(Yicai Global) July 17 -- Chinese hotpot chain Xiaolongkan has ended cooperation with a franchisee after the outlet was exposed to have offered clients two tons of hotpot base, prepared with recycled cooking oil.

The tainted broth had been sold in Yulin, northwestern Shaanxi province, between 2017 and 2019, Beijing News reported yesterday, citing a court decision released on June 28. The Chengdu-based parent said that it had cooperated with the local police to deal with the matter.

Five restaurant workers, who had mixed the unhygienic concoction, have been sentenced to a maximum of two years in prison with a fine of CNY170,000 (USD24,293) each.

Founded in 2014, Xiaolongkan started franchising in 2016. It is expected to open 1,000 stores worldwide this year.

It is highly illegal to recycle edible oils and yet, some merchants take the risk, legal professionals told the same news source. These actions are usually not carried out alone so all participants must be severely punished, they added.

Editor: Emmi Laine