Recent economic melt down does not seem to have spared any country, with demand from the consumer segment shrinking, affecting the manufacturing sector across the board. Restaurant sector generally is not seriously affected as food is an essential part of daily life but under a deteriorating economy frequency of eating away from home declines to some extent as reflected by lesser crowds and depleted turn over. Price wars are common amongst competitors offering same type of foods, especially in the organized sector. In Japan the chain restaurants serving beef bowls, local favorite foods, are reported to be vying with each other to attract customers through price reductions as high as 20-25% from normal fares.
"Japan's big three beef bowl restaurant chains, the country's answer to hamburger giants like McDonald's, are in a price war. It is a sign, many people say, of the dire state of Japan's economy that even dirt-cheap beef bowl restaurants must slash their already low prices to keep customers".
Price wars in India are more common with established brands like automobiles, mobile telephony, apparels, electronic goods etc but rarely seen in the food sector. Organized giants generally resort to price slashing to "kill" new entrants as they have deep pockets to sustain losses for a long time. But established brands do not compete with each other in price reduction though consumers often get these products at effectively cheaper prices through co-branding schemes or special sale schemes for a limited period. Thanks to modern package technology and relaxed "Standards of Weights and Measures Act" food industry is still able to safeguard their margins through larger looking packs and lesser weighing contents.
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