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QSR sales weaken in China, U.S. brands still plan for growth
February 11, 2009
Los Angeles Times: International sales have boosted U.S. quick-service brands for several years, but the down economy in China is hurting sales. Chinese consumers are beginning to see Western fast food as unhealthful and more expensive than local fare.
Still, Jeff Schwartz, head of McDonald's China operations, said the company plans to open 175 stores in China this year, more than anywhere else.
Yum! Brands, Burger King, Dunkin' Donuts, Starbucks and Cold Stone Creamery are bulking up in China as well.Click to continue
In related news, Bloombergreportedthat McDonald's plans to take advantage of lower costs of opening outlets in China. The chain's global sales grew 7.1 percent in January, beating analysts' estimates, with revenue in Asia, the Middle East and Africa jumping 10 percent.
Also, The New York Times (subscription required)sees McDonald's recent introduction of four new combo McDonald's meals in China as a sign that the global slowdown has truly arrived in the once-sizzling Asian economy.
Other QSR brands, like KFC, also have lowered prices in China.
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