the discovery of a questionable ingredient used in the chicken feeds by one of Yum! China’s suppliers brought sales growth down to “only” 11 percent.Although Yum! China recovered quickly from these setback,last December Yum! China was again attacked by China’s national news service for sourcing from suppliers that use excessive antibiotics in their chicken feeds. Worse yet, just as Yum! China was rebuilding its
bond of trust with Chinese customers, another potential outbreak of avian flu scared more eaters away. Yum! China’s same-store sales dropped by 20 percent for the first quarter of 2013, its first quarterly decline in three
years ( Exhibit MC15.3 ). But with only two Yum! restaurants per million people in China currently (compared to 58 in the U.S.), Yum! China has no intention of modifying its growth strategy or losing its number-one spot in China’s fast-food industry any time soon