Business Why MOS Burger never fought the burger price wars

The company's resurgence marks a sharp turnaround from the early 2000s, when it struggled during Japan's deflationary period. McDonald's pushed a low-price strategy at the time, cutting the price of its hamburger to as low as 59 yen, while Mos refused to join the discounting race. That decision left Mos with an image of being relatively expensive and contributed to weak earnings. In 2004, a Big Mac cost 260 yen, while the standard Mos Burger was priced at 300 yen. That price gap has since narrowed and even reversed in some cases as raw material costs rose across the industry. A Big Mac has climbed above 500 yen, while Mos has also raised prices. Customers now say McDonald's feels more expensive than before, making Mos seem less like an unusually high-priced option. Price, however, is only one reason behind Mos Burger's recent strength. Under President Eisuke Nakamura, who took office in 2016, the company has pushed an aggressive strategy aimed at increasing points of contact with customers. Nakamura has introduced a wide range of products, from multiple shrimp burgers released at the same time to a 6,000 yen eel rice burger developed through a Japanese restaurant-style approach. One of the company's key strategies is what it calls price gradation, offering products across a broad range of price points from everyday items to small luxuries. In one recent campaign, Mos sold three shrimp-based burgers at different price levels, including its regular shrimp cutlet burger, a limited-time avocado shrimp cutlet burger and the limited-quantity shrimp fry burger priced at 780 yen, featuring two large pieces of fried shrimp.

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thomas said:

Yep, me too. I haven't been to Mosburger's in two decades; my impression has always been "too tiny, too pricey." Perhaps it's time to give it another shot.

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