Skip to content

Yum! Brands Inc. Cracks Down on Corruption in its China Operations

With speedy expansion into the China market, Yum! Brands Inc. is facing a rise in the number of business frauds and has launched a crackdown on internal corruption. The latest dismissal took place in a Pizza Hut store in Shanghai in mid-June where an employee was dismissed as a result of forging a fake financial statement.

According to statistics disclosed by Yum! Brands Inc., by the end of 2007, there were 2,100 KFC stores, including 300 opened in 2007, while the total number of Pizza Hut stores reached 300 including, 100 new stores opened in 2007. The revenue of Yum! Brands Inc. in China reached 21.5 billion yuan and its profits grew by 30 percent, accounting for 1/3 of its profits worldwide.

Source: China Business, June 23, 2008
http://www.cb.com.cn/news/ShowNews.aspx?newsId=17718