Why does the price of the Duke broiler increase as Burger King buys more broilers?
When Duke was approached by Burger King to develop a new broiler almost 3 years ago, we were given an extremely aggressive price target to meet. That price did not change through the entire 3-year development process, even though raw material and labor costs increased and we added improvements to the design. The recent, substantial increases in stainless steel played a large part in the rise in material costs. In the interest of trying to honor our production commitment to Burger King, we renegotiated an agreement that would help offset some of the increased material costs as we sold additional broiler units. Duke established the first (lowest) pricing tier to provide equal opportunity to the company-owned stores and the franchisees, with each having about 800 broilers available to purchase at this price.
