McDonald’s Closures in Response to Coronavirus in China
McDonald’s recently announced that it would be closing 300 stores in China due to the rapid spread of the novel coronavirus. The number is the most significant one of the restaurants the fast food giant has ever had to close in the country. Despite spending billions of dollars in China over the past two decades, McDonald’s presence in the country still needs to grow compared to KFC. The main issue has been the need for more local adaptability in its menu (Davies, 2020).
The closures come as China struggles to contain the virus, which has already infected thousands and caused hundreds of deaths. The restaurant closures constitute a significant disruption for McDonald’s, which has been in China since 1990 and now has over 2,500 restaurants. The restaurants will stay closed until further notice, the firm stated, adding that the closures were required to ensure the safety of both patrons and staff. This announcement follows the closure of numerous other businesses in China as the country attempts to contain the spread of the virus. Many companies, including retail stores, have been forced to close due to the outbreak, and travel restrictions are in place.
Positive and Negative Influences of the Event on the Company
The closures have had a significant impact on McDonald’s operations in China. The company said it also offers employees affected by the closures access to medical benefits and other financial assistance. The coronavirus remains a significant challenge for China and McDonald’s (Davies, 2020). The company has had to close 300 restaurants in the country due to the outbreak, which will significantly impact its operations there.
Closures are necessary to protect the safety of customers and employees, and the company offers assistance to affected employees. However, McDonald’s has been focusing on opening more locations in smaller cities and rural areas and expanding its delivery services. The ramifications of McDonald’s business issues in China are both positive and negative.
Reference
Davies, R. (2020). McDonald’s shuts 300 restaurants in China as coronavirus spreads. The Guardian. Web.
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