Share

Burger King cuts ties with China supplier

Beijing - Burger King Worldwide said on Thursday it would no longer buy products from OSI Group suppliers in China, where the fast-food hamburger chain has about 200 restaurants.

OSI is the US parent of Shanghai Husi Food, the factory at the heart of China's latest food safety scandal. That scare was triggered by a TV report alleging workers at Shanghai Husi Food used expired meat and doctored food production dates.

Regulators closed the plant on July 20. Police have detained five people, including Shanghai Husi's head and quality manager.

Burger King last week suspended the sale of any products from the Husi factories in Shanghai that supplied its restaurants and launched an investigation, Alix Salyers, a spokesperson for the Miami-based chain, said in an email.

"As a precaution, we have decided that we will no longer source any products from Husi or any of its related entities throughout China," Salyers said.

Burger King's China outlets might experience some temporary menu item shortages as a result, she added.

Yum Brands the biggest Western restaurant operator in China with 6 400 restaurants, warned on Wednesday that the scare caused "significant, negative" damage to sales at KFC and Pizza Hut restaurants in the period from July 20 through July 30.

After the scandal broke, Yum quickly cut all ties with OSI, which was not a significant supplier to the chain.

McDonald's, which has deep ties to OSI and was more dependent on the supplier, ended its relationship with OSI China. As a result, many of its 2 000 restaurants there have suffered meat shortages.

McDonald's Holdings, the Japanese unit of the world's biggest restaurant chain, also withdrew its earnings guidance for the year after the scandal forced it to switch to alternative chicken supplies.

OSI did not immediately respond to requests for comment.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Should the Proteas pick Faf du Plessis for the T20 World Cup in West Indies and the United States in June?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes! Faf still has a lot to give ...
67% - 913 votes
No! It's time to move on ...
33% - 441 votes
Vote
Rand - Dollar
18.82
+1.1%
Rand - Pound
23.45
+1.5%
Rand - Euro
20.11
+1.4%
Rand - Aus dollar
12.29
+0.9%
Rand - Yen
0.12
+2.0%
Platinum
922.40
-0.3%
Palladium
960.00
-3.1%
Gold
2,334.20
+0.1%
Silver
27.29
-0.5%
Brent Crude
89.01
+1.1%
Top 40
69,421
+1.4%
All Share
75,426
+1.5%
Resource 10
62,370
+0.4%
Industrial 25
104,144
+1.6%
Financial 15
16,150
+2.2%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE