Leading fast food chains in China, including McDonald’s and KFC, have stopped using beef and poultry products from Husi Food Co following the allegations. The company is the Chinese arm of US-based supplier OSI group.
According to the Shanghai Municipal Food and Drug Administration (FDA) department, production was now suspended and investigations were being carried out in conjunction with the public security department over the claims the company had been re-using expired raw materials in its production and processing of food.
If the allegations are proven, the FDA said the company would face a "heavy" price.
The claims were made following undercover filming from a local television channel, with hidden cameras allegedly showing workers scooping up meat from the floor and using out-of-date beef and chicken to make burger patties and chicken products for both McDonald’s and KFC.
International coffee giant Starbucks has become the latest chain to suspend trading with the company. Meanwhile, parent company OSI is reported to be "appalled" at the allegations, and while it claims the incident was an isolated event, it has promised swift action.