Thursday, October 09, 2014

McDonald's sales slump over food quality fears...

McDonald's sales have been falling worldwide as a result of food scandals and changing consumer tastes.

News that McDonald's Japan is set for its first loss in 11 years is the latest blow, while it was revealed earlier that global sales had slumped 3.7%.

The company was hit earlier this year by a food safety scandal in Japan, in which it was revealed that one of its chicken suppliers was breaching safety standards. As a result, customers fled. The company, which was previously expecting a net profit of £34.5 million, is now predicting a net loss for the year of £97 million.

"Customers have expressed a lack of confidence in our food quality, and I take responsibility for that," said chief executive Sarah Casanova. "It's our intention to try to turn this business around as fast as we can."

 McDonald's had already been suffering in Japan thanks to competition from local convenience stores. But things got much worse for the restaurant chain after a documentary aired showing what was going on in the company's main China-based supplier. Workers were seen handling food with bare, dirty hands and picking up meat from the floor and returning it to the food processing machine. Full story...

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