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Fast food faces indigestion in China amid rapid expansion

One month after the expired-meat scandal that dented the sales and reputation of western fast food in China, office worker Arthur Han contentedly chews his burger and proclaims that now is the best time to eat at McDonald’s in China – while the heat is still on from the food safety authorities.

Mr Han says he does not normally eat at the US burger chain, whose brand image for cleanliness and quality was shaken last month by an undercover television investigation that accused it and several other western fast-food companies including Yum Brands and Burger King of using a mainland supplier thatrelabelled expired meat.

In a country where food safety is one of the biggest political issues, the $200bn fast-food industry has been propelled again into the spotlight. The latest issue comes as the rapidly growing sector is grappling with a host of other issues. These include escalating competition from local players; rising rents; labour shortages – and the fundamental difficulty of procuring safe supplies in a market that is both fragmented and growing rapidly.

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