McDonald’s Corp, the world’s largest fast-food chain, is to close 350 stores globally, including 220 in China and the United States. The company said the move is in reaction to an 8.3 percent slump in first-quarter comparable sales in the Asia Pacific, the Middle East and Africa, which it blamed on the impact of what it called prolonged, broad-based consumer perception issues in Japan, and negative but improving performance in China…Full Article: China Daily Apr 2015

Key Point

  • It is unknown the exact number of China-based McDonald’s that will be closed. Neighboring Japan is expected to close ~130 stores.

ChinaAg Comments

  • McDonald’s China has more than 2,000 restaurants in mainland China.
  • In November 2014, McDonald’s China’s supply chain came under increased scrutiny after the US Department of Agriculture approved a genetically modified (GM) potato developed by J.R. Simplot, a McDonald’s supplier.
  • In September 2014, the Shanghai Food and Drug Administration notified OSI China that it was fully responsible for the tainted meat produced by Shanghai Husi. In addition, 340 Husi employees and contractors were officially laid off.
  • In August 2014, McDonald’s in Hong Kong stopped selling fresh corn cups, green salad and fresh lemon tea as these items were primarily sourced from OSI processors in Hebei and Gaungzhou.
  • In July 2014, Shanghai Husi, a division of US-based OSI Group LLC, was found to have sold expired meat to McDonald’s, Pizza Hut, Papa John’s, Seven-Eleven and FamilyMart (Japan-based convenience store).

Similar Posts by ChinaAg

Spread the word. Share this post!