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Burger King Value Menu Sinks Local Franchisees
By
John Del Signore
Published Mar 5, 2008
Modified Mar 7, 2008
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By
John Del Signore
Published Mar 5, 2008
Modified Mar 7, 2008
Share
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The owners of four Manhattan Burger King franchises are locked in a nasty legal battle with their royal overlord. Luan Sadik and his sister, Elizabeth Sadik, rebelled against the mandatory 99-cent menu and the recent dollar Value Menu because the prices couldn’t cover the obscene Manhattan rent and the fast food monarch roared.
According to the Daily News, their rent at a Fifth Avenue restaurant is $9,000/month and $18,000.month at a 47th Street location. The Sadiks also kick up a monthly royalty to the King based on gross sales.
The Sadiks appealed for an exemption from the Value Menu, which was granted to Burger King franchises in airports and rest stops, but not to the Sadiks. When they closed two of their restaurants last year without corporate approval, Burger King took them to court and, six weeks ago, Burger King shuttered the Sadiks’ last two midtown restaurants.
The siblings are now countersuing Burger King. The Sadiks have owned Burger Kings in Manhattan for over ten years, but since 2001 they’ve operated at a loss. According to court papers, “the 99-cent menu was a financial disaster as customers constantly purchased the low-cost food items, which further deteriorates the [Sadiks'] bottom line.” It's unclear what the franchisees at other BK locations think.
Photo: Peter Stanik
Tagged
burger king
closed
court
daily news
fast food
fifth avenue
kings
lawsuit
manhattan
new york city
news
nyc
rent
Sadiks
us
value meal
John Del Signore
Originally from the Albany area, John Del Signore has called NYC home since 1995. In addition to his thousands of meticulously-crafted bespoke blog posts for Gothamist, his writing has also been published in The Awl, Deadspin, The Nervous Breakdown, and performed at The Brick Theater in Brooklyn.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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