
McDonald's launches the Pita Mac
BusinessWeek: Has Japan Outgrown the Big Mac?
...McDonald's Japan has outperformed a sluggish market for fast food and posted increases in same-store sales of as much as 11.6% every month since February... [CEO] Harada's efforts have been helped by new sandwiches better tailored to Japanese tastes. One hit has been the Ebi Filet-O, a shrimp-burger that generated sales of 10 million in the first three months after its launch last October...Still, rebuilding the brand will take more than just a few menu changes...It seems the Japanese love affair with McDonald's has peaked. Today young Japanese are happy to pony up for a Caramel Frappuccino from Starbucks or a bowl of noodles at a local mom-and-pop eatery...Another factor has been the growth of convenience stores. Today, some 30,000 sell everything from sausages to sushi, and they account for a third of Japan's $62 billion fast-food market...And with deflation seemingly at an end and consumer confidence growing, the Japanese may be willing to pay more for food and be looking for higher-quality fare than McDonald's...Harada is keen to steer McDonald's further upmarket. "We have to graduate with our customers," he says. McDonald's now offers free wireless Internet at 2,660 restaurants, increasing traffic as salarymen surf while they sup. More radically, Harada is considering a new type of restaurant with fancier menus and interiors, though he declines to provide details...more...