Core Insights - Pricing strategy is crucial in the restaurant industry, as it directly influences consumer purchasing decisions and overall brand positioning [2][5]. Pricing Logic - McDonald's breakfast pricing is based on the average time customers spend eating breakfast, which is estimated to be 10-15 minutes, leading to a price point of 13.9 yuan for their breakfast combo [4][5]. - There is a positive correlation between the amount customers are willing to spend and the time they are willing to spend eating, with different meal times (breakfast, lunch, dinner, afternoon tea) having distinct average spending amounts [5][6]. Customer Spending Patterns - Average spending per meal varies by time of day: breakfast (10-15 yuan), lunch (30 yuan), and dinner (60-120 yuan), reflecting the time customers are willing to dedicate to each meal [5][6]. - Afternoon tea typically sees spending in the range of 15-30 yuan, aligning with the 15-30 minute break time [6]. Average Spending Metrics - The distinction between average ticket size (AC) and average per person spending (PPA) is important, as AC reflects the total transaction amount while PPA indicates individual spending [8][9]. - Understanding these metrics helps in analyzing consumer behavior and brand positioning within the market [11]. Market Segmentation - The Chinese restaurant market is segmented into two main categories and eight price tiers, with specific price points defining each tier for both formal and informal dining scenarios [12][14]. - Price tiers are based on average spending and dining duration, with clear distinctions made for different meal types [15]. Regional Variations - Average spending varies significantly across different regions in China, influenced by local income levels, disposable income, and consumer habits [18][21]. - The classification of average spending is dynamic and should be adjusted periodically to reflect changes in the Consumer Price Index (CPI) and actual consumer behavior [21][22]. Trends in Consumer Spending - There is a noticeable downward trend in average spending in the restaurant sector, which has implications for pricing strategies and market positioning [26][30]. - Historical comparisons with Japan's restaurant market suggest that economic recovery and consumer spending patterns may take time to stabilize [31][32].