One of our favorite franchise-related blogs is OC Weekly’s “Taco Bell Crime of the Week!”. For some reason, Taco Bell restaurants are a magnate for murder and mayhem, and this blog chronicles many of the bizarre crimes that occur there. Sometimes, it’s customers getting into trouble, and sometimes it’s employees. And sometimes it’s both. Like this recent story. A woman in Dayton, Ohio recently rolled up to the drive-thru window. She was expecting to receive her food, when instead she was handed a Taco Bell bag stuffed with $2,000 in cash. Preferring the cash to her order of Chalupas and chips, the women promptly took off. So why was she handed a bag of money in the first place? “The restaurant manager explained that it is store policy to put the bank bag into a Taco Bell bag. The manager then explained that he would drive up to the drive-through window and an employee would give him the bag.” Police are currently looking for the women. The manager, meanwhile, is presumably looking for a new job.
Battle royale. The battle over the $1 double cheeseburger between Burger King and its franchisees continues to rage. This seemingly endless war was prolonged recently when a Miami court ruled that BK was well within its rights to force franchisees to cap the price of the burger at a buck, even though they were losing money on every sale. However, in a victory for franchisees, the court also ruled that Burger King may have acted in bad faith by not having the best interests of its franchisees at heart. So what does this mean? It means that both sides will be returning to court to settle this “good faith” issue once and for all. The stakes are very high for both sides. If Burger King does not prevail, it will likely have to reimburse franchisees for a majority of their losses. In the meantime, the company has allowed franchisees to raise the price of the double cheeseburger to $1.29.
Same old Denny’s. In other legal wrangling, the management of Denny’s successful withstood a shareholders revolt that would have replaced all board members. A group called the Committee to Enhance Denny’s, which owns 6.3 percent of the company’s outstanding shares, wanted to dump Denny’s CEO and chairwoman and replace them with its own candidates. The dissident group blamed current management for not doing enough to cut overhead and stop slumping sales. One restaurant analysts quoted by The Wall Street Journal, said the vote in support of current management spells bad news for Denny’s future. “It really postpones any type of recovery for them,” he said “It doesn’t light a fire under their bellies to make changes. It’s going to be more of the same old, same old.”