An all-American meat scandal has hit Shanghai, as McDonald´s and Yum´s KFC banned their Chicago-owned supplier after authorities found out it used out-dated meat. Retail analyst Ben Cavender expects a long-term damage to both restaurant chains, he tells in the China Daily.
The China Daily:
Ben Cavender, an analyst at Shanghai-based China Market Research, said the new allegation is going to have a lasting impact on both brands despite their responses to make consumers feel better.
But Yum will take more of a hit due to food safety problems in the past, which indicates the company is less likely to control its suppliers well, he said.
Even if they were only indirectly responsible, in the eyes of consumers their brands are going to be hurt, said Cavender.
The allegations have once again reminded consumers of recent food scandals including baby formula laced with melamine and fox DNA found in donkey meat.
“In China, food safety concerns are so strong, even more than other markets,” he said.
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