McDonald’s Scales Back Prices in China

[Coventina]

Source: New York Times

HONG KONG -- When McDonald’s sharply lowers the price of the Filet-O-Fish and Double Cheeseburger in China, one thing is clear: the global slowdown has truly arrived in the once sizzling Asian economy.

Thursday that the world’s most populous nation would now be able to feast on four new combo McDonald’s meals — also featuring a chicken filet burger and a pork burger — for 16.50 yuan, or $2.41, a savings of up to one-third from the former price.

The special promotion, McDonald’s said, is “in line with the government’s direction to stimulate domestic demand” and “help build a stronger economy.” As the economy slows, “we can do our part by helping stimulate domestic demand in the restaurant sector,” said Jeff Schwartz, McDonald’s China chief executive.

McDonald’s is not the only food retailer to have lowered prices in China Others like KFC also have launched promotions as shoppers in China began to fret about slowing growth and rising unemployment. But the price reductions by one of the world’s best-known companies highlight how the economic downturn that began in the United States has changed shopping — and selling — patterns as far away as China.


Read more: http://www.nytimes.com/2009/02/06/business/worldbusiness/06mcdonalds.html?ref=worldbusiness

[W_HAMILTON]

1. What, no McDouble?

When the economy sucks in the U.S., we get scaled back food. When the economy sucks in China, they get scaled back prices?

Hmm.

[YOY]

2. They see them as having a chance of growth.

We are not seen by the powers that be as capable...perhaps rightly so. They do have all of (OUR) industry.

Thanks trickle-down economics! You did create jobs! Not here, but you did create jobs. Not well paying jobs or sustainable profit jobs, but jobs none-the-less!

Go you geniuses of capitalism.

(Do I even need a sarcasm sticker?)