Flavour Foods Runs the Hungry Cow, a Chain of Fast

Multiple Choice

Flavour Foods runs The Hungry Cow, a chain of fast food restaurants located all over the country. The chain has a loyal customer base and is well-known for its signature dishes like the Big Bite Burger, Springy Fries, and the Orange Float. The company is faced with a critical decision: Should it expand its operations into China? Which of the following, if true, would strengthen the argument for competing in the Chinese market?

A) Changes in exchange rates can affect the value of sales made in different countries.
B) Even global brands typically choose to tailor their offerings according to the tastes of consumers in different countries.
C) The Big Bite Burger has a higher selling price than other items on The Hungry Cow's menu, but it is not the most profitable item because of the cost of its ingredients.
D) The Hungry Cow's research indicates that reaching new customers in domestic markets will be more expensive than doing so in emerging markets.
E) Chinese companies tend not to pursue the franchise option when attempting to expand into other countries.