C
"Fast-food companies must be a thick-skinned bunch." Health experts regularly criticize them severely for selling food that makes people fat. Critics even complain that McDonald's, whose logo symbolizes calorie excess, should not have been allowed to sponsor the World Cup. These are things fast-food firms have learnt to cope with. But not perhaps for much longer. The burger business faces more pressure from regulators at a time when it is already adapting strategies in response to shifts in the global economy.
Fast food was once thought to be recession-proof. When consumers need to cut spending, the logic goes, cheap meals like Big Macs and Whoppers become even more attractive. Such “trading down” proved true for much of the latest recession, when fast-food companies picked up customers who could no longer afford to eat at casual restaurants. Traffic was boosted in America, the home of fast food, with discounts and promotions, such as $1 menus and cheap combination meals.
But not all fast-food companies have been as fortunate. Many, such as Burger King, have seen sales fall. In a severe recession, while some people trade down to fast food, many others eat at home more frequently to save money. David Palmer, an analyst at UBS, a bank, says smaller fast-food chains in America, such as Jack in the Box and Carl's Jr., have been hit particularly hard in this downturn because they are competing with the global giant McDonald's, which increased spending on advertising by more than 7% last year as others cut back.
Some fast-food companies also sacrificed their own profits by trying to give customers better value. During the recession companies set prices low, hoping that once they had tempted customers through the door they would be persuaded to order more expensive items. But in many cases that strategy did not fire. Last year Burger King franchisees(特许经营人) sued(起诉) the company over its double-cheeseburger promotion, claiming it was unfair for them to be required to sell these for $1 when they cost $1.10 to make.
Analysts expect the fast-food industry to grow modestly this year. But the downturn is making companies rethink their strategies. Many are now introducing higher-priced items to entice(引诱) consumers away from $1 specials. KFC, has launched a chicken sandwich that costs around $5. And in May Burger King introduced barbecue pork ribs at $7 for eight.
1. In paragraph 2, "Traffic was boosted in America" probably refers to the idea that _____.
A: Transportation firms gained considerable profits.
B: The number of customers for fast-food firms increased visibly.
C: American's public transport system was improved consistently.
D: Fast-food firms made a lot of money by selling high-price items.
2. In severe recessions, Jack in the Box and Carl's Jr. _____.
A: suffered great negative impacts of economic decline
B: increased their spending on advertising by more than 7%
C: used McDonald's over its double-cheeseburger promotion
D: had great advantages compared with their global giant competitors
3. What can we learn from the passage?
A: Burger King will continue to use its low-price strategies.
B: Fast-food restaurants can make a lot of money by selling breakfast.
C: Many people eat out more often to save money in times of recession.
D: During the recession, many customers turned to fast food to save money.
4. We can probably read this passage in _____.
A: a research report
B: a traffic magazine
C: a promotional plan
D: a commercial advertisement
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