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The changes facing fast-food companies

Fast food was once thought to be recession-proof. When consumers need to cut spending, cheap meals like Big Macs and Whoppers become even more attractive. As a result, fast-food chains have survived the recession better than their more expensive competitors. In 2009 sales at full-service restaurants in America fell by more than 6%, but total sales remained about the same at fast-food chains. In some markets, such as Japan, France and Britain, total spending on fast food increased.

But in this ongoing recession(萧条), which is more severe, not all fast-food companies have been as fortunate. Many, such as Burger King, have seen sales fall. In the recession, while some people trade down to fast food, many others eat at home more frequently to save money. Smaller fast-food chains in America, such as Jack in the Box and Carl’s Jr., have been hit particularly hard in this downturn because they cut back spending on advertising.

In face of such challenges, some fast-food companies have sacrificed their own profits by trying to give customers better value. During the recession companies set prices low, hoping to tempt more customers through the door. But in many cases that strategy doesn’t work. Some companies are rethinking their strategies. KFC has launched a chicken sandwich that costs around $5 to attract consumers away from $1 specials.

Companies are also trying to get customers to buy new and more items, including drinks. McDonald’s started selling better coffee as a challenge to Starbucks. Its “McCafe” line now accounts for an estimated 6% of sales in America. As fast-food companies shift from “super size” to “more buys”, they need to keep customer traffic high throughout the day. Many see breakfast as a big opportunity, and not just for fatty food. McDonald’s has started selling porridge in America, because the profits can be high.

But what about those growing waistlines? So far, fast-food firms have cleverly avoided government regulation. By providing options like salads and low-calorie sandwiches, they have at least given the impression of doing something about helping to fight obesity(肥胖). These offerings don’t necessarily lead to profit loss, as they can broaden the appeal of stores to groups of diners that include some people who don’t want to eat a burger.

But calls for tougher government regulation never wear down. This year Congress passed America’s health-reform bill, which requires restaurant chains with 20 or more stores to put the calorie-content of items they serve to the menu. And the recent proposal by a county in California to ban McDonald’s from including toys in its high-calorie “Happy Meals”, because law makers believe it attracts children to unhealthy food, suggests that fast-food companies will have to continue trying something new.

The changes facing fast-food companies

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