Yum subsidiary closes in China

US fast food chain A&W All American Restaurants has closed in China after the refusal of parent company Yum Brands to assist mainland franchises with around US$605,000 in debts.

Yum, which also owns KFC, Pizza Hut and Taco Bell, purchased A&W in 2001, when it had already established China franchises under US company Yorkshire Global Restaurants. Yum said that the eight China restaurants' licenses had been terminated before they were purchased by Yum.

Yum has opened more than 1,000 KFC restaurants in China, which is one of its most profitable markets.