(Yicai Global) March 7 -- Food and beverage chain giant Yum China has shut its 17-year-old Chinese fast food brand East Dawning because of the Covid-19 pandemic, according to the Shanghai Observer.

“The website is being upgraded. Stay tuned,” the report yesterday noted East Dawning’s website as saying, adding that the phone number to join its franchise is already dead.

Yum China revealed the plan last month and according to the company’s annual report there were five East Dawning stores in China as of Dec. 31.

Yum China owns several well-known food and beverage brands such as KFC and Pizza Hut. East Dawning was Yum China’s first Chinese fast-food brand, which opened its first outlet in Shanghai in April 2005 and had around 30 stores in China as of 2012.

East Dawning’s business performance has been lackluster. Compared with other brands under Yum China, East Dawning has not been able to create a scale effect, Shanghai Observer said, citing an industry insider.

Besides Covid-19, the reasons for East Dawning’s failure are lack of clear market positioning and star products as well as increasing local competition, it added.

Yum China’s net profit surged 26 percent last year to USD990 million and operating income rose 19 percent to USD9.8 billion, per its annual earnings report released on March 1.

The firm’s brand strategy will focus on driving the growth of core brands as well as emerging brands represented by Lavazza, Yum China noted.

Editor: Peter Thomas