A family that owned several failed Burger Kings is suing the fast food giant, claiming the company’s $1 value menu made it impossible for them to turn a profit in high-priced Manhattan.
Franchise owners Elizabeth and Luan Sadik say in a federal lawsuit filed last month in Brooklyn that they begged Burger King for permission to raise prices at their Midtown restaurants so they could cover their high costs.
One of their eateries near Grand Central Terminal was paying $18,000 per month in rent, an amount they said they couldn’t cover selling hamburgers for $1.
Burger King said no, and when the family closed two unprofitable Manhattan restaurants in response, the company took legal action to shut down two of their remaining New York eateries. The last one closed six weeks ago.
Now, the sister and brother team is suing to force Burger King to cover some of the costs of the failed business. The two sides are also in court in Florida, where Burger King has filed a suit claiming the pair improperly broke their franchise agreement by closing stores without company permission.
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