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 weaken the argument for competing in the Chinese market?
A) An American fast food chain found that the time to recoup its investments in China was greater under the franchise model as opposed to the corporate chain store model.
B) Chinese government policies can impose lengthy delays on businesses seeking food sale licenses.
C) Studies show that modern Chinese consumers are more likely than previous generations to dine outside the home.
D) When choosing a restaurant, Chinese consumers seek benefits beyond simple food quality.
E) Expanding into every market within China would require more resources than The Hungry Cow has at its disposal.
Correct Answer:
Verified
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