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The
changes facing fast-food companies
Fast food was once thought to be
recession-proof. When consumers need to cut spending, cheap meals like Big Macs
and Whoppers become even more attractive. As a result, fast-food chains have
survived the recession better than their more expensive competitors. In 2009
sales at full-service restaurants in America fell by more than 6%, but total
sales remained about the same at fast-food chains. In some markets, such as
Japan, France and Britain, total spending on fast food increased.
But in this ongoing recession(萧条), which is more severe, not all
fast-food companies have been as fortunate. Many, such as Burger King, have
seen sales fall. In the recession, while some people trade down to fast food,
many others eat at home more frequently to save money. Smaller fast-food chains
in America, such as Jack in the Box and Carl's Jr., have been hit particularly
hard in this downturn because they cut back spending on advertising.
In face of such challenges, some fast-food
companies have sacrificed their own profits by trying to give customers better
value. During the recession companies set prices low, hoping to tempt more
customers through the door. But in many cases that strategy doesn't work. Some
companies are rethinking their strategies. KFC has launched a chicken sandwich
that costs around $5 to attract consumers away from $1 specials.
Companies are also trying to get customers
to buy new and more items, including drinks. McDonald's started selling better
coffee as a challenge to Starbucks. Its “McCafe” line now accounts for an
estimated 6% of sales in America. As fast-food companies shift from “super
size” to “more buys”, they need to keep customer traffic high throughout the
day. Many see breakfast as a big opportunity, and not just for fatty food.
McDonald's has started selling porridge in America, because the profits can be
high.
But what about those growing waistlines? So
far, fast-food firms have cleverly avoided government regulation. By providing
options like salads and low-calorie sandwiches, they have at least given the
impression of doing something about helping to fight obesity(肥胖). These offerings don't necessarily
lead to profit loss, as they can broaden the appeal of stores to groups of
diners that include some people who don't want to eat a burger.
But calls for tougher government regulation
never wear down. This year Congress passed America's health-reform bill, which
requires restaurant chains with 20 or more stores to put the calorie-content of
items they serve to the menu. And the recent proposal by a county in California
to ban McDonald's from including toys in its high-calorie “Happy Meals”,
because law makers believe it attracts children to unhealthy food, suggests
that fast-food companies will have to continue trying something new.
The changes facing fast-food companies
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