Food Safety Fears Cause Consumers to Boycott Yum, McDonald's Restaurants in China
A food safety scare that began less than two weeks ago with a TV report of unsanitary conditions at a Shanghai poultry processing plant has snowballed into a headline-grabbing multinational incident. Now, both McDonald's and Yum Brands are reporting significant losses as food safety concerns have led many Chinese consumers to boycott the U.S.-owned restaurants. Both fast food chains, as well as Burger King, have dumped OSI Brands subsidiary Shanghai Husi Food Co. as a supplier and have scrambled to find new poultry and meat suppliers.
Today, ChinaDaily.com reported that Yum Brands Inc. "is offering rewards to Chinese whistleblowers who reveal food safety risks and help strengthen monitoring measures with suppliers." The article added: "Yum apologized in a public letter on Friday to Chinese consumers for concerns caused at its KFC and Pizza Hut restaurants following the improper handling of meat at its supplier Shanghai Husi Food Co. Ltd." Yum Brands has not only terminated its relationship with OSI Brands, but also announced that from now on its Chinese managers will require suppliers to set up monitors in production and manufacturing and its quality management staff will review suppliers regularly.