began offering on Monday its regular hamburgers for 59 the lowest price in the chain's 30-year history in Japan while rival Lotteria Co. will discount its set menus by up to 25 percent next weekend.

McDonald's hamburgers were sold for 65 on weekdays during a two-year sales campaign that ended in February. Until Sunday, the hamburgers sold for 80 throughout the week.

McDonald's came up with the latest discount campaign after sales declined sharply starting in February.

The golden arches also reduced the prices of its cheeseburgers to 79 from 120 and hot dogs to 75 from 150.

Lotteria announced last Tuesday it will launch a "kikkari" set sales campaign.

The kikkari set, or a set menu with round-figure prices, is an apparent move by Lotteria to differentiate itself from McDonald's campaign.

Lotteria said it will not discount the price of individual food items, but various set menus will be repriced so they come to rounded figures with tax included.

For example, Lotteria's cheeseburger set, which includes a drink and french fries, will cost 300 including tax, down from 380 excluding tax.

The two hamburger chains' campaigns are expected to trigger another round of price-cutting competition between fast-food restaurants.

McDonald's Japan, set up in May 1971, posted 438.9 billion in sales in 2001.

Lotteria, established in February 1972, had 56.8 billion in sales in 1998, the latest year for which figures are available.