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          Catering:McDonald's to drive China sales

          (SD-Agencies)
          Updated: 2006-11-10 15:04

          McDonald's Corp said it is stepping up efforts to attract mothers with young children to its 770 restaurants in China as it works to increase sales in the China market and set itself apart from bigger rival KFC.

          McDonald's, the world’s largest restaurant company but the second-biggest fast-food chain in China, said it is focusing on mothers partly because they are a group that has been ignored by marketers in China.

          Gary Rosen, chief marketing officer for McDonald's China, said at a media event in Shanghai on Wednesday that there "is a huge opportunity here with women, with mothers, to start talking to mothers here on their level.... That's not something that's been done historically."

          To reel in more female customers, McDonald's is taking a page from its recent US turnaround by addressing moms' concerns about the food they serve their children.

          In the United States, sales at McDonald's restaurants have been revitalized in the last three years in part because the chain has added lower-calorie menu items like entree-sized salads and apple slices to its menu that have appealed to women with children.

          The company has also worked to deflect critics who say its burgers and French fries are contributing to increased levels of childhood obesity in the United States by promoting physical activity to its customers and putting nutritional information on its packaging.

          McDonald's is now taking a similar route in China, where childhood obesity is also on the rise, adding a steamed corn cup and grilled chicken sandwich to its traditional menu of burgers, fried chicken sandwiches and fries.

          The company also plans to test new playgrounds called "Ronald Gyms," so that its young customers can be more physically active at its restaurants.

          Rosen said, however, that Chinese consumers are less concerned about calories and fat than their American counterparts. The major concern in China, he said, is the threat of food-borne illnesses.

          "In China it's not necessarily about calories," Rosen said. "In China, what moms especially are concerned about is safety."

          Unsafe food is a common problem in China. Last year, sales at KFC suffered after some of its products were found to contain a dye banned from use in food, and this year hundreds children have fallen ill due to several mass food poisoning cases in schools across the country.

          The company is addressing food safety concerns with a series of television commercials that emphasize the quality of the beef, potatoes and other ingredients in its products.

          Nevertheless, Rosen said McDonald's wants to be ahead of the game on things like nutrition labeling, for which there are no laws in China. McDonald's will begin printing the nutritional content of its foods on wrappers and other packaging this month.


          (For more biz stories, please visit Industry Updates)



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