Yum´s KFC has lost substantial turnover, as anti-US protest turn against the fast food chain caused by the tension in the South China Sea, says business analyst Shaun Rein to Reuters. The stores have become a lightning rod for nationalistic feelings and lost sometimes up to 25%.
Reuters:
Some analysts questioned the extent of the impact of the sporadic protests in China, where Yum is also battling tough competition and a weak economy.
But Shaun Rein, managing director of Shanghai-based China Market Research Group, said Yum’s KFC, with more than 5,000 stores across China, was a lightning rod for anti-U.S. protests.
“We estimate sales dropped 15 to 25% in some of the cities because a lot of the protestors were looking for a big American brand to attack, to protest against. So they did have to shut a lot of stores in North-east China,” he said.
“The big challenge for them is, will there be lingering anti-American sentiment?”
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.
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