A supply-chain assessment program called "Operation Thunder"
May 9, 2013The fast-food franchise owner has reeled from one PR disaster to another in China. How the company can bounce back.
Yum has launched a supply-chain assessment program called "Operation Thunder"
The fast-food franchise owner has reeled from one PR disaster to another in China. How the company can bounce back.At the end of 2012, Chinese food investigators discovered that suppliers linked to Yum had fed their chicken more antibiotics than permitted. This past Monday, Yum (YUM) faced another PR disaster when reports suggested Chinese regulators started investigating a mutton supplier possibly tied to the company's hot pot franchise Little Sheep.
The fallout from the antibiotics issue was immense, and Yum has launched a supply-chain assessment program called "Operation Thunder" to address it, CEO David Novak said during the company's 2013 first-quarter earnings call. The company can't afford a string of food quality problems in China. There will likely be additional supplier audits, or Yum could bring more production to its own facilities.
executive vice president at communications firm Levick suggests hiring someone local and making him or her responsible for food safety issues. This tactic, he says, could not only help the company prevent future problems, but it would give the public somewhere to turn should things go wrong.
executive vice president at communications firm Levick suggests hiring someone local and making him or her responsible for food safety issues. This tactic, he says, could not only help the company prevent future problems, but it would give the public somewhere to turn should things go wrong.
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