‘Unsafe’: Popeyes accused of using supplier that stored chicken in residential garages

A lawsuit alleges Popeyes Louisiana Kitchen of purchasing meat unsafe for human consumption, that was stored and packaged in residential garages.

A lawsuit filed against Popeyes Louisiana Kitchen is accusing the fried chicken chain of buying “unsafe” meat from an unauthorized seller that was allegedly storing and packaging raw chicken in residential garages in Ontario.

The lawsuit was filed at the Ontario Superior Court of Justice on May 26 by ADP, a former raw chicken supplier to Popeyes. The company alleges they lost their contract with Popeyes after bringing forward its concerns about the “unsafe supply” of products.

Popeyes, Restaurant Brands International (RBI)—the Toronto-based company that owns the fast-food chain—and Restaurant Services Canada Inc. (RSCI), the supply chain manager, are all named in the lawsuit.

Popeyes, for its part, said in a statement to CTV News that the claims from ADP Direct Poultry Ltd. are unfounded and that it found “no evidence” to support them following an investigation.

The lawsuit also names another company as the unauthorized supplier that allegedly provided, at times, “rotten or expired” chicken deemed “unfit for human consumption” to various franchisees across Ontario. The documents continue to say this chicken created a public health risk because it was delivered in vehicles that did not have the proper refrigeration to prevent it from spoiling.

The statement of claim alleges that these tainted products were bought by various franchisees—both known to ADP and not, all named in the suit—due to their lower prices.

The lawsuit also alleges the franchisees continued to sell the chicken to customers, even after ADP brought forward its concerns that the products did not adhere to food health and safety standards. The allegations have not been tested in court.

As laid out in the documents, Popeyes had a system of authorized suppliers and distributors who adhered to the company’s specifications and standards, meaning franchisees were required to purchase from within their approved list of vendors. Any restaurant looking to purchase ingredients outside of the company’s list of vendors had to write a formal request, after which the supplier in question would have to submit to an inspection to ensure it meets the requirements as well as health and safety standards.

ADP claims the chicken sold by the unauthorized company was not inspected by the Canadian Food Inspection Agency (CFIA) or any other inspector. In a statement to CTV News Toronto, the CFIA said it does not conduct inspections of restaurants or food service establishments--as that is typically conducted by municipalities or regional health authorities. But the agency says it launches an investigation if it receives any information to suggest a federally regulated food product could pose a health risk.

The supplier claims RSCI, meanwhile, did not investigate the unsafe supply of chicken as they promised and instead conspired to “manufacture a rationale for removing ADP” from their authorized vendors list. In turn, the filings further allege franchisees were “upset about the reporting of the unsafe supply” and worked with the RSCI to lodge “false or misleading” complaints about the quality of their products.

CTV News has reached out to Restaurant Services Inc., parent company to RSCI, for comment but has not yet heard back.

“We believe this former supplier is lashing out after losing our business for a variety of legitimate reasons,” Emily Ciantra, Popeye’s director communications, told CTV News Toronto in a statement.

“We have always been committed to rigorous safety standards, including regular inspections by third party auditors who verify our strict standards are being followed.”

ADP seeks $35 million in damages from Popeyes, RBI and RSCI, citing breach of contract and breaches of the Competition Act. The documents state that $30 million is to cover ADP’s loss of profits after their contract—which was expected to continue until 2027—was prematurely terminated. An additional $5 million is to cover the costs the supplier incurred after boosting its production facilities to meet Popeyes’ increased production demand, the documents state. ADP also seeks $1 million in punitive damages.

The supplier adds it also lost out on business opportunities, such as providing products to other fast-food chains like Wendy’s.

Additionally, the raw chicken supplier is seeking at least $10 million in damages from the unauthorized company, who it deems liable for “unlawfully interfering” with ADP’s economic relationship with Popeyes, as well as $500,000 in aggravated damages.

ADP also seeks $150,000 from each franchisee and an account detailing the quantity of “unsafe supply” they bought from the company as well as how much they profited from the unauthorized products.

“The defendants’ conduct was malicious, high handed, intended to cause harm to ADP, endangered the public, and warrants aggravated and punitive damages,” the filings state.