SEAFOODNEWS.COM — October 7, 2014 — It is red ink that lies ahead as McDonad’s Japan is now forecasting a loss of $157 million for 2014 instead of a previous profit forecast.
McDonald’s Japan has launched a Halloween-themed “Squid Ink Burger,” with black-dyed buns and a “squid ink sauce.”
The burger, which costs $3.40, also features two beef patties, cheese and fried onions.
The company said the squid ink sauce was added to a chipotle sauce with a smoked flavor and pungent taste to give it “the flavor of squid ink.” It is the second black burger to hit the market in Japan after Burger King Japan launched the Kuro Burger.
However it is red ink that lies ahead as McDonad’s Japan is now forecasting a loss of $157 million for 2014 instead of a previous profit forecast.
The company acted quickly to switch to Thai sources for its chicken after Shanghai Husi Food Co., an arm of U.S.-based OSI Group Inc., was accused in Chinese media of intentionally selling expired meat to restaurant companies.
Comps plummeted 25 percent in August following the revelations and September sales were off about 17 percent. Costs have now increased for expanded food safety measures and there were significant write offs for unsold food. Even before the scandal broke, McDonald’s Japan sales were weak as a result of increasing competition from Japanese convenience stores.
Elsewhere in McDonald’s international operations sales are taking a serious hit in Russia where a number of high volume units have been closed by Russian authorities on trumped up charges in retribution for sanctions related to Russia’s meddling in Ukraine.
This story originally appeared on Seafood.com, a subscription site. It is reprinted with permission.