On Monday, Burger King China launched its “Signature Burgers, 9.9 Yuan Every Week” promotion, slashing the prices of four signature burgers to 9.9 yuan (approximately $1.4) for a four-week period.
This move aligns with a broader trend where various brands have reduced burger prices to under 10 yuan. KFC has introduced a “9.9 Yuan Burger Voucher,” and McDonald’s has run “10 Yuan Burger” deals three times.
Burger King’s latest promotion marks the beginning of the “9.9 Yuan Era” in China’s burger market.
Industry experts suggest that leading brands are engaging in a “price war” to boost brand presence and expand market share in an increasingly crowded sector. With shrinking profit margins, companies are being driven to enhance their “cost-performance ratio” to stay competitive.
Tang Junzhang, Marketing Director of Burger King China, explained that this is a pivotal moment for burgers to gain traction in the Chinese food and beverage market. While selling burgers at 9.9 yuan may not yield immediate profits—given that this price is 2 to 2.5 times higher than coffee—such promotions are essential for surviving in the competitive fast-food industry.
In response to consumer preferences, many food and beverage (F&B) businesses, beyond just burger chains, have also lowered prices or launched promotions. The coffee and tea sectors are experiencing similar price battles, with many “9.9 yuan” and “8.8 yuan” offers.
McDonald’s CEO Christopher John Kempczinski recently highlighted the intense competition in the Chinese market. He noted that consumers are highly motivated to seek out bargains, both within the fast-food industry and across the broader consumer goods sector.
According to the China Chain Store & Franchise Association, while consumer spending may have declined, expectations for quality and dining experiences remain high. F&B enterprises must balance low prices with quality, portion sizes, and dining environments to maintain competitiveness. This ongoing price competition is compelling companies to continually refine their “cost-performance ratio.”
Although the restaurant industry is recovering quickly, it continues to face significant challenges related to cash flow and store operations.