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Christian Living

chinaconnection 02/05/09

McDonald's Expands Franchises, but Cuts Prices

The Golden Arches remain one of the most widely known international symbols, and 175 more of them are set to open this year throughout China.  McDonald's expects these stores to create over 10,000 new jobs this year alone, adding to the 1,050 Chinese stores that employ 60,000.

Despite this expansion, the famous fast food chain hasn't been exempt from the economic downturn.  While the U.S. chains are known for their $1 menu and inexpensive offerings, the prices at McDonald's in China are higher than those in average restaurants, making McDonald's more of a luxury.   

To attract more patrons, the company has cut 40% of prices, and 50% of the restaurant's offerings cost the same or less than they did ten years ago.  Considering that the average GDP per capita throughout China has grown quite a bit during this time, this decision should allow a much wider audience to get their fill of Big Macs and Fillet-o-Fish. 

McDonald's is not China's only restaurant that's experienced slower growth.  Rival KFC has also had a somewhat lackluster end of the year, but reports that same-store sales did increase 1% in the fourth-quarter.

While the economic impact of McDonald's decision to expand in China will remain to be seen, the increased availability and cheaper prices of McDonald's food is almost certain to increase the caloric intakes of many citizens.

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