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Yum China's low-price strategy pay off as diners tighten their purse strings

HONG KONG -- Yum China Holdings, the operator of KFC and Pizza Hut chains in the mainland, is keeping prices low to lure increasingly cost-conscious consumers to boost traffic and revenue amid a slowing economy.

"We have strategically enriched our menus with entry price point products to attract incremental customers," CEO Joey Wat told analysts during an earnings call on Wednesday. Local consumers are getting "more rational and price-sensitive in the current economy," she added.