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McDonald’s Japan Finally Sees Store Unit Growth after 2014 China Food Scandal

Tokyo McDonald's at night
McDonald's, Saitama, Japan/Red sign: McDonald's hamburgers/midorisyu photo

Remember the OSI Shanghai Husi food scandal in China, when OSI allegedly supplied expired chicken meat to both McDonald’s China and Japan? Japanese consumers bolted when they learned that McDonald's Japan used Chinese chicken and that their fears of the sanitary conditions for chicken meat processing in China were confirmed in a news clip. McDonald’s Japan says it is finally turning things around, anticipating a net gain of three stores for the last six months of 2017.

The company said it will open 10 new stores in Japan in the final half of the year, while closing seven. The last time it had a net addition for a six-month period was in 2012, according to company data. The count for all of 2017 will show a net reduction of 10 restaurants, McDonald’s Japan said, leaving it with about 2,900 stores. Still, that's a sharp slowdown in closings from recent years. The company shut more than 100 stores in 2015 as it dealt with food-contamination problems. — Bloomberg

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