Because Pizza Hut was first developed in China. There are a few reasons why Pizza Hut is expensive in China, namely: the earliest development, currency differences, and the impact of rent.
The first reason, the earliest development.One of the reasons that affects the pricing of Pizza Hut in the country is the development. While Pizza Hut was not particularly early in the country, or in the emergence of food such as pizza, his emergence was to fill a gap in the domestic market lack of quality food.
When a new brand has both the strength and the ability to fill that gap, people will generally accept it, even if it's priced more expensively.
Because Pizza Hut entered the domestic market at a better time and earlier, its pricing was more expensive.
The second reason, the difference in currency.Many people may feel that a Pizza Hut meal in the United States will be very cheap, but the domestic equivalent of the yuan is very expensive. This is because in foreign countries to earn is the dollar, spend is the dollar; while in the country to earn is the yuan, spend is the yuan.
So in comparison, the difference in currencies and the exchange rate can make Pizza Hut look very expensive at home. But in fact, Pizza Hut's pricing in the domestic market is not considered high-end, but rather more popular and slightly higher.
So that's the second reason.
The third reason is the impact of rent.Most of the stores rented by Pizza Hut in China are in very developed areas. And this will face a problem, expensive rent! Want to earn back the rent, the fastest and most direct way, that is to increase the selling price of food.
And in the United States, in addition to developed areas, there are also Pizza Hut in underdeveloped areas, and their rent is relatively cheap and acceptable. So their Pizza Hut pricing will fluctuate up and down according to the local rent. But rents in the country fluctuate less, so it makes the food can get expensive.
So what are your thoughts on this?