Rabobank: Foodservice Industry Continues to Suffer from Coronavirus Outbreak

The coronavirus has had a huge impact in China, and with the virus still not under control, the foodservice industry will continue to suffer. Therefore, it is very likely that 2020 will be a difficult year.

China’s Foodservice Industry Continues to Suffer

The coronavirus outbreak will continue to impact the foodservices industry, as many of the foodservice stores, such as Starbucks, Haidilao, McDonald’s, and Yum China remain closed until further notice. With no clear sign that things will get back to normal soon, we estimate that the 50%-80% revenue losses felt during the Chinese New Year could last longer. Table 1 below shows the industry’s 2020 sales growth based on the 50%-80% revenue losses model, lasting...

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