STRATEGIC PARTNERS
July 15, 2010
Despite all the growth new stores in China have provided Yum! Brands in 2009 and 2010, there's a disturbing trend on the rise for restaurants looking to pursue a similar strategy – rising labor costs, according to the Wall Street Journal.
From the story:
Yum is an outlier — few, if any, other major U.S. corporations are as leveraged to China, which supplied fully a third of Yum’s $421 million in global operating profit in the second quarter.
Still, Yum’s estimates on rising labor costs in China were a sobering indicator that the trend will sting for some foreign companies, at least in the short-term.
