Thu, Aug 19, 2004 - Page 10 News List

President Chain beefs up patties to muscle out rivals

BURGER BATTLE The company is laying stake to the title of the nation's biggest burger chain and has begun offering larger patties to lure customers

By Jackie Lin  /  STAFF REPORTER

President Chain Store Corp (統一超商), which operates the world's third-largest 7-Eleven franchise, launched what it said were the nation's biggest hamburgers yesterday, hoping for fat profits with the help of its expanded network of outlets, around-the-clock operations and cheaper prices.

Claiming to be the nation's No. 1 burger chain -- given its 3,600 outlets nationwide -- the company began making inroads into the hamburger market in August last year by offering microwaveable burgers at nearly half the price of those from fast-food restaurants.

To mark the anniversary of that launch, 7-Eleven rolled out its new "Jumbo burgers" -- which are 12.7cm in diameter, compared with industry standard of 8.89cm and come in three flavors.

The company is optimistic about its market potentials, saying it has found a competitive edge in the crowded hamburger market.

"Our survey showed that 30 percent of our hamburgers sales take place between 10pm and 2am -- when most fast-food places are closed," said Jackie Su (蘇嘉麒), manager of the company's fresh food department, at yesterday's press conference.

"Also, we have priced our products between NT$30 and NT$45 apiece, which directly benefits buyers because it's cheaper than what they are offered for a sit-down environment," he said.

The company said it has sold 16 million burgers over the past year, or 43,800 burgers per day.

"We hope to achieve the goal of 22 million burgers sold by next August, which would mean that nearly every person in Taiwan has eaten our fast food," he said.

Major fast food players, however, shrugged off concerns that they would feel the pinch, citing different customer targets and cooking methods.

"I don't think their low-price strategy will cut into our sales because we can meet our customers' demands for high standards of quality and service," said Shalom Chen (陳家祥), public relations manager of McDonald's, which has 345 outlets nationwide.

Noting that the nation's dine-out market is increasingly diversified, Chen said it is unlikely that a new player joining the battlefield would have impact on its competitors.

Yum! Restaurants (Taiwan) Co (台灣百勝肯德基), which runs 132 KFC outlets nationwide said it has seen rising burger sales this summer compared to the same period last year.

"We offer a comfortable air-conditioned place and freshly cooked products, rather than frozen food, to cater to Western-food lovers," said public affairs manager Elaine Tsou (鄒衡蕪).

Tsou said 7-Eleven's jumbo burgers are nothing new as KFC launched a 11.43cm chicken-leg hamburger earlier this month.

KFC said its super-size burgers could satisfy young people's large appetites.

Neither McDonald's nor KFC would disclose details of their burger sales.

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