Western restuarants have always been considered a little expensive among the locals in China. And in these trying times, it's even more so. And McDonalds sales have suffered because of it. In response to these poor sales, McDonalds is cutting prices in China by as much as a third. In fact, fifty percent of their menu items are now the same price that they were ten years ago.
This move raises some interesting questions for all you junk food fans out there. First, when and if we ever get out of this economic rut will McDonalds return to the more expensive prices? One can imagine that such a move would not be well received. So for now it looks as though there's no turning back anytime soon. This puts them at a considerable advantage over their primary competition KFC, who actually entered the Chinese market long before Mickey Dees did. Will KFC follow suit and drop prices as well so that they can stay competitive?
My suggestion to KFC would be to drop the "french" from "french fries" so that all those nationalistic customers who boycott French products can finally come in and enjoy a nice meal. That's certainly gotta account for a good chuck of market share!
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