Hamburger chains are shifting away from low-price strategies after cheap burgers failed to lure back customers following the outbreak of mad cow disease 1 1/2 years ago.
McDonald's and Lotteria have started jazzing up their outlets along the lines of cafes such as Starbucks. The two chains are also developing "quality" hamburgers, effectively following the strategy of Mos Burger.
In August 2002, McDonald's Holdings Co. (Japan) Ltd. slashed the price of its regular hamburger to an all-time low of 59 yen. The move failed to stem the decline in same-store sales, which led to Japan's largest burger chain posting its first net loss in 29 years.