July 31 Burger King Worldwide Inc said
on Thursday it would no longer buy products from OSI Group LLC
suppliers in China, where the fast-food hamburger chain has
about 200 restaurants.
OSI is the U.S. parent of Shanghai Husi Food, the factory at
the heart of China's latest food safety scandal. That scare was
triggered by a TV report alleging workers at Shanghai Husi Food
used expired meat and doctored food production dates.
Regulators closed the plant on July 20. Police have detained
five people, including Shanghai Husi's head and quality manager.
Burger King last week suspended the sale of any products
from the Husi factories in Shanghai that supplied its
restaurants and launched an investigation, Alix Salyers, a
spokeswoman for the Miami-based chain, said in an email.
"As a precaution, we have decided that we will no longer
source any products from Husi or any of its related entities
throughout China," Salyers said.
Burger King's China outlets might experience some temporary
menu item shortages as a result, she added.
Yum Brands Inc the biggest Western restaurant
operator in China with 6,400 restaurants, warned on Wednesday
that the scare caused "significant, negative" damage to sales at
KFC and Pizza Hut restaurants in the period from July 20 through
After the scandal broke, Yum quickly cut all ties with OSI,
which was not a significant supplier to the chain.
McDonald's Corp, which has deep ties to OSI and was
more dependent on the supplier, ended its relationship with OSI
China. As a result, many of its 2,000 restaurants there have
suffered meat shortages.
McDonald's Holdings Co Ltd, the Japanese unit of
the world's biggest restaurant chain, also withdrew its earnings
guidance for the year after the scandal forced it to switch to
alternative chicken supplies.
OSI did not immediately respond to requests for comment.
(Reporting by Lisa Baertlein in Los Angeles. Editing by Andre