Shares of Zensho Holdings Co., the parent company of Sukiya, fell 7.1%, marking their biggest drop since February 13.

The crash followed a claim by a customer who discovered a dead rat in miso soup at a Tottori branch.

Sukiya acknowledged that the January 21, 2025, incident was due to staff negligence, as they failed to notice the rodent during food preparation.

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However, the two-month delay in addressing the issue sparked outrage among consumers. The company formally apologised on March 22, promising stricter food safety measures in the future.

Market impact

Following the controversy, Zensho Holdings’ stock closed down 4.72% at 8,123 yen on March 24, a sharp reversal for a company whose shares had surged 25% over the past year due to rising profits after price hikes.

Analysts believe the long-term impact depends on whether the brand can restore consumer trust.

The scandal highlights the critical role of quality control and consumer confidence in the business world — where a single mistake can result in significant financial losses.