Despite the arrival of the vaccine and the relative mobility that exists in different parts of the world in the face of much more relaxed confinement measures, the truth is that the fast food sector does not stop suffering. Large brands such as Pizza Hut, KFC, McDonald’s or Burger King have had to readjust their operations in hundreds of markets around the world in order to face a situation that still takes its toll.
The figures around the sector are key to the situation that many firms in the sector now suffer.
Some figures on what happened in the Mexican market make the problem clear. With regard to restaurants, a recent study signed by Fintonic revealed that, from the first case of coronavirus in Mexico, consumers reduced their spending in restaurants by 30.03 percent.
With this, the closings and layoffs were the constant for the sector. Thus, it is worth remembering a survey carried out by DataPlor, which found that 35.9 percent of the restaurants in the country said they had reduced their workforce to survive during the health contingency, in a scenario in which they reported low sales of between 85 and 90 percent.
The scenario is replicated around the world and has resulted in a large number of closings for many brands looking to adopt much more agile structures to face this new reality.
For example, a few months ago, Pizza Hut announced that it would shut down permanently near 300 locations as part of an agreement with the Yum Brands chain and NPC International.
As indicated by CNBC, until now Yum Brands is the company that owns Pizza Hut, while NPC was in charge of operating hundreds of the chain’s restaurants in the United States.
However, at the beginning of last July, NPC declared bankruptcy after going into debt with close to a billion dollars.
With this move, NPC would put about 927 Pizza Hut restaurants up for sale. Thus, as reported by a Pizza Hut spokeswoman, “in the event that NPC executes a sale of its Pizza Hut business, Pizza Hut’s approach would be to ensure that the new owners contribute to NPC’s Pizza Hut restaurants. a solid capital structure, a healthy balance sheet, a commitment to operational excellence and a growth mindset ”.
The real problem in this regard is that firms like KFC, Burger King or McDonald’s are now facing each other, the real rival is a consumer who refuses to spend.
People have taken their consumption to the interior of the home, both because of forced confinement and because of the search to save and prioritize health care.
Once again, it is enough to recognize what is happening in the Mexican market where, although more opportunities to eat have been generated, people have sought to cover them from home both for economy and convenience.
A Kanatar report reveals that in Mexico, 8.1 percent more occasions to eat were generated, mainly due to the fact that “people snack” between main meals, as they long for moments of pleasure and stimulation.
The truth is that in the face of this reality, people have spent 5.5 percent more time in the kitchen preparing breakfast, 1.4 percent more time cooking lunch, and 2.2 percent more time cooking dinner.
From Inc.com they have explained this phenomenon: “In many cases, people have simply been stocking up on food and have stayed at home. That’s not really surprising, but it’s a harsh reality for restaurants. In many cases, people are cutting fast food out of their budget as they face uncertainty about their own work. In other cases, people are anxious about the potential health risks of restaurants and are avoiding them. “
With this in mind, brands in the fast food sector have had to implement much more aggressive actions to get customers to look forward to their proposals.
The first to understand was Burger King, a firm that called on the consumer to consume in the establishments of its competition.
Now the note is given by KFC and Pizza Hut who in an unprecedented alliance will launch a product together.
Both brands have launched what is now known as Popcorn Chicken Pizza, a pizza created with Colonel Sanders’ chicken popcorn.
Although this product was initially launched in the UK last year, it was a limited edition that barely reached 10 markets for a definite time.
However, now both KFC and Pizza Hut have decided to partner and take their alliance to a joint advertising campaign that seeks to call customers who are still tough to consume.