CBS: McDonald's Japan cuts prices
McDonald's Japan has cut the prices of some products at about 110 locations in the Miyagi and Hiroshima metropolitan areas of Japan, making them round numbers to convey a sense of value...The unit of McDonald's is now offering value meals for 500 yen at those locations. For example, the price of a chicken filet meal was cut 77 yen and a Filet-O-Fish meal 45 yen compared with nationwide prices...The company will consider expanding the price cuts nationwide.
Prices of individual items were reduced as well, the Nikkei said. The price of a Big Mac was cut by 12 yen to 250 yen, and the price of medium French fries and salads by 52 yen to 200 yen. Meanwhile, the Nikkei reported that some items saw price hikes. For example, the price of a hamburger was raised to 100 yen from 84 yen. And by setting prices at round numbers, the company hopes to alleviate employees' handling of 1 yen and 5 yen coins, which is expected to reduce congestion at the registers, the report said. The Nikkei reported that the company had kept its prices unchanged even as many fast food chains adjusted prices to round numbers when a law went into effect last April requiring stores to display prices inclusive of the 5 percent consumption tax.