Bargain price? Signature burger players vie for China market share

(ECNS)-- Burger King China launched its "Signature Burgers, 9.9 Yuan Every Week" campaign on Monday, reducing the price of four signature burgers to 9.9 yuan (about $1.4) over four consecutive weeks.

Many brands have cut burger prices to below 10 yuan, with KFC offering a “9.9 Yuan Burger Voucher” and McDonald's running “10 Yuan Burger” promotions three times.

With Burger King's latest move, China's burger market has officially entered the “9.9 Yuan Era.”

Insiders indicate that major brands are participating in a “price war” to enhance brand penetration and increase market share in a saturated sector. As profit margins continue to tighten, the price competition is compelling companies to continuously improve their “cost-performance ratio.”

Tang Junzhang, marketing director of Burger King China, noted that now is the time for burgers to rapidly penetrate the Chinese food and beverage market. Although selling burgers at 9.9 yuan won't immediately generate profit, since this price is 2 to 2.5 times that of coffee — price promotions are crucial for survival in the competitive fast-food sector.

In response to consumer demands, many F&B enterprises, beyond just the burger industry, have also lowered their prices or offered promotions. The coffee and tea sectors are seeing escalating price wars with numerous “9.9 yuan” and “8.8 yuan” deals.

Recently, McDonald’s CEO Christopher John Kempczinski commented on the competitive market environment in China, stating that the competition is extremely intense. Whether in their industry or in the broader consumer goods market, consumers are highly motivated to seek bargains.

The China Chain Store & Franchise Association notes that while consumer willingness to spend may have decreased, expectations for quality and dining experience have not. F&B enterprises must maintain competitiveness through low prices while still upholding quality, portion sizes, and dining environments. This price competition forces companies to continually refine their “cost-performance ratio.”

While the restaurant industry shows signs of rapid recovery, it continues to face significant challenges related to cash flow and store operations.