Burger King is risking business in the United States by moving to Canada, according to a new consumer-attitudes study released today by Technomic.
The survey also revealed that 83 percent of restaurant customers would favor an increase in the minimum wage and indexing the rate to inflation so hikes are automatic in the future.
Burger King is embroiled in controversy over a pending move to Canada, though the franchisor insists the relocation has more to do with its acquisition of Tim Hortons than with lowering its tax rate.
Buying a company outside of the national boundaries and then relocating there is known as inversion. The practice has been under intense scrutiny by the White House since BK’s pending inversion was announced. The U.S. Secretary of the Treasury has commented that his department is cracking down on the process, and that any company with an imminent move should think twice. However, Burger King was not mentioned by name.
“Our research shows that any restaurant company considering a tax inversion runs the risk of strong consumer backlash,” said Bob Goldin, an executive vice president of Technomic.