COVID-19 Impact on Yum! Brands
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COVID-19 Impact on Yum! Brands May 27, 2020 based on market analysis and brand diversification by industry and geography.
The pandemic has affected every industry globally with the suspension of all non-essential activities primarily across the globe. Foodservice is one of the worst hit industries. The foodservice companies also need to be extra vigilant towards adhering to precautionary guidelines towards consumers safety along with the focus on creating a safe workplace for employee protection. Also, aim to overcome the loss with effective alternatives such as contactless – deliveries and POS (point-of-sale) units; increased delivery & drive thru services. The pandemic has initially impacted the profit sector such as dine-out and fast food restaurants, that constitutes sizeable amount of revenue share in company's sales. Operational changes may help the company to mitigate the loss by offering curb-side pick-ups and primarily transitioning from the on-premise model to off-premise operating model.
Scope
– The adverse impact of the pandemic in Yum! Brands' key markets will result in a decline in 2020 brand sales
– Global profit sector outlets are being hit by the COVID-19 outbreak – The large share of the company's sales from high-impact regions will affect its overall sales
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