McDonald's to standardize prices at Japanese stores

posted on October 16, 2015

McDonald's Holdings Co. (Japan) will shift from location-based to uniform pricing and end popular lunchtime discounts, raising prices overall to regain sales lost to slipping traffic.

The fast-food chain now sets prices by location, sorting restaurants into nine categories. But customers complain that the system is hard to understand, according to CEO Sarah Casanova. With limited exceptions, prices will be standardized at around 1,330 locations in cities and elsewhere.

A Big Mac meal, which currently ranges from 630 yen to 700 yen ($5.25 to $5.83), will sell for 670 yen from Oct. 26. Which prices rise and fall with the change will vary by location. But 70% overall will hold steady, with another 25% of items going up and 5% going down. The company sees the shift boosting sales by 0.9%.

McDonald's Japan will also retire a popular series of lunchtime discounted meal sets Oct. 23. Ten sets are now offered for 350 yen, 450 yen or 550 yen -- for savings of more than 100 yen in some cases -- on weekdays from 10:30 a.m. to 2 p.m. The discounts are credited with helping bring in demand for lunch foods. But rising prices of imported beef and other ingredients have made the program unsustainable.

An alternative set of low-cost products will go on sale Oct. 26.

source by newsonjapan
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