McDonald's Corp., the world's largest fast-food chain, slashed prices of its Filet-O-Fish and other popular menu items by as much as one-third in China, the latest move to lure more cost-conscious consumers during the economic downturn, according to a statement released by the company earlier this month.
Although China's economy continues to decline amid the global financial crisis, dragging down growth by 6.8 percent in the fourth quarter of this year, McDonald's continues to benefit from consumers switching over to lower-priced goods. In the last three months of 2008, the company reported a sales increase.
Four combo McDonald's meals, including the Filet-O-Fish, Double Cheeseburger, McNuggets, McPuff and the new Mala Pork Burger, now cost USD 2.40 (EUR 1.91) each, a savings of up to one-third from the original prices. A new breakfast combo retails at $1.50.
"The company has done well in the face of recession, because people thought twice about where to spend money when going out for food," said Chief Executive Jim Skinner.
China, with 1.3 billion people, is one of McDonald's fastest growing markets.
A growing number of local Chinese restaurants have reduced menu prices since the recession in an effort to attract more customers. McDonald's main competitor in China, KFC, also began implementing promotions, which led to a slight sales increase late last year.
