
Finally, we are at the end of this article. This blog taught us why Burger King food is so cheap. The fast food chain is an expert in its business game and has strategic pricing that helps it gain a good profit.
While Burger King’s food is generally affordable, it’s essential to consider the nutritional values of these meals.
Moreover, BK sells various breakfast options that are quick and perfect for the on-the-go. But these breakfast options contain high amounts of calories and fat, which does not qualify them as healthy.
While the chain’s breakfast choices may not be considered healthy, these breakfast options still taste good. It makes Burger King’s always the favorite place to dine in.
Apart from that, if you want to know why Burger King’s food is so expensive, you must read about their operational methods, labor expenses, and rising food costs. You can find detailed information about it on our blog.
Moreover, Burger King is also known for pairing coffee drinks with meals. Many people ask on the internet whether Burger King’s coffee is good; you can find information related to BK’s coffee and from which place they bring it.
Frequently Asked Questions (FAQs)
Why is Burger King meat so cheap?
Burger King meat is cheap because they buy it in bulk from suppliers. The company buys meat products from McLane Food Services, the largest supplier, offering reasonably priced meat.
Does Burger King use real meat?
Yes, Burger King uses 100% beef in their burgers. The burger patties are fresh meat without fillers, preservatives, or additives.
What makes Burger King nuggets so cheap?
Burger King’s nuggets are cheap because they are a loss leader. This means that Burger King is willing to lose a little money on the nuggets if it gets customers who will purchase other items in the door.
Why did Burger King lose popularity?
Burger King has lost popularity for several reasons, including price increases, overly complex menus, competition, and unhealthy foods.