OSAKA -- Duskin Co., the operator of Mister Donut shops in Japan, said Wednesday its president will step down in November over a scandal involving meat dumplings containing a banned additive.
Duskin President Takeshi Ueda announced his resignation after a committee set up by the firm submitted a report of its investigation into the fiasco and recommended the company leadership quit.
In May, the Osaka-based firm admitted it sold more than 13 million meat dumplings in 2000 containing the banned antioxidant t-butyl hydroquinone.
Duskin had announced a series of disciplinary measures, such as pay cuts, for Ueda and other executives.
But the committee criticized management, saying they "put priority on securing profit within the firm, and lacked the viewpoint of the general public."
As measures to reform the company, it called for a person representing consumers to sit on the firm's board and be responsible for quality control and customer responses.
Committee members also demanded that the number of executives be trimmed from the current 20 and that employees who have worked for the company for more than a year be allowed to purchase its shares.
According to Duskin officials, the firm lost between 8 billion yen and 9 billion yen due to the scandal, including 5 billion yen in compensation payments to franchise shops, which saw their sales plummet.
After receiving the report, Ueda told a news conference at company headquarters in Suita that the firm will strive to realize the recommendations and that he would resign at a shareholders' meeting in November, with his successor to be selected by mid-October.
The committee will continue to monitor progress in Duskin's reforms, company officials said.