The Americas
Investigation continues into deadly McDonald’s E coli outbreak
McDonald’s has announced the return of its Quarter Pounder burgers to 900 US restaurants this week, following their withdrawal due to an E coli outbreak, which has killed at least one person and infected at least 75. The fast-food chain will serve the popular menu item without slivered onions, as health authorities continue to investigate the source of the contamination. Attention has shifted towards US-based foodservice supplier Taylor Farms as the potential cause of the outbreak and the company has voluntarily recalled certain yellow onions supplied to fast-food chains. Yum Brands also removed onions from select Taco Bell, KFC and Pizza Hut locations following the outbreak.
Starbucks CEO calls for strategy overhaul to return to growth
US coffee giant Starbucks has suspended its forecast for the full fiscal year 2025 as its new CEO Brian Niccol calls for fundamental change in the company’s strategy to return to growth. The company has reported preliminary financial results for its 13-week fiscal fourth quarter (Q4) and the 52-week fiscal year ended 29 September 2024. Consolidated net revenue for Q4 of the fiscal year was $9.1bn – a decline of 3% – with global comparable store sales falling by 7% in Q4 and dropping 2% for the full fiscal year 2024. Niccol said: “Our fourth quarter performance makes it clear that we need to fundamentally change our strategy so we can get back to growth and that’s exactly what we are doing with our Back to Starbucks plan.”
Asia Pacific
Japanese pub chain snaps up Subway to diversify portfolio
Tokyo-based pub operator Watami will acquire Subway Japan in a strategic move to diversify its portfolio, following struggles related to the Covid-19 pandemic. Despite a 34.9% increase in sales at bars and izakayas in 2023 compared to 2022, the industry is still operating at just 66.5% of its pre-pandemic levels, according to the Japan Foodservice Association. The izakaya chain ‒ an izakaya is a traditional Japanese bar where alcoholic drinks are served with snacks ‒ has secured a ten-year franchise contract with Subway International to operate Subway stores in the country, aiming to significantly increase the number of outlets.
Crop diseases cause kimchi crisis in South Korea
South Korea is grappling with a kimchi crisis as the prices of Chinese cabbage ‒ the main ingredient in the country’s most popular dish ‒ surge due to crop diseases brought on by extreme weather, according to a report in Nikkei Asia. Prolonged heatwaves throughout the summer fostered pathogens that cause root rot and discoloration in cabbage, leading the average wholesales price to soar to 8,010 won ($5.80) per head—2.6 times last year’s price— and prompting government efforts to stabilize supply, including increased imports from China. As temperatures continue to rise, producers are working to develop new preservation techniques to maintain year-round availability of this national dish.
Europe Middle East and Africa (EMEA)
More than half of UK hospitality firms to cut jobs and investment if rates relief ends
According to a snap survey conducted by the British Beer and Pub Association, British Institute of Innkeeping and UKHospitality, 54% of pubs and hospitality businesses would cut jobs and 51% would cancel investment if bills quadruple when business rates relief ends in April. The report highlighted that 76% would experience lower profit and 28% would have to close at least one site if business rate support comes to an end. “This is a stark reminder of what faces our pubs, brewers and hospitality venues if business rates support isn’t addressed at the Budget,” the trade bodies said in a joint statement. The UK government is set to unveil the Budget for the next year on 30 October.
It’s gouda go: grate British cheese robbery stuns industry
Scammers have stolen 22 metric tons of artisanal cheese from one of Britain’s most famous dairy companies in what Jamie Oliver has dubbed ‘the grate cheese robbery’. Posing as a wholesale supplier to a French retailer, the thieves duped Neal’s Yard Dairy into sending the shipment worth £300,000 across the channel, only for it to disappear without a trace. The company is working with the police to solve the case, but in the meantime Oliver has warned cheese enthusiasts to be wary of suspiciously large quantities of premium Cheddar on the black market. “Remember, if the deal seems too gouda to be true,” he posted on Instagram, “it probably is!”
Elly Earls
