SHANGHAI, July 21 U.S. fast food chains
McDonald's Corp and Yum! Brands Inc said they
will stop using products supplied by a local meat processor
after a Shanghai regulator halted the firm's operations on
Sunday over food safety concerns.
The move is a potential concern for the two brands, which
are both now conducting their own investigation into the matter,
since the pair were hit hard by a food safety scandal in China
late in 2012. Yum, which apologised to Chinese consumers for any
inconvenience caused in the latest case, suffered a sharp dive
in profits early in 2013 after the safety concerns.
The Shanghai Food and Drug Administration (SFDA) halted the
operations of Shanghai Husi Food Co., Ltd, a meat supplier
suspected of providing meat that had passed its expiration date
to China branches of McDonald's restaurants and Yum's KFC and
Pizza Hut outlets, the Xinhua news agency reported on Sunday.
The SFDA inspected Shanghai Husi on Sunday evening after a
local television channel broadcast a programme claiming an
undercover reporter had seen the use of expired meat and poor
hygiene practices in a local factory, local media said.
Yum and McDonald's both said they have stopped using meat
products purchased from Shanghai Husi, according to statements
posted on their official Weibo microblog sites.
(Reporting by Engen Tham and Adam Jourdan; Editing by Kenneth