INTERNATIONAL REPORT
Restaurant brands of all sizes turned Thursday into a charge abroad, with no fewer than four chains disclosing deals to open franchises in areas ranging from Brazil (KFC) to Poland (Starbucks). The Middle East proved a particularly popular target, with development pacts disclosed by Bubba Gump Shrimp Co. and Burger King. The flurry of disclosures follow the announcement earlier this week that Papa John's intends to open 120 pizzerias a year in China for the next several years.
Meantime, the U.S. chains with the largest presences in China have reportedly run into trouble there with government officials. Local media reported that labor regulators in the province of Guangdongare investigating accusations that McDonald’s, KFC and Pizza Hut are paying employees less than the mandated minimum wage, computed at roughly $1 an hour. Spokespeople for the burger chain and KFC and Pizza Hut parent Yum! Brands were quoted as saying they were in compliance with the law but could need some clarification on overtime rules and the standards for students.
The accusations against the chains were levied by The New Express Daily, which, according to reports in the U.S. press, asserted that McDonald's paid its staffers 52 cents an hour; KFC paid 61 cents; and Pizza Hut paid 65 cents.
