Is China's bird flu crisis a big concern for international QSRs?

April 9, 2013

Still reeling from the effects of a poultry supply chain crisis in China earlier this year, Yum! Brands now faces even more tumult from an avian flu outbreak in that country as suspicions grow over the source.

Earlier today it was announced that an eighth person has died from the strain. About 20 others have been infected. According to ABC News, the H7N9 strain is not as deadly to birds as it is to humans, so it is difficult to track. Some markets in Eastern China have halted live bird sales and slaughtered poultry as a prevention effort.

According to the Financial Times, since news of the H7N9 epidemic broke about a week ago, Yum's shares have dropped more than 6 percent. The China market accounts for about half of the company's profits, with KFC as its flagship brand alongside Pizza Hut.

KFC isn't the only brand experiencing the effects of this scare. On Monday, McDonald's began discounting its chicken McNugget prices by about half at Shanghai area restaurants. According to the International Business Times, the move is likely a way for restaurants to clean out current chicken inventory.

Read more about supply chain news.

Topics: Equipment & Supplies , Food Safety , International , Operations Management

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