The world’s Top 25 most valuable restaurant brands could lose up to $33 billion worth of brand value as a result of the COVID-19 pandemic, according to the latest Brand Finance Restaurants 25 2020 report. Brand Finance’s analysis shows that the restaurant sector is a heavily impacted industry globally and could face a potential 20% loss in brand value.
Looking beyond the restaurant sector, the value of the 500 most valuable brands in the world, ranked in the Brand Finance Global 500 2020 league table, could fall by an estimated $1 trillion as a result of the Coronavirus disease (COVID-19) outbreak.
Brand Finance has assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on Jan. 1. The likely impact on brand value was estimated for each sector. The industries have been classified into three categories – limited impact (minimal brand value loss or potential brand value growth), moderate impact (up to 10% brand value loss), and heavy impact (up to 20% brand value loss) – based on the level of brand value loss observed for each sector in the first quarter of 2020.
“It is no surprise that the restaurant sector has borne the brunt of the global Coronavirus lockdown, with closures destroying sales and social distancing measures changing the way in which customers dine for the foreseeable future. With consumer habits changing towards delivery and collection, it is yet to be seen how the industry will look in the coming year. More dynamic brands that respond and transform in response to this shift, should record a more positive movement in their brand value than those that are slow or reluctant to change,” says Richard Haigh, Managing Director, Brand Finance.