FOCUS: Scandal Puts Ministop’s Handmade Onigiri at Crossroads

Tokyo, Nov. 28 (Jiji Press)–Revelations that convenience store chain Ministop Co. falsified expiration dates on fresh foods have left its in-store prepared items, most notably its signature handmade “onigiri” rice balls, at a critical juncture. The company has introduced safeguards to prevent a repeat of the irregularities, including installing surveillance cameras in kitchen areas and tightening controls on product labeling. It resumed sales on Oct. 15 at two company-operated stores in Chiba, east of Tokyo. A full-scale restart remains uncertain, however, as many franchisees remain cautious after the expiration date fraud eroded customer trust. The scandal could reduce operating profit by more than 1 billion yen in the September-February fiscal second half. At a news conference in Chiba marking the resumption of handmade onigiri sales, Ministop President Masashi Hotta emphasized that freshly prepared food is central to the company’s identity. “Our management philosophy centers on selling onigiri made from rice cooked in store–something you won’t find at other conventional convenience stores. Without them, we wouldn’t be Ministop,” Hotta said. This summer, Ministop acknowledged that workers at 25 domestic stores falsified consume-by dates on onigiri and deli items and other foods prepared in store. Staff extended the shelf life by delaying the addition of labels until after the production time or by replacing labels on items already on display. The apparent aim was to lighten workloads and reduce food waste. While no causal link has been established, two customers who purchased food at Ministop reported being ill. Freshly prepared in-store items offer superior taste, but they demand careful oversight because their shelf lives are typically shorter than those of factory-made products. After the issue came to light, the company suspended sales of such items at all of the roughly 1,600 stores that carried them. The impact on earnings has been significant. Operating profit for the March-August fiscal first half fell by more than 400 million yen, reflecting weaker sales of onigiri and other products as well as support costs for franchisees. The company projects an additional hit of about 1 billion yen in the second half. To prevent a recurrence, Ministop now requires store staff to scan their name badges with the labeling equipment whenever they affix labels, allowing the company to identify who handled each item. If a label is applied outside scheduled production times, head office managers are alerted. If fraud is suspected, the worker’s actions are reviewed from surveillance footage. The company has also cut the range of onigiri, “bento” boxed meals and deli items prepared in store to one-third of its previous level, from 70 to 23, to lighten the quality-control workload. Ministop has set up a hygiene audit office at its headquarters to oversee product safety, staffed by eight senior employees dedicated to continuous oversight. Outlets that plan to resume in-store food preparation must first pass stricter hygiene inspections. The company has also strengthened training for all employees on quality control and legal compliance. Ministop is negotiating to terminate franchise agreements with the owners of the 25 stores implicated in the mislabeling scandal, officials said. After implementing new safeguards, Ministop aimed to resume sales of store-prepared foods at about 60 locations, including franchise outlets, by the end of October, with additional stores coming back online subsequently as they are ready. The intense media scrutiny has given some owners pause, with many saying they will “take time to consider” whether to restart in-store food sales. There is no assurance that sales will return to prescandal levels. “All we can do is move forward with steady preparation” a company official said. END [Copyright The Jiji Press, Ltd.]