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China Loses Taste for Fast Food

Chinese revert to cheaper, healthier options amid recession

By Ambreen Ali,  Newser User

Posted Feb 12, 2009 4:25 PM CST

(Newser) – The dollar menu thrives when times are tough in the US, but in China—where Western fast food is no bargain—the American chains are facing tough competition. Price is the main sticking point, but not the only one. "It's fast food," one diner in Shanghai told the LA Times; "it's not good for you"

China's KFC and Pizza Hut outlets saw just 1% growth last quarter, down from 17% a year earlier. But it's too early to bail on the increasingly affluent Chinese economy. Though McDonald's acknowledged what an exec called "some softening at the latter part of 2008," the company plans to open 175 stores this year, bringing its total to 1,225.

KFC has enjoyed its growth in China, where the brand is perceived as cleaner than local diners. But the recession indicates trouble may be on the way.
KFC has enjoyed its growth in China, where the brand is perceived as cleaner than local diners. But the recession indicates trouble may be on the way.   (AP Photo/Eugene Hoshiko)
Chinese walk past a McDonald's outlet in Shenyang in northeast China. The company cut some of its prices after a slow fourth quarter.
Chinese walk past a McDonald's outlet in Shenyang in northeast China. The company cut some of its prices after a slow fourth quarter.   (AP Photo)
Fast-food chains cost triple what local diners charge in China. People are reverting to low-cost food amid the recession, and heightened awareness of health.
Fast-food chains cost triple what local diners charge in China. People are reverting to low-cost food amid the recession, and heightened awareness of health.   (AP Photo/ Elizabeth Dalziel, File)
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COMMENTS
Showing 3 of 4 comments
zaphod
Feb 14, 2009 8:08 PM CST
175 new mcd's just what china needs
scottaco
Feb 13, 2009 3:19 AM CST
I lost my taste for fast food years ago.
kati
Feb 12, 2009 10:21 PM CST
Hope McD falls flat on its face, suffers and dies, that goes for the others, too of course.

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