Posts tagged ‘yum brands inc’

22/07/2014

China food scandal spreads, drags in Starbucks, Burger King and McNuggets in Japan | Reuters

The latest food scandal in China is spreading fast, dragging in U.S. coffee chain Starbucks, Burger King Worldwide Inc and others, as well as McDonald’s products as far away as Japan.

The logo of a Starbucks coffee shop is seen in New York June 25, 2013. REUTERS/Brendan McDermid

McDonald’s Corp and KFC’s parent Yum Brands Inc apologized to Chinese customers on Monday after it emerged that Shanghai Husi Food Co Ltd, a unit of U.S.-based OSI Group LLC, had supplied expired meat to the two chains.

On Tuesday, Starbucks said some of its cafes previously sold products containing chicken originally sourced from Shanghai Husi, a firm that was shut down on Sunday by local regulators after a TV report showed staff using expired meat and picking up meat from the floor to add to the mix.

A Tokyo-based spokesman at McDonald’s Holdings Co (Japan) Ltd said the company had sourced about a fifth of its Chicken McNuggets from Shanghai Husi and had halted sales of the product on Monday. Alternative supplies of chicken have been found in Thailand and China, he added. The company’s shares briefly fell as much as 1.4 percent to a 15-month low before closing down 0.4 percent.

China’s food watchdog said it ordered regional offices to carry out spot checks on all firms which had used Shanghai Husi products, and would inspect all of parent OSI’s sites around China to see if enough has been done to ensure food safety. It said the case could be handed over to the police.

The regulator’s Shanghai branch said in a statement on Tuesday it had demanded production, quality control and sales records from OSI. It added it already ordered McDonald’s to seal over 4,500 boxes of suspected meat products and Yum’s Pizza Hut to seal over 500 boxes of beef.

Fast-food chain Burger King and Dicos, China’s third-ranked fast food chain owned by Ting Hsin International, said they would remove Shanghai Husi food products from their outlets. Pizza chain Papa John’s International Inc said on its Weibo blog that it had taken down all meat products supplied by Shanghai Husi and cut ties with the supplier.

via China food scandal spreads, drags in Starbucks, Burger King and McNuggets in Japan | Reuters.

27/11/2012

* Starbucks Plays to Local Chinese Tastes

WSJ: “After nearly 14 years of working to persuade China to buy into its foreign coffee culture, Starbucks Corp is aiming to become more Chinese as it plans a rapid expansion in the country.image

Belinda Wong, president of Starbucks China, said in an interview that Starbucks aims to roll out 800 new stores in the next three years to add to its existing fleet of 700. Over that period it will increase the number of employees to more than 30,000 from the current 12,000.

The company aims to capture a larger market by going more local and applying its cultural insights, Ms. Wong said. For instance, whereas kiosk-sized stores work well in the U.S., where office workers grab bacon-gouda sandwiches to go in the morning on the way to work, Starbucks has learned that Chinese consumers value space and couches on which to relax in the afternoons.

The coffee company is adding some stores that are nearly 3,800 square feet and can seat consumers who come with groups of friends and business partners. Starbucks also has discovered that Chinese tastes for coffee go only so far. It plans to introduce new Chinese-inspired flavors, building on existing favorites like red bean frappuccinos.

Localization is a critical factor in the success or failure of foreign companies in China. Yum Brands Inc has thrived in China by adding fried shrimp and soy milk, among many other Chinese items, to its KFC outlets and fresh seafood bacon pizza and Thai-style fried rice to its Pizza Huts.

Businesses that have failed to grasp the local culture, importing alien models, have fallen out of favor. In September, Home Depot Inc closed all seven of its remaining big-box stores in China after years of losses, having discovered that the do-it-yourself home improvement model doesn’t work well in a do-it-for-me Chinese culture. Best Buy Co closed its nine China outlets in February 2011 after discovering consumers needed washing machines, not espresso makers or stereos.”

via Starbucks Plays to Local Chinese Tastes – WSJ.com.

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