Rat in a hot pot wipes millions off Chinese restaurant chain’s value

Rat in a hot pot wipes millions off Chinese restaurant chain's value

 The rat story comes amid heightened concerns about food safety in China. Photograph: Fred Dufour/AFP/Getty Images

Shares plunge after pair forced to fish unwanted meat from their dinner

Video footage of a diner protecting the rat with a pair of chopsticks circulated on social media and a file of the incident seemed on 7 September. through Tuesday, shares within the restaurant’s parent corporation, Xiabuxiabu Catering control, had fallen 12%.

A man recognized handiest with the aid of his surname, Ma, said his wife had discovered the rodent. “She turned into so scared that she threw her chopsticks out right now,” he told the local internet site in Shandong province.

Ma stated the eating place supplied him and his wife, who turned into pregnant, 5,000 yuan (US$730) in repayment, however they refused due to the fact they first wanted to visit the medical institution.

Food safety is specifically touchy in China where purchasers have witnessed incidents from buns packed with cardboard, the use of gutter oil, and counterfeit infant formulation. hot pot restaurants have been observed to apply faux meat as well as chemical compounds to mask the smell or taste of rotten meat.

Xiabuxiabu, whose shares have recovered, said in a announcement on 10 September that in response to reviews of a “foreign item” at one in all their eating places, it had closed that eating place, which would now go through a “full self-examination”.

The business enterprise stated it had installation a team to conduct an research of the incident and could submit the consequences of that look at. “At present, we are nonetheless communicating with the clients and actively negotiating answers,” it said.

Xiabuxiabu, one of the maximum popular warm pot chains inside the u . s . a ., has greater than 750 shops in China. remaining 12 months, its rival Haidilao hosted webcams to live-stream its food practise process after media reports uncovered the chain’s use of rat-infested kitchens.