Fast food giants set for a price war

Many of the company’s fast food chains are gearing up for a major expansion

Sep 8, 2015

Old hands and new faces in the Danish fast food market are preparing to go head-to-head in a price war that analysts say will benefit consumers.

American firms Subway, Hwy 55 and Pizza Hut have jumped into the market in recent months. They have ambitions to open a large number of restaurants across the country.

While long-time players like Domino’s Pizza, McDonald’s, Kentucky Fried Chicken, Max Burger, Burger King and Sunset Boulevard have said they will also be expanding.

“We are going to see declining fast food prices and promotions like ‘coinoffers’ from McDonalds,” Marcus Schmidt, an associate professor at the Copenhagen Business School, told Søndagsavisen. “The chains will take part in a major competition and they have big muscles and many cards to play.”

Changing habits
The fast food wars are a symbol of the population’s changing eating habits, as more and more people are eating away from the home and on the move.

“We strongly believe there is room for new chains and expansions of existing franchises,” said Pia Tobberup, the press officer for McDonald’s Denmark. “We are fighting for the same customers, so we won’t be letting up.”

Enjoy every sandwich
The competition will be especially tough for the Danish company Sunset Boulevard, which now finds itself going head-to-head with sandwich giant Subway, the world’s largest fast food chain in terms of the number of restaurants.

“The competition will of course affect both our price and products, so we will have to be on our toes,” said Kristian Scheef Madsen, the head of Sunset Boulevard.

“But the market is favourable, and we are very hopeful.”