Yum China is to close one of its three Chinese fast-food brands, citing the impact of the Covid-19 pandemic on sales. 

The 17-year-old East Dawning business had already shrunk to around five stores by the end of last December. It was one of three banners the US-owned business was relying on to build a Chinese-themed business alongside its western networks of KFC and Pizza Hut. Launched in Shanghai in April 2005, it grew to about 30 stores by 2012, but the concept failed to take off. 

Back in April 2020, Yum China bought a controlling interest in the casual dining franchise Huang Ji Huang. At the time, it said it would establish a Chinese-dining business unit comprising Little Sheep, East Dawning, and the new acquisition. 

This week, the Shanghai Observer reported that East Dawning’s website was offline with a notice saying it was being upgraded. The phone number for franchise enquiries was disconnected.  

Local industry sources told the Shanghai Observer that a lack of clear market positioning for the brand and increasing local competition were likely behind the brand’s demise, in addition to any impact from the pandemic.