The Hungry Cow, a chain of American fast-food restaurants, has recently experienced a great deal of domestic growth. Now its managers are trying to decide whether to expand the company into China to tap into a brand-new market. Which of the following would indicate that The Hungry Cow should NOT expand into China?
A. When choosing a restaurant, Chinese consumers seek benefits beyond simple food quality.
B. Studies show that modern Chinese consumers are more likely than previous generations to dine outside the home.
C. Expanding in to every market within China would require more resources than The Hungry Cow has at its disposal.
D. Chinese authorities impose lengthy delays on businesses seeking food licenses and often deny those licenses completely.
E. An American fast food chain found that the time to recoup its investments in China was the same whether the franchise model or the corporate chain store model was used.
Answer: D