Yum axes Banh Shop restaurant logo after Communism uproar

Following outcries from some members of the Vietnamese-American community, Yum Brands said it will change the logo for its newly opened Banh Shop concept restaurant.

The company told CNBC that it will be changing the logo for its Saigon street food restaurant, which opened in Dallas last week, after complaints that its five-pointed red star logo is associated with communism.

Yum Brands said that it will change the Banh Shop logo.
Banh Shop | Facebook

"It was never our intent to offend anyone, but we see we have made a mistake and in hindsight, we should have recognized this logo could be offensive. Therefore, and effective immediately, we are changing the logo and removing the red star from all materials and signage at the restaurant," said Jonathan Blum, Yum senior vice president and chief of public affairs wrote in an email provided to CNBC to the president of the Vietnamese-American Community of Greater Dallas.

A petition posted earlier on said that members of the Vietnamese-American community in the area "are hurt and offended by your chosen logo, a red star, which is a symbol of communism and will offend thousands of South Vietnamese refugees in my community. The heavy majority of Vietnamese living in the Dallas area are political and religious refugees who fled Vietnam when North Vietnamese communist rule started in 1975."

Read More Fast food chains serving up new concepts

Blum's email said that the company will design a new logo that may be reviewed, along with other aspects of the restaurant, by the group before they are finalized.

"It is important to us that our restaurant is enjoyed by all, and we hope you can let others know of our sincere apology for the mistake we have made and the actions we are taking to address it," Blum wrote.

Read More Yum cuts ties with China meat plant after scandal

Following the decision, Thanh Cung, the president of the Vietnamese-American Community of Greater Dallas, told CNBC by email he is "extremely thrilled" that Yum reached out to him and said the logo would be removed.

"I am happy because it means they are listening to the deep concerns and feelings of the Vietnamese-American Community (VAC), especially the South Vietnamese Refugees in Dallas area who fled from the brutality of North Vietnamese Communist regime after 1975," Cung added.

—By CNBC's Everett Rosenfeld and Katie Little.