China same-store sales fell by 6 percent year-on-year in the fourth quarter, compared with a previous estimate ( 估计) for a decline of 4 percent, the filing said.
Shanghai's food safety authority said that tests conducted by a third-party agency from 2010 to 2011 found that chicken supplied to the company by Liuhe Group Co. ltd. contained too much antibiotics. Yum said it stopped all supplies from Liuhe in August 2017.
The revelation caused heated debate among Chinese consumers. The negative impact will stay 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 substance on their menus--KFC won't be able to rebuild its supply chain in the short term, Gao said.
He added that food safety issues in the Chinese supply chain, from chicken to todder(草料) , 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.
Zhao Ping, a researcher at the Academy of International Trade and Economic Cooperation, said that due to their rising income levels, an increasing number of Chinese people are paying more attention to healthy eating, bringing new attitudes toward foreign fast food brands and reducing their trust and appreciation of those chains.
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