With the recent fast food safety scams around Asia, the fast food companies predict a drop in their sales. Chain stores like McDonald’s, KFC and the like are seeing a decline in customers after various scares.
In China, Yum! Brands (the parent company of fast food juggernauts like KFC, Taco Bell and Pizza Hut) have reported that in the third quarter, the expected revenue of $3.45 billion was not met. Instead, Yum! posted that their revenue only earned them $3.35 billion. Despite the quick switch made to switch meat suppliers after Chinese regulators shut down the Husi factories (the place where expired chicken meat was mixed into the final goods), it was not enough to encourage consumers to continue eating chicken. However, the CEO of Yum! Brands in certain that this trend will pass and they look forward to expanding their stores.
The horrific methods used in the Husi factory in China has not only affected the sales of local fast food chains. In Japan, McDonald’s has seen a fall in sales because Japanese consumers have lost confidence in the products. On the 7th of October, McDonald’s Holdings predicted a net loss of 17 billion yen ($156.7 million) for 2014.
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