Monday, December 05, 2005

Korean Burger Wars

Burger Wars...
An increasingly desperate fast food industry is vying for customer attention. To gain customers many fast food chains are giving out freebies worth as much as the purchase required to get them.

Korea’s leading fast food chain Lotteria (owned by the Lotte Group) said it will give out cell phone call vouchers worth about $4 to customers who buy set menus for the same price.

In addition, South Korean fast food firms continue to slash prices for set menus amid fierce competition in a dwindling market. Set menus typically consist of a burger, French fries and soft drink, and prices have already dropped to below $3 in some chains, making a single hamburger more expensive than a combo.

After McDonalds started selling set menus at $3 during lunchtime in May, Lotteria cut its set menu prices to $2.90.

The industry is also attempting to attract customers with improved services. Lotteria, McDonalds and Burger King have renovated some branches to make them look like caf├ęs rather than dreary fast food stores.

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