Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2013
Employee Shareholders Allege Forced Exit After Yum Acquisition; Brand Declines
In February 2012, Yum! Brands completed its privatization acquisition of Little Sheep, and Little Sheep was delisted from the Hong Kong Stock Exchange. In August 2013, some Little Sheep employee shareholders alleged that Yum forced them to sell their shares, and store net revenue fell sharply. Afterwards, Little Sheep saw its distinctive features weakened by standardization and its stores greatly reduced, becoming a typical controversial case of a foreign acquisition of a Chinese restaurant brand. The brand's store count shrank significantly.
2011
Store Hygiene Problems Exposed by Undercover Report
In 2011, an undercover media report alleged that a Little Sheep store in Guangzhou had irregular practices, including greasy tableware, soup pots that had not been disinfected, and beef bones placed directly into soup without washing. At the time, Yum! Brands was advancing its acquisition of Little Sheep, raising questions about its store management.