McDonald’s Overhauling Strategy of China Food-Safety

McDonald’s Corp is currently overhauling its strategy of food safety in China following problems with one of its suppliers that hit the image of the fast food giant and eroded sales across the country.

The company, based in Oak Brook, Illinois said it would review its surveillance video from the sites of its meat production in China and would boost audits of its suppliers.

Over half of the audits that were added will be surprise audits that are unannounced and conducted together with third party auditors and the fast food giant’s management teams, said the company statement.

McDonald’s included other steps such as creating anonymous hotlines for the suppliers and employees to report any noncompliant or unethical practices and the dispatch of specialists in quality control to all of the meat production facilities used by McDonald’s in China.

The company said it has created a position that will be the national food safety chief in China who will report to the CEO in Illinois.

The company will appoint Cindy Jiang, who is currently the senior director of global food safety at McDonald’s as the interim chief.

These moves come as the fast food giant looks to improve its Chinese operations where there are now over 2,000 stores, following the problems that started at the end of July with Shanghai Husi Food a meat supplier, owned by OSI Group LLC a U.S. based company.

Authorities in China accused the plant in Shanghai of selling meat that was expired intentionally to different restaurant companies following the airing of a report on national television alleging the same.

The government in China also launched an official investigation into that company, which has not yet been completed. On Friday, six employees from the plant in Shanghai were arrested for the sales of products that were substandard, said Chinese authorities.

Sheldon Lavin, the owner and CEO of OSI apologized in July to consumers in China for what happened with the sale of expired meat and said a focus would be put on overhauling the business in China.

McDonald’s said in its Tuesday statement that it was evaluating Golden State Foods in based in California as a possible new supplier for China.

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