'Korea is Sadalla, USA is Odalla'... US Food Company Fights for Cost-Effectiveness Marketing Survival

Burger King $5 Set Menu Revamp
KFC and Taco Bell Also Offer $2 Menu Items

Food companies and restaurant chains in the United States are striving to secure price competitiveness to target consumers suffering from excessive price increases.

On the 3rd (local time), The Wall Street Journal (WSJ) reported that the global food and beverage manufacturer Kraft Heinz has recently been supplying its products to dollar stores and retailers selling low-priced products in the U.S. Dollar stores refer to stores that sell low-priced items, similar to Japan's "100 yen shops."

[Image source=Burger King TV Commercial·Getty Images Bank]

Global dining company Yum Brands, which operates KFC, Burger King, and Taco Bell, is actively launching low-priced products. Burger King revamped its $5 set menu this year, adding options such as Whopper Junior or a bacon cheeseburger with a drink. KFC introduced a $2.05 chicken wrap this year. Taco Bell launched a $2 menu and has been heavily promoting it.

As consumers reduce dining out, restaurant companies are focusing on selling low-priced products. Black Box Intelligence, a U.S. restaurant sales analysis company, reported that the number of orders at most U.S. restaurants decreased compared to the previous year as of last month.

The decrease in orders was especially noticeable at affordable fast-food chains. In the case of McDonald's and Domino's Pizza, there was an increase in orders for smaller portions than set menus, and delivery orders also declined.

[Image source= Kraft Heinz]

The reduction in dining out is analyzed to be largely due to high inflation. Last month, the U.S. Consumer Price Index (CPI) rose by 5.0% year-over-year, indicating some easing of price pressures. However, food prices in the U.S. increased by 8.5% last month, exceeding the CPI. In March, cereal and bakery prices rose 13.6% year-over-year, and dairy product prices increased by 10.7%. Considering that U.S. food prices typically rose at a rate of around 2% since the 1980s, the recent years' surge has been excessively steep.

A representative from the U.S. restaurant chain Applebee's explained during the first-quarter conference call, "American consumers are trying to be discerning about the value they expect," adding, "Food company executives are closely monitoring how consumers spend money as concerns about an economic recession intensify."

This content was produced with the assistance of AI translation services.