Dive Summary:
- Yum!'s KFC franchise was rocked a few months ago by a scandal in China when large amounts of antibiotics were found in some of the chicken.
- Recently, the company announced a new set of safety guidelines and plans to end business with some of its chicken suppliers in order to ease concerns.
- Yum! earned 42% of its total profits last year from China, making this scandal and recovery critical to their well being.
From the article:
Now, the chain says it will boost oversight over its supply chain and impose stricter requirements on its poultry producers. The company also slashed more than a thousand smaller producers from its network, saying that those operations were difficult to regulate.
Su Jing Shi, president of Yum’s China division, said in a statement that executives “still see some security risks in the chicken supply chain,” including the use of outdated equipment.