Japanese restaurant chain's stock plunges after rodent found in soup
What's the story
Zensho Holdings, the parent of the popular Japanese restaurant chain Sukiya, has seen a sharp fall in its stock value. The plummet was set off by reports of a dead rodent found in a customer's miso soup. This incident made the company's shares fall by as much as 7.1%, their largest drop since February 13.
Incident details
Rodent found in miso soup at Tottori branch
The rodent was found in a miso soup at Sukiya's Tottori branch, in western Japan. The animal had entered the dish while it was being prepared on January 21 even as the staff "failed to notice" the animal. The restaurant chain has now apologized for not reporting the incident earlier, saying it left many customers "anxious and worried."
Steps taken
Sukiya's response and future measures
In the wake of the fiasco, Sukiya vowed to step up hygiene measures. The long-term impact on Zensho's shares will largely depend on whether the incident leads to a drastic drop in customer footfall, according to Shoichi Arisawa, an analyst at Iwai Cosmo Securities. Sukiya operates around 2,000 outlets throughout Japan and is well-known for its beef rice bowls.
Market analysis
Sukiya's stock performance and expert opinion
Until this incident, Zensho's shares had been doing quite well, up around 25% in the last year. The increase was attributed to the expected profit boost from recent price hikes. However, Arisawa believes the incident, while affecting future sales and profits, doesn't indicate a structural problem with the business. "I don't think the incident reflects a structural problem with the business," he said.