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February 12, 2020updated 13 Feb 2020 11:50am

Coronavirus outbreak: Burger King closes half of Chinese locations

Burger King has temporarily closed nearly half of its restaurants in China due to growing concerns over the deadly coronavirus outbreak in the country.


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Follow the latest updates of the outbreak on our timeline.

Burger King has temporarily closed nearly half of its restaurants in China due to growing concerns over the deadly coronavirus outbreak in the country.

The move was confirmed by the Restaurant Brands International, the parent company of the American fast-food restaurant chain.

Burger King has around 1,300 locations in China.

Restaurant Brands International CEO Jose Cil was quoted by Bloomberg as saying: “Most of the closures are being driven by local regulations. In some cases, malls are closing.”

The company is yet to determine the extent of the impact. However, it is anticipating a hit on its performance.

Cil added: “It’s too early to tell what impact, if any, it’s going to have on short-term performance or results.”

Burger King is not the first restaurant chain to shut its outlets in China due to the ongoing outbreak.

Yum China shut more than 30% of its stores temporarily as a step to prevent person-to-person transmission of the virus. Yum China is a licensee of KFC, Pizza Hut and Taco Bell brands in China.

Coffeehouse chain Starbucks has also closed around 2,000 restaurants and reduced operating hours in the Chinese market.

Both Yum China and Starbucks also warned of a significant impact on sales due to the outbreak.

Other US restaurant chains such as McDonald’s and KFC have also closed hundreds of their stores in China.

Meanwhile, the death toll from the new coronavirus reached 1,115 at the end of 11 February. The total number of infections exceeded 45,100.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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