United States based multinational chain of coffeehouses and roastery reserves Starbucks Corp. (SBUX) has closed down two of its outlets in China following reports that expired ingredients to make drinks in the outlets. This act goes against food safety rules.
This development was first reported by the Beijing Newspaper claiming to have arrived at the conclusion after an undercover investigation, according to the newspaper, the incidence took place at two outlets in the eastern Chinese city of Wuxi.
The report by the newspaper didn’t sit well with the company, Starbucks claims that since it entered the Chinese market over two decades ago, it has always maintained a strict zero tolerance policy towards food safety issues.
“We take what was reported by local media very seriously, and have immediately closed the two stores in question to conduct a thorough investigation. Since entering the Chinese mainland market 22 years ago, we have been committed to implementing strict food safety standards and adopt a zero tolerance policy towards food safety issues. We welcome the continued supervision of members of the media and the public,” said Starbucks.
Citing latest earnings reports by Starbucks, China is their third largest market outside the United States. As of October 3, the company had 5, 360 outlets across China.