9.9-yuan burgers sweep fast food chains

Fast food giants such as McDonald's, KFC, and Burger King have recently launched 9.9 yuan burgers in China. More burger chains in China like TASTIEN and Dicos have gone even further, offering burgers priced as low as 5 yuan.

The drop in burger prices is really a rare occurrence. Twenty years ago, McDonald's distributed paper discount coupons, with small deals like fries and McNuggets pasted on an A5-sized sheet. These coupons usually included only 3-4 discounted burger offers.

However, this year has seen a wave of collective price cuts across the burger market. In April, KFC launched a limited-time 9.9 Yuan Burger Voucher for four products. McDonald's followed suit, rolling out its 10 Yuan Burger promotions in January, May, and July. In August, Burger King slashed prices on four of its signature burgers to 9.9 yuan for four consecutive weeks.

As the fast-food giants dropped their prices, more affordable burger brands also joined the price-cutting trend. Wallace, for example, introduced a 4.8 yuan burger promotion in August, involving over 20,000 stores nationwide.

A few years ago, high-end burger brands were all the rage. For instance, Cheers Burger in Shanghai had customers pay 70 yuan per person even without seats; customers would sit on the street to enjoy their burgers. These premium burgers often featured ingredients like foie gras and top-quality beef, providing a unique culinary experience.

However, consumer preferences and demands have shifted. In April of this year, The Habit Burger Grill, often dubbed the "Hermès of the Burger World," announced its exit from the Chinese market. In June, SHAKE SHACK closed its second store in Wuhan and paused plans for a third store in the city.

Chris Kempczinski, McDonald's CEO, noted in a recent conference call that the competition in the Chinese market is currently very intense. "We have noticed that consumers are highly price-sensitive and prefer deals. Many customers are making purchasing decisions based solely on the best available deals,” said Kempczinsky, “so, if we were to offer more expensive products, we would be going against the current consumer trends."

Source: CNR News; trans-editing by Wang Yunya