Popeyes franchisees are alleged to have sourced spoiled chicken from a seller operating outside official channels.Eric Gay/The Associated Press
A former food supplier for Popeyes Louisiana Kitchen has accused the fast-food chain of buying chicken from an unauthorized seller operating out of residential garages in Ontario, which did not submit to food safety inspections and in some cases sold “rotten” and “unsafe” meat to Canadian Popeyes restaurants.
Popeyes, which is owned by Toronto-based Restaurant Brands International Inc. QSR-T, says it has found “no evidence” to support the allegations.
Popeyes and RBI, which is also the parent company of Tim Hortons and Burger King, were named as defendants in a statement of claim filed with the Ontario Superior Court of Justice on May 26 by ADP Direct Poultry Ltd., a former supplier of raw chicken products to Popeyes. ADP says it lost its contract with Popeyes after bringing its concerns to the company’s attention.
The lawsuit also names Restaurant Services Canada Inc., which manages the company’s supply chain, and several Popeyes franchisees who own 24 restaurants in the Greater Toronto Area and Brampton, Ont. The claim suggests additional locations, unknown to ADP, are also implicated by the allegations. And it names a company called Amjad Farooq Inc., the supplier it alleges provided the unsafe product.
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The claim accuses Farooq of storing its chicken in garages lacking proper refrigeration or freezing procedures, and transporting the chicken in “consumer vehicles” that also lacked refrigeration to prevent the product from spoiling.
None of the allegations has been tested in court.
The claim alleges the chicken was not inspected by the Canadian Food Inspection Agency or municipal food inspectors. In some cases, the chicken “was rotten or expired, and unfit for human consumption,” according to the court document. The claim further alleges the franchisees continued to use the chicken even after ADP reported the practices to Popeyes, RBI and the supply-chain management company.
“We believe this former supplier is lashing out after losing our business for a variety of legitimate reasons,” Popeyes spokesperson Emily Ciantra wrote in a statement provided to The Globe and Mail. “We previously investigated the food safety allegations they are making and found no evidence to support them.”
As is common for franchise businesses, Popeyes requires its franchisees to buy their chicken and other ingredients from authorized suppliers that prepare products according to the company’s specifications.
Franchisees can apply to buy from a supplier outside the system, if those suppliers submit to inspections, according to the statement of claim, which adds that Farooq was not approved as an alternative vendor.
ADP found out about the practices after receiving “unfounded complaints” about its own products, which led the company to investigate. The statement of claim does not explain how ADP discovered that Farooq was allegedly supplying unsafe products to the franchisees.
The document also accuses the supply-chain management company of making “clandestine arrangements” with franchisees related to the use of unauthorized suppliers.
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The plaintiff is asking for $35-million in damages from Popeyes, RBI and Restaurant Services Canada, for a variety of alleged offences including breach of contract, conspiracy negligence and loss of opportunity, as well as $1-million in aggravated and punitive damages. ADP is also seeking $10-million in damages against Farooq for alleged offences including conspiracy and unjust enrichment, and $500,000 in aggravated punitive damages; and $150,000 in damages from each of the Popeyes franchisees.
“We have always been committed to rigorous food safety standards,” Popeyes spokesperson Ms. Ciantra wrote, “including regular inspections by independent third party auditors who verify our strict standards are being followed.”
The plaintiff, ADP, began supplying raw chicken to Popeyes in 2021 and was reapproved as an authorized supplier in December of 2022, according to the statement of claim. While the company did not strike a new supply agreement with Popeyes’ supply-chain management company after that approval, ADP continued supplying the fast-food chain and received assurances that the supply relationship would continue through 2025 and 2026, according to the statement of claim.
But after ADP brought its concerns to the companies, Restaurant Services terminated the supply relationship with ADP on Dec. 10, 2024, according to the court filing. The statement of claim alleges that Restaurant Services, Popeyes and RBI made “false or misleading quality complaints about ADP’s products” to justify cutting it out of the Popeyes system.
ADP says it incurred costs to prepare to meet orders from Popeyes in 2025, and lost out on possible business relationships with other fast-food chains.