Latest News:  

English>>China Society

Yum! Brands sales in China hit by govt probe

(China Daily)

09:58, January 09, 2013

Customers enjoy their meal at a KFC store in Yichang, Hubei province. Yum! Brands Inc, owner of the fast food chain, said fourth-quarter same-store sales fell more than projected in China after a government probe into one of its former suppliers hurt demand. (Photo / China Daily)

KFC owner says business affected worse than expected by chicken scare

Yum! Brands Inc, owner of the KFC fast-food chain, said fourth-quarter same-store sales fell more than projected in China as demand was hit by a government investigation into one of its former chicken suppliers.

Industry experts had predicted the negative impact of the probe, which is expected to be felt in the long term.

KFC sales in China in the last two weeks of December were affected by the adverse publicity associated with the probe into Chinese poultry suppliers, the US company said in a filing with the United States Securities and Exchange Commission on Monday.

China same-store sales fell by 6 percent year-on-year in the fourth quarter, compared with a previous estimate for a decline of 4 percent, the filing said.

Shanghai's food regulators said that tests conducted by a third-party agency from 2010 to 2011 found that eight batches of chicken supplied to the company by Liuhe Group Co had excessive levels of antibiotics. Yum said it stopped all supplies from Liuhe in August 2012.

The revelation sparked heated debate among Chinese consumers. The negative impact will linger for a long time for KFC, which relies heavily on domestic chicken suppliers, said Gao Jianfeng, general manager of the Shanghai-based Bogo Consultants.

With a huge number of restaurants demanding large quantities of chicken - the main ingredient on their menus - KFC won't be able rebuild its supply chain in the short term, Gao said.

He added that food safety issues in the Chinese supply chain, from chicken to fodder, are widespread.

"No single company can preserve its reputation in such an industrial chain," he said.

An increasing number of fast-food consumers have started to go to other Western chains such as McDonald's or Burger King, he said.

We Recommend:

Your moment supports my whole life

Love makes us stay together forever

Chinese under the pressure

China sends patrol vessel to S. China Sea

Why ‘Chinese style road crossing’ occurs

Beijing witnesses 7th snowfall this winter

Survey: Chinese men more 'hasty' in love

China's weekly story (2012.12.21-12.27)

Revised traffic regulation takes effect in China


Leave your comment0 comments

  1. Name


Selections for you

  1. PLA Special Forces in field training

  2. Mechanized infantry division in drills

  3. Selected Xinhua int'l news pictures of the year 2012 (II)

  4. Birds in aviary of Hong Kong Park

  5. 2012 year in review: Say goodbye

  6. China is Asia's top investment destination

  7. People prepare for Spring Festival

  8. Something about nature

Most Popular


  1. Cold War mentality fuels US prejudice
  2. Fewer satisfied with their lives in 2012
  3. Enlightenment from a 'millionaire' cleaner
  4. Is there hope for Chinese football?
  5. Men to wives: Earn more, but still less than I do
  6. Foreign aid,NOT enough for Chinese soccer
  7. Reliance on land sales 'must be reformed'
  8. Heroism, a matter unrelated to wealth
  9. 'Chinese Fortune Grandpa' VS 'Santa Claus'
  10. China Voice: Blind eyes are deadlier than blazes

What’s happening in China

1.8 million students have taken NEEP. What motivate them to continue study rather than work?

  1. Leak scandal company ordered to halt
  2. Gales, high waves strand 27 at Xisha Islands
  3. China's charities hit by lack of trust
  4. Death sentence for sex pest
  5. One dead, one injured in SW China's metro