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Home / Business / Mistake of a mistake: Discount gaff costs Burger King's top franchisee more than $ 12 million

Mistake of a mistake: Discount gaff costs Burger King's top franchisee more than $ 12 million





A double rebate error turned into a major loss to the nation's largest Burger King franchisee.

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Officials at Carrols Restaurant Group of Syracuse, New York, which operates 1,032 Burger King fast food restaurants, said a double discount on Whooper meals during the second and third quarters of 2019 resulted in a $ 12.4 million reduction in revenue and a net loss of $ 8.2 million, Syracuse Post-Standard reported.

Carrols & # 39; Burger King franchises combined two Whopper discounts, Restaurant Business reported.

According to CEO Dan Accordino, the error occurred when the company offered two Whopper Jr. sandwiches for $ 4, two Whoppers for $ 5 and two Double Whoppers for $ 6, reported Post-Standard.

Customers should be charged regular prices for French fries and drinks they ordered with discounted Whoppers. Instead, they were charged lower prices with the "value meal," Accordino told the newspaper. It cost the company $ 1.50 for each sale, Post-Standard reported.

“It was not an accounting question. It was not a system problem. It was a mistake, says CEO Dan Accordino during Carrols' third-quarter earnings interview Thursday, according to a transcript on the Sentieo financial services website. "We screwed up and it cost us a good deal of money."

Carrols figures have been much better since the bug was discovered in August and corrected. Revenue increased by 7.9% in September, compared with 4.5% overall in the third quarter, Post-Standard reported.

"We have turned up, but the fact is that the underlying business is stronger than our numbers reflect," Provisional CFO Timothy LaLonde told analysts in the same conference call Thursday, Post-Standard reported.


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