McDonald’s Apologizes Over Reports of China Food Safety Violations

McDonald's Corporation announced on Monday that it is cooperating with Chinese market regulators to investigate food safety violations reported at its outlets [para. 1]. This announcement followed an apology from the fast-food giant after a local media investigation revealed that employees at McDonald’s restaurants in Zhengzhou, Henan province, and Jinan, Shandong province, had used expired ingredients and tampered with food expiration labels [para. 2]. Additionally, the Zhengzhou outlet failed to replace its cooking oil according to the specified operating standards, as reported by The Beijing News on Monday [para. 3].

In response to these revelations, McDonald's issued a statement on its website declaring zero tolerance for any actions that violate operating standards. They apologized for the impact caused by the implicated restaurants and committed to reinforcing the implementation and enforcement of their code of practice at all outlets [para. 4]. On Monday morning, officials from the market regulator visited the affected outlets and collected food samples for further investigation. Representatives from the market regulation administrations in Zhengzhou and Jinan confirmed that the investigation results would be made public [para. 5].

Since entering the Chinese mainland in 1990, McDonald's has expanded significantly, making China its second-largest market with over 5,500 locations. The company aims to increase this number to more than 10,000 restaurants by 2028 [para. 6]. In comparison, Yum China Holdings Inc., which operates KFC and Pizza Hut, currently has over 14,000 outlets and plans to expand to 20,000 by 2026 [para. 7].

In November, McDonald's disclosed that it had agreed to buy Carlyle Group Inc.’s minority stake in the partnership that manages its business in China, Hong Kong, and Macao for an undisclosed amount. This transaction will increase McDonald's stake in the partnership from 20% to 48% [para. 8]. Bloomberg contributed to this story [para. 9].

For further information, contact reporter Kelsey Cheng (kelseycheng@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com) [para. 10].