Ontario Poultry Supplier Sues Popeyes for $35 Million Over Terminated Contract

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An Ontario poultry supplier is taking legal action against Popeyes Louisiana Kitchen, filing a $35-million lawsuit after allegedly being dropped as a vendor. According to court documents filed in May, Toronto-based ADP claims it lost its multi-year contract with the fast-food chain after raising alarms about questionable food safety practices from an unlicensed competitor.

The lawsuit alleges that an unauthorized supplier—Amjad Farooq Inc.—was distributing raw chicken deemed unsafe for consumption, sometimes out of residential garages, and using non-refrigerated vehicles for transport. ADP claims it reported these issues to Popeyes’ corporate leadership, expecting action. Instead, they say their own contract, which was set to run through 2027, was abruptly terminated.

In addition to Popeyes, ADP is also suing Amjad Farooq Inc. for $10 million, accusing the company of interfering with its business relationship and contributing to the loss of the contract.

Popeyes, which in Canada is owned by Restaurant Brands International (also the parent company of Tim Hortons and Burger King Canada), has responded by dismissing the allegations. A company spokesperson stated there is “no evidence” to back ADP’s claims and suggested the lawsuit is a response to losing the contract for undisclosed “legitimate reasons.”

As of now, none of the allegations have been proven in court. The outcome remains uncertain, with a settlement still a possibility if either party chooses to resolve the matter outside of litigation.