Dollar Beverage Bargains Blossoming

Burger King plans $1 slushy deal to counter McDonald's promo.

April 29, 2010

NEW YORK - Burger King announced earlier this week its plan to sell $1 slushy drinks leading into the summer, a direct counter to a $1 beverage promotion announced earlier this year by McDonald??s, Dow Jones Newswires reports.

BK??s offer includes $1 small- and medium-sized Icees in Coke and Fanta Cherry flavors to run nationwide from May 24 until June 20. The plan recently won the approval of franchisees, a sign that the relationship between BK corporate and its franchisees has thawed. Recently, many franchisees complained about the company??s $1 double cheeseburger promotion, maintaining that the sandwich was unprofitable at that price-point.

"It's good to get back to the normal way of doing things," one Burger King franchisee said.

McDonald??s began contemplating its own $1 drink offers recently, whether for just its 32-ounce Sweet Tea, as previously announced, or for all of its soft drinks. McDonald??s franchisees are voting market-by-market for such a plan.

Burger King??s drink deal comes as competition among QSRs heats up. High unemployment has plagued key QSR customer demographics, including teens, African Americans and Hispanics.

Burger King reported an 8.2% drop in its U.S. and Canada same-store sales for January and February.

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