Popeyes Chicken Controversy: A Chicken Processor’s Fight
# Popeyes Supplier Lawsuit Alleges Unsafe Practices, Seeks Millions in Damages
## A legal battle
mr. Pinho said he was ’shocked and frustrated’ by RBI’s decision to cut off its supply contract with ADP for Popeyes at the end of 2024.Galit Rodan/The Globe and Mail
A contentious legal dispute has erupted between Restaurant Brands international (RBI),the parent company of Popeyes Louisiana Kitchen,and one of its former suppliers,ADP. ADP has launched a lawsuit alleging unsafe supply practices and seeking substantial damages,while RBI has dismissed the claims as sensationalized and a simple contract dispute.
ADP initiated legal proceedings in April, accusing RBI and its subsidiaries, including popeyes and Restaurant Canada Supply Inc. (RSCI), of engaging in unsafe supply chain practices.The lawsuit claims that RBI’s decision to terminate its supply contract with ADP for Popeyes, effective at the end of 2024, was a direct result of ADP reporting thes alleged issues.
According to the lawsuit, ADP is seeking a total of $36 million in damages from Popeyes, its parent company, and RSCI, stemming from the alleged unsafe supply. Moreover, ADP is claiming an additional $1 million from RBI and Popeyes for alleged defamation. The company is also seeking $10.5 million in total damages from an individual named Mr. Farooq. ADP is being represented by WeirFoulds LLP, with David S. Brown handling corporate strategy and reputation management, and Macdonald Allen leading the litigation.
RBI,through spokesperson Ms. Ciantra, has strongly refuted ADP’s allegations.”This former supplier has piled sensational allegations about our brand on a lawsuit that is a simple dispute about contract law,” Ms. ciantra stated. “We will hold them accountable through the legal process. We have 380 restaurants in Canada. In 2022 and 2024, they highlighted between 3-15 restaurants in the GTA for us to look into – which we did.”
The loss of Popeyes as a client represents a significant blow to ADP,as the fast-food chain accounted for approximately 10 percent of the company’s total revenue. Adding to ADP’s financial strain, Mr. Pinho, a representative for ADP, revealed that the company had invested in new equipment and expanded its production capacity in anticipation of a substantial Burger King contract that was slated to begin this year but never materialized.Mr. Pinho expressed his shock and frustration over RBI’s decision to end the supply contract. He further claimed that RBI failed to provide the specific reasons it cited as the basis for terminating their business relationship. “When the issue was reported to them, they cut ties with us,” Mr. Pinho stated, implying a retaliatory action rather than a resolution of the reported concerns. RBI has not yet filed a statement of defense in response to ADP’s lawsuit.