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The Latest on Yum! Brands’ Response to the Coronavirus

Publish date April 09, 2020

Yum! is monitoring and following guidelines from health authorities worldwide regarding the novel coronavirus (COVID-19) to keep its employees, franchisees, customers and communities safe. This page will be updated with our latest actions and commitments.

Update Thursday, April 9

Yum! expands global health and safety measures to protect employees

We’re incredibly grateful for KFC, Pizza Hut, Taco Bell and The Habit Burger Grill restaurant team members for serving customers and feeding communities during this challenging time.

Our restaurant team members are the heart of our business and their health and safety is our top priority. After closely monitoring developments related to COVID-19, we’re expanding our global health and safety measures following guidance from public health authorities worldwide, including new recommendations by the Centers for Disease Control and Prevention, to further protect our people, customers and brands. These measures include:

Low-contact service experience to protect our customers and employees – KFC, Pizza Hut, Taco Bell and The Habit Burger Grill continue to be focused on making food available safely and with low contact through drive-thru, carryout, curbside pick-up, where available, and Contactless Delivery. We are using our global scale and industry expertise to continue to evolve and refine our practices based on the latest guidance and shifting consumer expectations, including implementing physical distancing measures in the restaurants where possible.

Safe workplace measures – KFC, Pizza Hut, Taco Bell and The Habit Burger Grill are making thermometers available and implementing temperature checks of restaurant team members in the U.S. over the coming weeks. In addition, some KFC and Pizza Hut restaurants in the U.S. plan to install counter shields to add a barrier between team members and customers in restaurants where carryout remains available. Many international markets plan to or have already adopted these policies.

As previously announced, we’ve also further strengthened our already stringent global hygiene, cleaning and sanitation procedures in all restaurants including increasing the frequency of cleaning and sanitizing high-touch areas, reinforcing our strict handwashing, health and wellness policies and ensuring hand sanitizer is available.

Personal protective equipment for restaurant employees

  • Protective facial coverings. KFC, Pizza Hut, Taco Bell and The Habit Burger Grill have started requiring restaurant team members to wear non-surgical grade face masks or coverings as an added protection in all our U.S. restaurants and internationally, where facial coverings are recommended or required by local health authorities. We are also allowing restaurant team members to temporarily wear their own cloth face coverings until we secure enough non-surgical grade face masks to supply the global system.
  • Single-use disposable gloves. All guest-facing restaurant team members in the U.S. will wear single-use, disposable gloves during their shifts, in addition to team members who are already required to wear gloves when handling and preparing food after they’ve thoroughly washed and sanitized their hands.

Company-owned restaurant employee pay – In our nearly 900 U.S. company-owned KFC, Pizza Hut, Taco Bell and The Habit Burger Grill restaurants, we’re paying employees who are required to stay at home for their scheduled or regularly scheduled hours during their time away from work.

Restaurant employee medical relief fund – Through the Yum! Brands Foundation’s Global Employee Medical Relief Fund, we’re also providing financial support for restaurant employees at company and franchise-owned restaurants who are diagnosed with or who are caring for someone diagnosed with COVID-19. Yum! and brand employees and others can also donate to the Fund by going to www.yum.com/giverelief. Any funds that are raised that aren’t allocated to restaurant team members will be used to support other front-line workers and those facing food insecurity.

Update Monday, March 30

Yum! Brands expands efforts to support Restaurant General Managers and employees across the globe impacted by COVID-19

As recognition for the vital role that our Restaurant General Mangers (RGMs) play in inspiring and leading successful restaurant teams, Yum! Brands has announced a one-time $1,000 bonus for nearly 1,200 RGMs at company-owned KFC, Pizza Hut, Taco Bell and The Habit Burger Grill restaurants around the world. As the most important leaders in our brands who lead with heart and courage to ensure the health and safety of team members, customers and restaurants, RGMs are critical to getting our company through the COVID-19 crisis. This bonus is intended to acknowledge their efforts managing teams and maintaining business continuity during these challenging times.

In addition, Yum! Brands Foundation recently launched a Global Employee Medical Relief Fund to provide financial support for restaurant employees at company and franchise-owned stores who are diagnosed with or who are caring for someone diagnosed with COVID-19. Today, Yum! Brands announced it is directing additional money toward the Fund to help employees and franchise associates during this difficult time. Yum! and brand employees and others can also donate to the Fund by going to www.yum.com/giverelief. Any funds that are raised that aren’t allocated to restaurant team members will be used to support other front-line workers and those facing food insecurity.

Update Thursday, March 26

Keeping Restaurants Open Safely and Serving Food People Trust

 

Update Wednesday, March 25

Yum! Brands Implements Next Phase of COVID-19 Response

Globally Focused on Employees, Low-Contact Options for Customers and Support for Franchisees and Communities

Louisville, Kentucky, March 25, 2020 – Yum! Brands, Inc. (NYSE: YUM) today provided an update on the next phase of its response to the COVID-19 pandemic.

“Working together, we can limit the spread of COVID-19 while offering convenient, affordable food in a low contact environment,” said David Gibbs, CEO Yum! Brands. “But our employees – like millions of others – are worried and our franchisees are under stress. We need to support them so they can be there for our customers. As the situation changes rapidly, KFC, Pizza Hut, Taco Bell and The Habit Burger Grill will keep finding ways to help.”

The next phase of Yum! Brands’ COVID-19 response includes the following:

1. Supporting Impacted Employees

As employees worry about the pandemic’s impact on their lives, Yum! Brands is enhancing the benefits available to them during this difficult time.

Yum! Brands is launching a global medical relief fund to provide financial support for restaurant employees at company and franchise-owned stores who are diagnosed with or who are caring for someone diagnosed with COVID-19.

In U.S. company-owned KFC, Pizza Hut, Taco Bell and The Habit Burger Grill restaurants, the Company will pay employees who are required to stay at home, or who work at a restaurant that is closed, for their scheduled or regularly scheduled hours during their time away from work. Yum! is actively working with its franchise partners to encourage a similar approach.

2. Keeping Restaurants Open Safely and with Low-Contact Options

As the COVID-19 situation evolves, KFC, Pizza Hut, Taco Bell and The Habit Burger Grill are focused on making food safely available in a low-contact, convenient way that protects both customers and employees, following local government and public health guidance.

The Company has further strengthened its already stringent hygiene, cleaning and sanitation procedures and has shifted to low-contact options for customers around the world:

  • KFC, Pizza Hut, Taco Bell and The Habit Burger Grill are focused on making food available safely and with low contact through delivery, drive-thru or curbside pick-up, where available, for customers and employees, which is critical in a social distancing environment.
  • Pizza Hut is now offering Contactless Delivery in the U.S. and 48 countries internationally, where customers can request online or through Pizza Hut’s mobile app to have their pizza left at the door upon delivery.
  • In the U.S., KFC and Taco Bell also offer Contactless Delivery through the Grubhub partnership.

3. Help for Franchise Business Owners

Yum! Brands’ owner-operators, a driving force in the economy, are managing through a period of unprecedented disruption. To this end, the Company established a Global Franchise Health and COVID-19 Support Team to help KFC, Pizza Hut, Taco Bell and The Habit Burger Grill franchisees navigate business continuity.

In the U.S and internationally, the Company is working with franchisees who need access to more capital and are in good standing to provide assistance, including grace periods for certain near-term payments where necessary. In the U.S., the Company is also allowing franchisees to defer all 2020 capital obligations for remodels and new unit development through the end of the year.

4. Giving Back to Communities

Around the world, Yum! and its brands are working to serve front-line workers, families and communities impacted by COVID-19. In the U.S. and internationally, the Yum! Foundation is providing financial support to more than 20 food banks.

Highlights in the U.S. include:

  • KFC is donating to its existing charity partner, Blessings in a Backpack, to help feed 100,000 children affected by mandatory school closures across the U.S. The brand is also delivering buckets of chicken to healthcare workers and hospitals in its hometown. More information is here.
  • Pizza Hut is providing pizzas to front-line healthcare workers and essential personnel. With partner First Book, Pizza Hut is providing books to families in need and kids at home through its longstanding BOOK IT! program. More information is here.
  • Taco Bell is deploying its Taco Truck to feed front-line healthcare workers and other essential personnel and donating to local food banks. The brand’s latest measures can be viewed here.
  • The Habit Burger Grill is providing free meals to the medical community, first responders and volunteers through its food trucks and the Second Harvest Food Bank.

About Yum! Brands
Yum! Brands, Inc., based in Louisville, Kentucky, has over 50,000 restaurants in more than 150 countries and territories primarily operating the company’s brands – KFC, Pizza Hut, and Taco Bell – global leaders of the global leaders of the chicken, pizza, and Mexican-style food categories. The Company’s family of brands also includes The Habit Burger Grill, a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. Worldwide, the Yum! Brands system opens over nine new restaurants per day on average, making it a leader in global retail development. In 2019, Yum! Brands was named to the Dow Jones Sustainability North America Index and ranked among the top 100 Best Corporate Citizens by Corporate Responsibility Magazine.

Forward-Looking Statements
This Current Report on Form 8-K includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “believe,” “estimate,” “will,” “continue,” or similar terminology. These statements include, but are not limited to, statements related to the potential impact of the COVID-19 pandemic. These statements are based on and reflect our current expectations as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations will prove to be correct. Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: food safety and food borne-illness issues; health concerns arising from outbreaks of viruses or other diseases; the success of our franchisees and licensees; the success of our transformation initiatives, including our refranchising strategy; our significant exposure to the Chinese market; changes in economic and political conditions in countries and territories outside of the U.S. where we operate; our ability to protect the integrity and security of individually identifiable data of our customers and employees; our ability to successfully implement technology initiatives; our increasing dependence on digital commerce platforms and information technology systems; the impact of social media; our ability to secure and maintain distribution and adequate supply to our restaurants; the success of our development strategy in emerging markets; changes in commodity, labor and other operating costs; pending or future litigation and legal claims or proceedings; changes in or noncompliance with government regulations, including labor standards and anti-bribery or anti-corruption laws; tax matters, including changes in tax laws or disagreements with taxing authorities; consumer preferences and perceptions of our brands; changes in consumer discretionary spending and general economic conditions; competition within the retail food industry; and risks relating to our significant amount of indebtedness. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in this Current Report on Form 8-K are only made as of the date of this report and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. Additional information concerning risks and uncertainties that could cause actual results to differ materially from those indicated by forward-looking statements is contained in our filings with the Securities and Exchange Commission, including the information set forth under the captions “Risk Factors” and “Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K.

Update Wednesday, March 18

KFC, Pizza Hut and Taco Bell Update on Restaurant Operations in the U.S.
We’re monitoring the COVID-19 situation closely, supporting our franchisees, thinking ahead and making sure we have the best plans in place to protect our people and customers, as their health and safety is our number one priority. As the COVID-19 situation evolves, KFC, Pizza Hut and Taco Bell are complying with local and state health and governmental policies and mandates, which vary across the country. In addition, KFC, Pizza Hut and Taco Bell restaurants in the U.S. will offer drive-thru, carryout and delivery services, which are important ways to make food available safely and with low contact in a social distancing environment.

More information on each brand’s response to COVID-19 can be found below.

KFC U.S.
Update on KFC U.S. restaurant operations
Letter from KFC U.S. President

Pizza Hut U.S.
Update on Pizza Hut U.S. restaurant operations

Taco Bell U.S.
Update on Taco Bell U.S. restaurant operations

Update Thursday, March 12

As the COVID-19 (coronavirus) situation continues to rapidly evolve, we know it is increasingly top of mind for our employees, franchisees and customers around the world. Our number one priority right now – and always – is the health and safety of our employees, franchisees and customers.

As a global company, we’re closely monitoring the situation and the evolving intelligence from public health, travel and national security authorities. We’re following the guidance of the World Health Organization (WHO), U.S. Centers for Disease Control and Prevention (CDC), U.S. Department of State and other similar organizations in countries where we operate to ensure we have the best plans in place to protect our people, our customers and our brands.

First and foremost, we and our franchisees have industry-leading action plans, standards and policies in the restaurants to prevent and limit the spread of COVID-19. Our Global Food Safety team has reinforced our already stringent protocols in all restaurants emphasizing prevention, hygiene, cleaning and sanitation. We are in contact with our leaders in every country to provide additional resources, guidance and support.

KFC, Pizza Hut and Taco Bell have increased health and safety measures in restaurants around the globe in response to this dynamic situation, including:

  • Increasing the frequency of cleaning and sanitizing throughout the restaurants
  • Focusing on sanitizing high-touch areas such as front counters, pin pads, tables, trays, etc.
  • Reinforcing our already strict sanitation, handwashing and health and wellness policies for employees
  • Making every effort to ensure hand sanitizer is always available in the restaurants for team members and customers
  • Creating feedback channels for restaurant teams and franchise partners to help quickly answer questions and provide any necessary guidance to the restaurants

In addition, our brands are working with delivery partners around the globe to prepare for an increase in demand for online ordering and delivery services.

Secondly, KFC, Pizza Hut and Taco Bell will continue to enforce their already strict procedures around illness reporting for restaurant team members. Should one of our restaurant team members become directly exposed to or diagnosed with a confirmed case of COVID-19, the affected employees will be required to self-quarantine. We’ll work with local health authorities, thoroughly clean and sanitize the restaurant, and if an employee is confirmed, close the restaurant until it is safe to reopen. We’re working closely with our franchisees around the world to reinforce this strict policy.

Because our people are the heart of our organization, and we understand the impact these actions can have, at our company-owned restaurants, we’ll be paying employees who are required to self-quarantine, or who work at a restaurant that is closed, for their scheduled or regularly scheduled hours. We’re also encouraging our franchise partners to take a similar people-first approach.

Third, at our corporate offices and restaurant support centers, we’ve directed employees to postpone all nonessential business travel (and we’ve prohibited travel to highly-affected countries) while we continue to assess developments both abroad and in the U.S. Based on the dynamic nature of COVID-19, our global RSC offices also have plans in place so employees can work remotely as needed.

Our unrivaled people and culture are truly what make Yum! Brands unique. We are so appreciative of our teams and franchisees across the globe for their commitment to the well-being of every single person in the communities where we operate.

As the world’s largest restaurant company, our customers span ages, backgrounds and borders, and we remain committed to serving them in a way that protects their health and safety. Times like these are a reminder that we are all globally connected and each have a role to play in helping others. At Yum!, we are committed to doing just that.

David Gibbs
CEO, Yum! Brands, Inc

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