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KFC-owner Yum sales plunge as China Covid cases surge KFC-owner Yum sales plunge as China Covid cases surge
(about 2 hours later)
Some KFC shops in China are only offering takeaway servicesSome KFC shops in China are only offering takeaway services
The owner of KFC and Pizza Hut said sales plunged by 20% in the first two weeks of March as a surge of new Covid cases spread across China.The owner of KFC and Pizza Hut said sales plunged by 20% in the first two weeks of March as a surge of new Covid cases spread across China.
Yum China said "the situation has rapidly deteriorated" as regional lockdowns have been put in place to stem the outbreak.Yum China said "the situation has rapidly deteriorated" as regional lockdowns have been put in place to stem the outbreak.
More than 1,100 of its stores are temporarily closed or offering takeaway and sales are "still trending down".More than 1,100 of its stores are temporarily closed or offering takeaway and sales are "still trending down".
China's lockdowns are among its biggest since the beginning of the pandemic.China's lockdowns are among its biggest since the beginning of the pandemic.
They include the Jilin province - home to companies such as carmakers Toyota and Volkswagen - as well as technology hub Shenzhen as the number of new infections of the Omicron variant of Covid rose.They include the Jilin province - home to companies such as carmakers Toyota and Volkswagen - as well as technology hub Shenzhen as the number of new infections of the Omicron variant of Covid rose.
Yum China said: "Entering March, the situation has rapidly deteriorated with the highly transmissible Omicron variant causing outbreaks across China, including economically important regions of Guangdong, Shanghai, Shandong and Jilin."Yum China said: "Entering March, the situation has rapidly deteriorated with the highly transmissible Omicron variant causing outbreaks across China, including economically important regions of Guangdong, Shanghai, Shandong and Jilin."
It added: "Our operations are significantly impacted by the latest outbreaks and the tighter public health measures which resulted in a further reduction of social activities, travelling and consumption."It added: "Our operations are significantly impacted by the latest outbreaks and the tighter public health measures which resulted in a further reduction of social activities, travelling and consumption."
Toyota, Volkswagen and iPhone-maker Foxconn have been forced to close operations in affected regions due to lockdowns.Toyota, Volkswagen and iPhone-maker Foxconn have been forced to close operations in affected regions due to lockdowns.
Businesses shut as China widens Covid lockdownsBusinesses shut as China widens Covid lockdowns
KFC faces boycott in China over meal toy promotionKFC faces boycott in China over meal toy promotion
There are concerns the restrictions could have an impact on global supply chains.There are concerns the restrictions could have an impact on global supply chains.
But Yum China's chief executive Joey Wat, said: "Our robust supply chain management has shielded us from material business disruptions."But Yum China's chief executive Joey Wat, said: "Our robust supply chain management has shielded us from material business disruptions."
The company said it had more than doubled the number of stores it had closed or restricted to take-out services from 500 in January to 1,100 in March. "What you see is a ghost city"
Restaurateur Birol Dincli, who owns three steakhouses in Shenzhen's Futian district, expects the situation to be even worse this time around compared to when the Covid pandemic began in 2020.
Restaurateur Birol Dincli has been forced to shut his steakhouses
All restaurants in the Futian business district have been ordered to close. But they are also barred from offering takeaway or delivery services during the lockdown, said Mr Dincli.
"What you see is a ghost city," he told the BBC. "Everything is shut."
Although the lockdown in Shenzhen is set to end on 20 March, Mr Dincli reckons it will go on for much longer. He has asked some of his 30 employees to return to their hometowns to wait out the surge.
"In 2020, we faced the same problem so they are understanding. We motivate them to just wait and (be on) standby," he said.
"Let's see what will happen and then we will keep going."
Yum China said it had more than doubled the number of stores it had closed or restricted to take-out services from 500 in January to 1,100 in March.
Mr Wat pledged: "We will keep our restaurants open and provide food services to customers wherever it is possible and safe to do so."Mr Wat pledged: "We will keep our restaurants open and provide food services to customers wherever it is possible and safe to do so."
All 24 million residents of the north-eastern Jilin province were placed under quarantine orders on Monday. People are banned from moving around and anyone wanting to leave the province must apply for police permission.All 24 million residents of the north-eastern Jilin province were placed under quarantine orders on Monday. People are banned from moving around and anyone wanting to leave the province must apply for police permission.
In the Jilin city of Changchun, residents must stay at home. Only one person from each household is allowed to leave to buy food and other necessities every two days.
Some 12.5 million people living in Shenzhen - dubbed China's Silicon Valley - are also living under a five-day lockdown.Some 12.5 million people living in Shenzhen - dubbed China's Silicon Valley - are also living under a five-day lockdown.
Businesses in many of the affected regions have closed or are having their employees work from home.Businesses in many of the affected regions have closed or are having their employees work from home.
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The BBC's Stephen McDonell visited Wuhan ahead of the anniversary of the world's first Covid-19 lockdownThe BBC's Stephen McDonell visited Wuhan ahead of the anniversary of the world's first Covid-19 lockdown