From octopus Pizza Hut pies to spicy Quarter Pounder hamburgers, U.S. fast food is undergoing major changes in China as restaurant titans like Yum Brands and McDonald's Corp. vie to dominate a market they say could approach or exceed business at home.

For nearly 20 years, McDonald's and Yum Brands Inc.'s KFC chain have been selling burgers and fried chicken in China, the world's most populous nation.

In the last four years, however, China's economic growth has skyrocketed -- to over 10 percent a year -- and its citizens are enjoying much greater spending power.

Add to that cheap food costs and low wages, and U.S. chains say they will be able to open dozens of stores a year and enjoy strong sales and profit increases in China for years to come.

Still, challenges remain. Transporting goods in areas without adequate road systems is difficult, the labor market has tightened, and many Chinese consumers still cannot afford to eat out all the time. Chains said they must be vigilant about what they charge for food in China, where incomes are modest compared with the United States.

McDonald's, which saw its sales at established restaurants in China decline slightly last year, recently dropped the price of a small burger, French fries, and a drink to 10 yuan ($1.28) from 12.5 yuan ($1.60).

Yum reexamines its pricing twice a year, according to Sam Su, the head of Yum China, and recently lowered the price of a delivery Pizza Hut pizza so customers would be more inclined to order a pizza -- still a new concept -- as an "everyday" thing. Yum also operates a sit-down Pizza Hut chain in China that is separate from its delivery service.

Source:佚名