Tokyo, June 8 - Burger King, the world's No.2 hamburger chain, sees a trans fat-free fastfood industry by the end of 2008 if oil supply holds, CEO John Chidsey said on Friday.
"We have found oils that will work and the only reason we haven't been specific on the date (to switch), unlike our competitors, is there is not a lot of supply," he told Reuters.
"Certainly by the end of '08, subject to supply, because now for ourselves, for McDonald's, for Wendy's, (it) doesn't exist."
Trans fat increases the low-density lipoprotein -- so-called bad cholesterol -- in food that clogs arteries, and health officials have advised consuming as little as possible.
Chidsey, in Tokyo to open Burger King Holdings' first restaurant since pulling out of Japan in 2001, said Japanese outlets would all be trans fat-free from the start, using locally or Asian-sourced oils.
Burger King is testing a variety of healthier oils in hundreds of U.S. restaurants in five markets, saying a decision would be based on supply, taste and operational issues.
Some U.S. cities have banned artificial trans fats from restaurants in recent months, with a New York City ban in effect from summer and Philadelphia's phased in over the next 18 months.
Chidsey said all local deadlines for switching would be met.
A nutrition advocacy group sued Burger King in May over the use of frying oil containing trans fats, which the company called baseless, adding it was committed to eliminating trans fats.
Wendy's International Inc., Yum Brands Inc.'s KFC and Taco Bell units, Starbucks Corp. and McDonald's Corp. have either made the switch to healthier oils or say they are working on replacing currently used oils.
"Assuming growers do what they're supposed to, I think the industry will very close to trans fat-free by '08," Chidsey said.
BEEFING UP EXPANSION
Burger King left Japan six years ago in a pricing war with rival McDonald's Japan, but is back running under South Korea's Lotte Group and turnaround firm Revamp Corp., pushing a "Whopper" menu priced about 30 percent more than a Big Mac.
"People will pay. They notice the difference in quality (and) the Japanese market will demonstrate that," Chidsey said.
The chain plans to open eight Japan restaurants serving New Zealand beef by the end of March and 50 in the next three years.
"Those numbers will ramp up. I think 50 will end up being an understatement."
Burger King has more than 11,200 restaurants in 65 countries and eyes India and China in further expansion.
The company says it is in discussions with Pantaloon Retail India Ltd., the nation's top retailer, and other firms on entering India, while Chinese growth is under way.
"You will see in the next couple years a series of franchise deals that allow us to expand much more rapidly in China."
He said 2007 growth was overwhelmingly international.
"In a couple of weeks, we'll finish a year in which we'll build just a little under 500 restaurants, 80 percent of which are outside the U.S., because that's where all the growth is."