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KFC to tighten supplier reviews due to drop in sales

Yum Brands Inc, which is the owner of the popular fast food chain KFC (Kentucky Fried Chicken), has now decided to ramp up its safety and tighten requirements for suppliers in China. The measures were taken so as to win back customers,  after a probe into chicken providers which dragged down the local sales.

The company said that it will work with the suppliers and phase out the smaller chicken suppliers which were not modernized enough. A statement from the company said that the supplier review process will put a more stringent emphasis on the safety of food. KFC, is at present trying to revive results in China, after a former supplier was found to be providing chicken with too many antibiotics in the meat.

The sales at the locations fell by at least 6 percent in the fourth quarter of 2012, which is its first quarterly drop in three years. Patrick Grismer,  the chief financial officer said that Comparable store sales in China might decline to 25 percent in the first quarter of 2013.

KFC added that it was planning to eliminate more than one thousand chicken coops,  which were smaller and not as well equipped. The restaurant chain has also promised to improve its communication with the government and the general public.


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