Yum Brands, owner of fast food franchise KFC, faces difficulty trying to make a profit in China because of the poor sales the company has reported this year.

According to their recent sales report, it went down from the 10% it estimated that they would earn back in October. Also earlier this year, they calculated to gain at least 20% in sales, but looks like it is not happening.

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A scandal that occurred on July regarding the safety of KFC's food has affected sales significantly since then. It happened when some news broke out saying that the company gets their ingredients from a supplier who is allegedly delivering old meat. It is none other than Shanghai Husi food, which people in the country have been aware of selling unhealthy processed meat to the public.

But KFC and even McDonald's, who used to use the same supplier, have stopped ordering meat from them since it was suspended on July.

All the negative words that were passed on to people had really taken a toll on the company's sales. The sales in China's food industry are greatly affected by publicity, especially the ones that happened in July. The people in this country are very conscious of the food they eat, so that news has massively had an impact on their sales forecast.

The company said that its sales are starting to recover, however; the phase is just so slow than they have expected. Brands made a prediction that their sales will end up in negative mid-single digits this year compared to what they had in 2013.

TagsKFC, Food and Restaurant