The McDonald's 'Beef Fries' Controversy




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

<< Previous

A Controversy Erupts

In May 2001, a class action lawsuit1 was filed against the world's largest fast-food chain McDonald's, in Seattle, US. The lawsuit alleged that the company had, for over a decade, duped vegetarian customers into eating French fries2 that contained beef extracts.The lawsuit followed a spate of media reports detailing how the French fries served at McDonald's were falsely promoted as being '100% vegetarian.'

Although McDonald's initially declined to comment on the issue, the company issued a 'conditional apology,' admitting to using beef flavoring in the fries. The furore over the matter seemed to be settling down, when to McDonald's horror, some of its restaurants in India were vandalized. Activists of Hindu fundamentalist groups - the Shiv Sena, the Vishwa Hindu Parishad (VHP) and the Bajrang Dal, staged a demonstration in front of the McDonald's head office in Delhi protesting the alleged use of beef flavouring....

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies
or
Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies
or
PayPal (7 USD)

ITC in Trouble Contd...

They submitted a memorandum to the Prime Minister, demanding the closure of all McDonald's outlets in the country.Activists also staged protests in front of McDonald's restaurants in south Mumbai and Thane. Mobs ransacked the outlet at Thane, broke the glass panes and smeared the McDonald's mascot Ronald with cow dung.About 30 people were arrested and later let off on bail. Company officials estimated the loss to the outlet at Rs 2 million. Officials at McDonald's India quickly announced that the vegetarian products served in India did not have any non-vegetarian content (Refer Exhibit I for details).

Background Note- Next Page>>