A Russian crackdown on McDonald’s Corporation (NYSE:MCD) fast food locations in the region has resulted in four of the restaurants being suspended due to “numerous” sanitary violations, according to a press report.
McDonald’s sections sealed off from foot traffic
Citing a source in the Rospotrebnadzor, the Russian consumer protection watchdog, the report said sections of the restaurants in question have been sealed off from foot traffic.
McDonald’s Corporation (NYSE:MCD) is managed by a franchise system where processes for all operations, from food storage and preparation and store cleanliness, is known to run off a consistent system with accountability checkpoints. The fast food chain said in a statement it is reviewing the charges and attempting to determine what will be necessary to reopen the shuttered restaurants.
As previously reported in ValueWalk, China has also recently ratcheted up charges against McDonald’s, an international symbol associated with the US economic engine. It is unknown if the actions are related.
It was nearly a month ago McDonald’s came under harsh scrutiny nearly one month ago, as Chinese press reports documented unsanitary conditions in the handling of various food products.
Chinese McDonald’s outlets halts shipments from its meat supplier
At the time, Chinese McDonald’s outlets have halted shipments from Shanghai Husi, its largest meat supplier. McDonald’s Corporation (NYSE:MCD) Japan used the company to supply one fifth of its chicken nuggets and completely halted nugget sales. McDonald’s Hong Kong stopped selling its McSpicy chicken fillets, chicken and green salads, expanding the list of halted products to anything supplied by a related company, Guagzhou Husi, including lettuce, corn, onions and tomato.
Yum! Brands, Inc. has followed suit, as its KFC and Pizza Hut restaurants have been ordered to seal up and stop using all meat supplied by the Husi factory.
The pressure in China isn’t just on fast food. A recent spat of antitrust probes has come under intense criticism for enforcement of the country’s anti-monopoly laws, saying government officials are using “intimidation tactics,” according to a Financial Times report on the topic.
Although there is no formal link between the events and other economic news, Russia, China and other emerging nations have been organizing an alternative economic system to compete with the Western-dominated financial structure, efforts of which have recently gained steam. It is unknown if the seemingly increased crackdown on Western business interests that has occurred as part of this campaign.