McDonald’s to increase audits of suppliers in China

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McDonald’s Corp. plans to increase audits, including video monitoring, of its suppliers in China after a food scandal in July hurt its sales there.

The Oak Brook hamburger chain intends to make half of its supplier audits unannounced, Reuters reported. The company said it will send more quality control specialists to supplier plants too.

McDonald’s, KFC and Pizza Hut were among the fast-food chains affected after Shanghai Husi Food Co., a subsidiary of Aurora-based OSI Group, was accused of processing expired meat and distributing it to customers.

McDonald’s suspended its supply arrangement with Shanghai Husi and is considering whether to break ties with the company. It is working with other suppliers in China to increase production to meet its restaurants’ needs.

OSI Group on Monday announce it had hired a subsidiary of Golden State Foods to manage a vegetable and fruit plant in China.


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McDonald’s says China meat scandal hurting sales

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