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January 30, 2020updated 13 Feb 2020 11:49am

McDonald’s closes 300 restaurants in China over coronavirus outbreak

US fast food chain McDonald's has closed 300 restaurants in Hubei province of China as the deadly coronavirus is spreading beyond the country’s borders.


Visit our Covid-19 microsite for the latest coronavirus news, analysis and updates

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Follow the latest updates of the outbreak on our timeline.

US fast-food chain McDonald’s has closed 300 restaurants in Hubei province of China as the deadly coronavirus is spreading beyond the country’s borders.

According to Chinese authorities, the death toll from the outbreak has reached 170 in the country, as of the end of 29 January.

McDonald’s has also set up an epidemic task force in response to the respiratory syndrome coronavirus outbreak, which originated in Wuhan.

McDonald’s CEO Chris Kempczinski was quoted by Deccan Herald as saying that the country accounts for 9% of all its restaurants, about 5% of sales and 3% of operating profit.

Kempczinski further added that the overall impact on profits would be fairly small if coronavirus remained relatively contained.

For McDonald’s, China has become one of its largest markets, where it has about 3,300 restaurants. The fast-food chain plans to open 1,500 more locations by 2022.

The latest move comes after Starbucks closed nearly 2,000 of its 4,292 restaurants in China and adjusted its operating hours in the Chinese market.

Authorities in China are currently dealing with the 2019 Novel coronavirus, which has affected several countries.

In response to this, China is also constructing a 1,000-bed hospital in Wuhan in ten days to treat patients infected with the coronavirus.

Global stock markets were affected by worries about the impact of coronavirus, as reports of cases in other countries raised fears that the outbreak is expected to spread worldwide.

World Health Organization (WHO) Director-General Dr Tedros Adhanom Ghebreyesus and China President Xi Jinping have agreed in a meeting in Beijing that WHO will send international experts to the country to work on increasing understanding of the outbreak to guide global response efforts.

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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