The Foodservice Industry’s Business Conditions and Dependence on Fee-Paying Member Locations and Contract Volume per Location

「The food-service industry currently faces serious challenges, including higher raw-material and utility costs due to rising crude-oil prices accompanying the recent instability in the Middle East and the resulting broad-based inflation, as well as increasing labor costs caused by structural labor shortages.」

「In the food-service industry targeted by our services, consumer spending on eating out was trending higher compared with the same period of the previous year. According to the Food Service Industry Market Trend Survey conducted by the Japan Food Service Association, restaurant sales increased as both customer numbers and average spend per customer grew, although the operating environment remained challenging due to soaring raw-material prices, labor shortages and other factors.」

「In addition, heightened geopolitical risks, including developments in U.S. policies such as trade policy and tensions between the United States and China, may cause an economic slowdown or a decline in inbound visitors, leading to lower restaurant sales and deterioration in restaurant operations.」

「In the food-service industry targeted by our services, consumer spending on eating out and inbound demand were on a recovery track, but the operating environment remained challenging and uncertain due to higher raw-material prices, labor shortages and other factors.」

「In the food-service industry targeted by our services, consumer spending on eating out and inbound demand were on a recovery track, but the operating environment remained challenging and uncertain due to higher raw-material prices, labor shortages, the start of repayments on special loans provided during the COVID-19 pandemic and other factors.」

「Accordingly, if further worsening labor shortages, soaring raw-material prices and utility costs, or changes on the consumer side, such as the spread of telework, the impact of requests to refrain from going out and other activity restrictions, and changes in restaurant-search behavior, lead to deterioration in restaurant profitability, performance may be affected by declines in the number of paid participating establishments and the contract amount per establishment.」

「Consumer spending on eating out in the food-service industry targeted by our services was also on a recovery track, but the operating environment remained challenging and uncertain due to higher raw-material prices and utility costs, labor shortages and other factors.」

「Consumer spending on eating out in the food-service industry targeted by our services was also on a recovery track, but the operating environment remained challenging and uncertain due to higher raw-material prices and utility costs, labor shortages and other factors.」

「Accordingly, if a renewed spread of COVID-19 or the situation in Ukraine has a significant impact on restaurant operations, performance may be affected by declines in the number of paid participating establishments and the contract amount per establishment.」

「The food-service industry targeted by our services also showed signs of recovery as requests to reduce operating hours and restrict the serving of alcoholic beverages were gradually eased. However, uncertainty about the outlook continued, including due to the emergence of new variants.」

「Revenue for the current consolidated fiscal year was ¥16,181 million, or 52.3% of the previous fiscal year. … The number of paid participating establishments decreased by 10,973 from the end of the previous fiscal year to 44,532.」

「However, infections began spreading again from December, and the outlook remained uncertain. Although demand had been recovering since June, supported by government demand-stimulation measures and other initiatives, restaurant operations are expected to remain extremely challenging due to changes in consumers' lifestyles and the renewed spread of infections from December onward.」

「Although billing to restaurants resumed in the second quarter, withdrawals by participating restaurants and reductions in contract amounts occurred at levels above the usual annual range against a backdrop of deteriorating cash flows and other factors. In addition, the recovery in demand for eating out stalled due to the resurgence of the infection, and revenue recovered only gradually to 50.9% of the previous year's level.」

「Revenue from restaurant promotion services was ¥1,475 million, down 78.9% year on year, due to declines in subscription-based revenue resulting from the fee waivers and membership suspensions described above, and lower online reservation commission revenue accompanying reduced demand for eating out.」

「Revenue from restaurant promotion services, which accounts for 90% of our Group's consolidated revenue, depends for its growth on increases in the number of paid participating establishments and the contract amount per establishment. It is therefore affected by business conditions in the food-service industry and changes in the sales-promotion policies of major customers. Accordingly, if the impact of the spread of COVID-19 on the operations of paid participating establishments continues because the outbreak does not subside, performance may be affected by declines in the number of paid participating establishments and the contract amount per establishment.」

「In the food-service industry targeted by our services, sales generally exceeded the previous year except in October, which was heavily affected by a major typhoon. However, the challenging operating environment continued due to worsening labor shortages and concerns about the impact of the consumption-tax increase on consumer sentiment. Revenue was ¥23,431 million, down 4.4% year on year.」

「Revenue from restaurant promotion services was ¥13,981 million, down 4.5% year on year, mainly because substantial reductions and cancellations by participating restaurants occurred in the previous fiscal year, and the decline in subscription-based revenue continued.」

「Revenue from restaurant promotion services was ¥6,982 million, down 7.3% year on year, mainly because substantial reductions and cancellations by participating restaurants occurred in the previous fiscal year, and the decline in subscription-based revenue continued.」

「Revenue from restaurant promotion services was ¥29,490 million, down 10.4% from the previous fiscal year, because substantial reductions and cancellations exceeding orders occurred through the second quarter, preventing subscription-based service revenue from accumulating.」

「At our company, amid growing caution toward sales promotion because of labor shortages at restaurants and the diversification of sales promotion methods accompanying changes in consumer behavior, substantial reductions and cancellations and sluggish orders for restaurant sales promotion services continued in the previous fiscal year. Accordingly, from the current fiscal year we have been expanding our methods of reaching users, strengthening operational support that helps address labor shortages at restaurants, and enhancing dialogue with restaurant operators and comprehensive proposals covering management as a whole through the 1,000-person support system. By the third quarter, we had seen improvements in orders and reductions and cancellations.」

「Amid a growingly cautious stance toward sales promotion against a backdrop of labor shortages at restaurants, and the diversification of sales-promotion methods accompanying changes in consumer behavior, reductions and cancellations of contracts among restaurants participating in our services increased from the previous fiscal year, while new and increased orders continued to be sluggish.」

「In the food-service industry targeted by our services, customer numbers fell below the previous year due to factors including weather, although average spend per customer increased. The operating environment also remained challenging, with food-ingredient prices and the job-offers-to-applicants ratio staying at high levels. In restaurant promotion services, subscription-based service revenue fell below the previous year because reductions and cancellations of contracts substantially exceeded the previous year in March and April, while new and increased orders remained sluggish.」

「Although sales in the food-service industry targeted by our services exceeded the previous year because both customer numbers and average spend per customer remained firm, the operating environment remained challenging due to labor shortages and higher food-ingredient prices. In restaurant promotion services, spot-service revenue expanded steadily, supported by growth in online reservations and the number of establishments adopting business-support services such as the “Gurunavi POS Register (Gurunavi POS+).” However, subscription-based service revenue fell below the previous fiscal year because worsening labor shortages led restaurants to adopt a more cautious stance toward growth investment, reductions in contract amounts occurred at levels above the usual annual range, and new and increased orders remained sluggish.」

「Although sales in the food-service industry targeted by our services exceeded the previous year because both customer numbers and average spend per customer remained firm, the operating environment remained challenging due to labor shortages and higher food-ingredient prices. Regarding performance for the nine-month period ended the third quarter of the current fiscal year, spot-service revenue expanded steadily, supported by growth in online reservations and the number of establishments adopting the “Gurunavi POS+” system. However, subscription-based services declined because reductions in contract amounts exceeded the previous year, primarily against a backdrop of worsening labor shortages at restaurants, and orders were sluggish. Revenue was ¥27,100 million, down 1.0% year on year.」

「Although sales in the food-service industry targeted by our services exceeded the previous year as customer numbers remained firm, consumers continued to show a strong preference for saving, and the operating environment remained challenging due to labor shortages and the resulting increase in labor costs. Regarding performance for the six-month period ended the second quarter of the current fiscal year, spot-service revenue performed well, supported by growth in online reservations. However, subscription-based services declined because reductions in contract amounts, primarily among major customers, remained high amid worsening labor shortages, and orders were sluggish. Revenue was ¥17,560 million, down 1.0% year on year.」

「Although spot-based services performed steadily against a backdrop of increased online reservations, subscription-based services declined slightly as major clients in particular increasingly reduced their contracted amounts amid uncertainty over the economic outlook and labor shortages. As a result, revenue from restaurant promotion services increased only slightly.」

「During the current period, Japan's economy remained on a moderate recovery track, supported by improving employment and income conditions. Sales in the food-service industry targeted by our services remained firm, driven by the fast-food segment, but the operating environment remained challenging, with consumer spending on eating out below the previous year for successive months, labor shortages, rising labor costs and higher food-ingredient prices. Business conditions also varied by segment.」

「Although sales in the food-service industry served by our services have remained solid, conditions vary by business format, and recently difficult conditions have also emerged, including soaring food ingredient prices.」

「Although sales in the food-service industry served by our services had remained solid, conditions have recently been difficult, with customer numbers declining in August due to adverse weather.」

「Food-service promotion services account for 91% of the group's consolidated net sales. Because growth in these services depends on increases in the number of paid member establishments and contract value per establishment, the services are affected by conditions in the food-service industry.」