Day 125 - 12 May 95 - Page 15


     
     1        local health departments not allow re-run to be used?
     2        A.  Some health department have a higher standard than
     3        others and to further ensure the potentiality of
     4        contamination they restrict the use of re-run.  So, in
     5        America, for instance, you could have a health department,
     6        let us say, in the state of New York that might require
     7        that re-run be tossed at the end of the day; whereas in
     8        another state, for instance the state of West Virginia, it
     9        might be permissible.
    10
    11        So, it is the responsibility, obviously, of the franchisees
    12        and the Company to be conversant, be knowledgeable, of all
    13        of the various laws and regulations in the various
    14        municipalities and states in which we operate.  So, it does
    15        not necessarily mean that one state is bad, or one practice
    16        is bad and the other one was good; it is just a matter of
    17        tightening up procedures.  The likelihood of contamination
    18        from re-run that is used early in the morning, the
    19        likelihood of contaminants, is very remote.  But,
    20        certainly, the extra few tenths of a per cent that you
    21        would gain by eliminating its use is what some health
    22        authorities, some officials, feel they want to have.  They
    23        want to have that extra degree of safety.
    24
    25   Q.   But McDonald's itself does not feel it is important to
    26        adhere to the highest health standards in this?
    27        A.  McDonald's wants to comply with all regulations,
    28        existing regulations.  As I have indicated earlier, we
    29        really want to exceed in most cases what is required of
    30        us.  We normally score very, very high on health
    31        inspections.  I can tell you, from personal experience in
    32        my travels around the country, that we generally score very
    33        highly in the inspections that are made, and usually they
    34        are unscheduled inspections that are conducted by health
    35        departments.  McDonald's is considered the standard of the
    36        industry.
    37
    38        We are often complimented, we are often praised, for our
    39        practices and procedures.  It is often said that, you know,
    40        they wished that other restaurants would observe just half
    41        of the procedures that we employ.  So, I would say that a
    42        more fair characterisation of the way we operate is that we
    43        generally set the standard.  Our operating standards are
    44        generally higher than the industry.
    45
    46   Q.   But in this case you are not reaching the highest standards
    47        set by some health authorities, and basically the only
    48        reason for this is to save money, is it not?
    49        A.  Well, I think that is a narrow view to look at it.
    50        I think it is important to be compliant with all existing 
    51        laws and regulations in the area, town, city, state that 
    52        you operate, that you are in compliant with all federal 
    53        laws.  Once you are compliant with those laws, I think it
    54        is perfectly permissible, within your operating right, in
    55        this particular case, to use over-run if it is acceptable.
    56        If you maintain that re-run in a proper manner, it is
    57        refrigerated and put away and then used the very next day,
    58        as we outline clearly, specifically in our manual, this is
    59        no reason for concern.
    60

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