China’s big food chains retreat from deep discounts

This comes after China’s competition regulator opened a formal probe into the intensifying rivalry among food delivery services last month. Credit: YIUCHEUNG / Shutterstock.com.

Leading restaurant and beverage operators in China are reportedly increasing prices and scaling back subsidies on food delivery platforms, signalling an end to aggressive discounts and price wars, Bloombergreported.

The shift follows last month’s move by China’s competition regulator to open a formal probe into the intensifying rivalry among food delivery services.

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According to the report, Yum China Holdings-operated KFC increased its delivery prices by an average of 0.8 yuan ($0.12) last month.

Coffee chain Cotti has also ended its “9.9 yuan a cup” promotion, with most delivery drinks now priced from 13.99 yuan and above.

Local media reports also indicate that Luckin Coffee has reduced the number of products sold at 9.9 yuan.

Separately, McDonald’s has raised some product prices in China by up to one yuan, while Japanese restaurant operator Saizeriya also increased prices last year, according to a local media report.

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China’s consumer market has faced intense price competition in recent years, as businesses reduce prices to attract cautious spenders in a weaker economic environment, according to the news agency.

The pressure escalated from April 2025, when a subsidy campaign erupted among food delivery platforms such as Alibaba Group Holding’s Taobao Shangou and Meituan.

The race drove prices to levels many in the industry viewed as unsustainable, with some coffees sold for 14 cents and meals for 50 cents.

While the subsidy campaigns pushed online order volumes to record highs, profitability weakened as heavy discounts and platform commissions weighed on earnings.

The latest increase in product prices and pullback in incentives signal a departure from the long-running price battles that hit restaurants, teahouses and cafés.