Bird flu in China affects sales at fast-food chains

Bird flu in China affects sales at fast-food chains

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In July 2013, China’s sales have been majorly hit by bird flu scare and the economic slowdown. Due to these conditions, the sales of some of the Western fast-food chains in China have been affected. The same-store sales of Yum! Brands Inc in China have decreased by an estimated 13 percent year-on-year in July 2013.

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On August 12, 2013, Yum! Brands said that there has been a decline of about 16 percent at KFC and just 3 percent growth at Pizza Hut. Even McDonald’s – one of the main rivals of Yum! Brands in China – faced a decline in sales. The US-based corporation said on August 8, 2013, that comparable sales in Asia-Pacific, Africa and the Middle East decreased 1.9 percent in July 2013.

This also reflects negative results in Japan, China and Australia. The economic growth slowdown in China might be one of the major reasons behind the decline in sales. Some analysts said that McDonald’s faced the downfall due to the shift in timing of Ramadan.

During the month of Ramadan, Muslims all across the globe fast. Li Weihua, deputy director of the franchise research center of the China University of Political Science and Law said that the economic slowdown resulted in weak consumption.

Photo Credits: Blog CND