According to Reuters and others, a major foreign-owned restaurant chain operating in China possibly used tainted meat products. An organized crime group exposed on May 2 is said to have sent falsely labeled meat products containing rat, fox and other contaminants to the Mongolian hot pot specialty restaurant chain Little Sheep which is owned by U.S.-based Yum! Brands of the U.S., operators of Kentucky Fried Chicken (KFC) and other well-known restaurant chains. This latest revelation comes to light not long after it was revealed this past January that KFC China was using chicken that had received excessive doses of growth promoting agents and antibiotics. China has become a major market for the restaurant titan, and the company is said to be at wits end as it deals with successive scandals occurring there.
Reuters, along with China’s state-run Xinhua and others reported that on the May 3, inspectors from Shanghai’s Municipal Food Safety Commission and the National Public Safety Commission searched a wholesale market in Shanghai in connection with an incident involving false labeling of sheep meat. They seized multiple packages of meat affixed with labels proclaiming “Lamb from New Zealand.” The labels, however, did not contain standard information such as dates and composition, tipping inspectors off to the fraud.
Upon further examination, inspectors discovered invoices indicating fraudulent meat product had also been sold to restaurants, including the Little Sheep chain.
Two days prior to the search, Chinese security authorities announced they had uncovered a criminal gang selling meat from small mammals, such as rats, that had been falsely labeled as lamb. The investigation, which had been ongoing for three months, resulted in the arrest of 904 individuals on suspicion of selling contaminated and mislabeled meat and the confiscation of 20,000 tons of fraudulently labeled meat products. According to Xinhua, there were instances of illegal chemicals also being mixed into the meat. The group is believed to have sold more than 160 million yen (approx. US$1.6 million) worth of tainted product since 2009.
Brands’ Images Take a Hit
Little Sheep was founded in Baoutou, Inner Mongolia, China in 1999. The restaurant’s main dish is lamb served with two types of specialty broth for cooking. Its Mongolian-style hot pot offerings proved popular, and the chain was listed on the Hong Kong stock exchange in 2008. In 2011, it was bought out for approximately 580 million U.S. dollars by Yum! Brands, which was making a major move into the Chinese market. Currently there are about 300 Little Sheep restaurants operating in China.
Yum! also operates the Kentucky Fried Chicken, Pizza Hut and Taco Bell franchises, and the Chinese market, anchored by 5,300 KFC outlets, accounts for more than half of the company’s global sales.
In January, however, it came to light that even though antibiotics in excess of standards were detected in chicken meat the company procured during 2010 and 2011, KFC China neglected to disclose the facts and report the information to authorities, continuing to illegally use the meat until 2012. This revelation, along with the outbreak of avian flu in April, has driven down customer numbers.
Local media reported that KFC sales in China for March were down 16 percent year-on-year, and that an even greater drop was expected for April.
Concerning the tainted lamb meat, Yum! is currently refraining from providing any comment. However, further damage to the company’s brands is inevitable, which could prompt it to review its global strategy of anchoring itself to the Chinese market.
Source: Sankei Express

Studio Ghibli now sells Ursula’s backpack from Kiki’s Delivery Service at its anime shop in Japan
Japanese government planning higher ticket prices for foreign tourists at Tokyo National Museum
Silicone testicle covers banned from Japanese sauna following cups being left behind and on shelves
Starbucks Japan unveils new sakura cherry blossom collection for hanami season 2026
Visiting Japan’s one-and-only, and only-for-a-limited-time, Dragon Ball noodle restaurant[Photos]
Studio Ghibli now sells Ursula’s backpack from Kiki’s Delivery Service at its anime shop in Japan
Japanese government planning higher ticket prices for foreign tourists at Tokyo National Museum
Silicone testicle covers banned from Japanese sauna following cups being left behind and on shelves
Starbucks Japan unveils new sakura cherry blossom collection for hanami season 2026
Visiting Japan’s one-and-only, and only-for-a-limited-time, Dragon Ball noodle restaurant[Photos]
A sight for sore Sableyes! Pokémon teams up with eyewear brand JINS for more monsteriffic designs
Unique Starbucks in historic building is one of the most beautiful in Japan
Tokyo Station’s perfect breakfast spot might just be this izakaya Japanese-style pub
Häagen-Dazs new zunda mochi ice cream gives us a lot of delicious things to think about
One Piece creator has hidden secret of anime treasure’s identity in chest at bottom of real-world ocean
Japan’s cherry blossom season predicted to start earlier than we’d thought, especially in Tokyo
Is Tokyo Station’s startlingly expensive wagyu bento boxed lunch worth its high price?[Taste test]
Starbucks Japan releases first-ever Hinamatsuri Girls’ Day Frappuccino
Japanese restaurant chain serves Dragon Ball donuts and Senzu Beans this spring
Live-action One Piece’s Luffy teaches Sesame Street’s Elmo a Japanese word for friendship[Video]
Sakura Festival in Chiyoda mixes illuminations, boats, music, and Rilakkuma in the heart of Tokyo
Japan’s craziest burger chain takes menchi katsu to new extreme levels
Viral Japanese cheesecake from Osaka has a lesser known rival called Aunt Wanda
Japan’s newest Shinkansen has no seats…or passengers [Video]
Starbucks Japan releases new sakura goods and drinkware for cherry blossom season 2026
Foreigners accounting for over 80 percent of off-course skiers needing rescue in Japan’s Hokkaido
Super-salty pizza sends six kids to the hospital in Japan, linguistics blamed
Starbucks Japan unveils new sakura Frappuccino for cherry blossom season 2026
Foreign tourists in Japan will get free Shinkansen tickets to promote regional tourism
The 10 most annoying things foreign tourists do on Japanese trains, according to locals
Take a trip to Japan’s Dododo Land, the most irritating place on Earth
Naruto and Converse team up for new line of shinobi sneakers[Photos]
Survey asks foreign tourists what bothered them in Japan, more than half gave same answer
Japan’s human washing machines will go on sale to general public, demos to be held in Tokyo
Starbucks Japan releases new drinkware and goods for Valentine’s Day
We deeply regret going into this tunnel on our walk in the mountains of Japan
Studio Ghibli releases Kodama forest spirits from Princess Mononoke to light up your home
Major Japanese hotel chain says reservations via overseas booking sites may not be valid
Put sesame oil in your coffee? Japanese maker says it’s the best way to start your day【Taste test】
No more using real katana for tourism activities, Japan’s National Police Agency says
A sight for sore Sableyes! Pokémon teams up with eyewear brand JINS for more monsteriffic designs
Unique Starbucks in historic building is one of the most beautiful in Japan
Tokyo Station’s perfect breakfast spot might just be this izakaya Japanese-style pub
Häagen-Dazs new zunda mochi ice cream gives us a lot of delicious things to think about
One Piece creator has hidden secret of anime treasure’s identity in chest at bottom of real-world ocean
Let’s take a tour of the best sushi in Tokyo’s Tsukiji Fish Market with Mr. Sato! (Part 1)
Sanrio changes Hello Kitty lead designer for first time in 46 years
It’s illegal for yakuza to go to professional baseball games in Japan, Tokyo arrests remind us
This is what a 10,000-yen (US$90) Unagi Sushi Cake looks like
Strap a slab of delicious grilled meat on your back with this new backpack from Japan
A Drop of Zen: New matcha drink stand opens in Kyoto
Hello, cosmetics! Clinique teams up with Hello Kitty this summer for first-time collaboration
Death Spray from Japan causes buzz online for powerful ability to cut ties with bad energy
Japan asked to vote on what to officially call insanely hot days