(Yicai Global) Nov. 12 -- Popular Chinese milk tea brand Sexy Tea has been forced to close a large number of stores for the third time this year due to another sporadic outbreak of the Covid-19 pandemic.

Sexy Tea has temporarily shut 80 outlets in its base of Changsha, central Hunan province to lessen the impact of the pandemic on its operations, the company said yesterday. They will reopen once the wave has subsided.

The move is wise and rational, said food industry analyst Zhu Danpeng. The recurrent pandemic deters social activities, which reduces footfall, so the firm’s strategy is in line with its situation, he added.

The teahouse chain, which runs outlets in Changsha and Changde in Hunan province as well as Wuhan in central Hubei province, had to temporarily close 300 stores in the first quarter due to the pandemic and more again in July.

The company will send some of the Changsha employees to other cities in the province such as Liuyang, Zhuzhou and Yueyang to open new outlets, it said on Nov. 7.

Sexy Tea has secured four rounds of financing since it was set up in 2013 and is said to have a market value of CNY20 billion (USD3.12 billion).

Editor: Kim Taylor