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Fast-food firms have to be a thick-skinned bunch. Health experts regularly l
Fast-food firms have to be a thick-skinned bunch. Health experts regularly l
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2023-12-12
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Fast-food firms have to be a thick-skinned bunch. Health experts regularly lambaste them for peddling food that makes people fat. Critics even complain that McDonald’s, whose golden arches symbolise calorie excess, should not have been allowed to sponsor the World Cup. These are things fast-food firms have learnt to cope with and to deflect. But not perhaps for much longer. The burger business faces more pressure from regulators at a time when it is already adapting strategies in response to shifts in the global economy.
Fast food was once thought to be recession-proof. When consumers need to cut spending, the logic goes, cheap meals like Big Macs and Whoppers become even more attractive. Such "trading down" proved true for much of the latest recession, when fast-food companies picked up customers who could no longer afford to eat at casual restaurants. Traffic was boosted in America, the home of fast food, with discounts and promotions, such as $ 1 menus and cheap combination meals.
As a result, fast-food chains have weathered the recession better than their pricier 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. Same-store sales in America at McDonald’s, the world’s largest fast-food company, did not decline throughout the downturn. Panera Bread, an American fast-food chain known for its fresh ingredients, performed well.tooiits boss, Ron Shaich, claims this is because it offers higher-quality food at lower prices than restaurants.
But not all fast-food companies have been as fortunate. Many, such as Burger King, have seen sales fall. In a severe recession, while some people trade down to fast food, many others eat at home more frequently to save money. David Palmer, an analyst at UBS, a bank, says 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 at the same time they are "slugging it out with a global powerhouse" in the form of McDonald’s, which ramped up spending on advertising by more than 7% last year as others cut back.
Some fast-food companies also cannibalised their own profits by trying to give customers better value. During the recession companies set prices low, hoping that once they had tempted customers through the door they would be persuaded to order more expensive items. But in many cases that strategy backfired. Last year Burger King franchisees sued the company over its double-cheeseburger promotion, claiming it was unfair for them to be required to sell these for $ 1 when they cost $ 1.10 to make. In May a judge ruled in favour of Burger King. Nevertheless, the company may still be cursing its decision to promote cheap choices over more expensive ones because items on its "value menu" now account for around 20% of all sales, up from 12% last October.
Analysts expect the fast-food industry to grow modestly this year. But the downturn is making them rethink their strategies. Many companies are now introducing higher-priced items to entice consumers away from $ 1 specials. KFC, a division of Yum! Brands, which also owns Taco Bell and Pizza Hut, has launched a chicken sandwich that costs around $ 5. And in May Burger King introduced barbecue pork ribs at a hefty $ 7 for eight. [br] According to David Palmer, smaller fast-food chains should
选项
A、spend less than 7% of their revenue on advertising.
B、take advantage of the recession to defeat McDonald’s.
C、make various kinds of burgers to attract consumers.
D、seek their own ways of promoting sales and avoiding imitation.
答案
D
解析
推断题。由David Palmer定位至第四段。末句给出了小快餐连锁店在经济衰退中受到重击的原因:because at the same time they are“slugging it out with a global powerhouse”in the form ofMcDonald’s,即模仿了麦当劳的经营模式,“which ramped up spending on advertising by more than7% last year as others cut back”, 可见作者认为在经济衰退时期,小快餐店和大规模的连锁店不可同日而语,不能效仿后者大幅增加开支,[D]符合文意,故为答案。
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