Foodservice Market Contraction and Maturation of Consumer Needs
First written in FY2016. 14 of 32 entries say "Worsened", first in FY2017. Latest entry: FY2026.
The Monogatari moved to the "Worse" side of this theme in 2017, 3 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 33 of 49 companies on the "Worse" side.
4 other companies' latest entry also says "Other".
- FY2026Wage increases and inbound demand supporting consumption alongside rising costsAnnual report
「In the food-service industry, sustained wage increases and growing inbound demand are expected to underpin continued firmness in domestic consumption. At the same time, the challenging operating environment is expected to persist, owing to higher energy and raw-material prices resulting from US policy developments and the prolonged conflicts between Russia and Ukraine and in the Middle East.」
The Group identified sustained wage increases and inbound demand as factors supporting domestic consumption, while also citing US policies, the prolonged Russia-Ukraine and Middle East conflicts, and rising resource and raw-material prices. - FY2026-H1Resilient food-service demand alongside elevated operating costsAnnual report
「In the food-service industry, demand for dining out remained firm despite consumers’ continued preference for saving amid sustained price inflation. However, operating costs, including raw-material prices and labor costs, also continued to rise, and the business environment remains challenging.」
While demand for dining out was described as firm, the disclosure also cited a challenging environment in which consumers’ preference for saving due to high prices and operating costs, including raw-material and labor costs, continue to rise. - FY2025-H1WorsenedAnnual report
「In the food-service industry, demand for dining out has continued to recover, supported by increased foot traffic as activity restrictions were eased and by the recovery in inbound demand. However, the industry faces a challenging business environment due to higher raw-material prices, utility costs and labor costs, an increasingly severe shortage of available workers, and consumers’ stronger preference for saving amid sustained inflation.」
While indicating a recovery trend in demand for dining out, the disclosure described the shortage of available workers as becoming “more severe,” alongside higher raw-material, utility and labor costs and consumers’ preference for saving. - FY2024Wage increases providing support alongside rising costsAnnual report
「In the food-service industry, domestic consumer activity is expected to recover gradually, supported by sustained wage increases. On the other hand, the business environment is expected to remain challenging due to higher energy and raw-material prices resulting from uncertainty over the international situation and accelerating global inflation, and flexible management in response to changes in the environment is required.」
While indicating the prospect of a recovery in consumption supported by wage increases, the disclosure also cited a challenging environment resulting from the international situation, inflation, and higher energy and raw-material prices. - FY2024-Q3RestatedAnnual report
「In the food-service industry, demand for dining out has continued to recover, supported by increased foot traffic following the normalization of economic activity and the recovery in inbound tourism. However, the industry faces a challenging business environment as higher raw-material prices, utility costs and labor costs, together with sustained inflation, have strengthened consumers’ preference for saving.」
The disclosure continues to describe an environment in which recovering demand for dining out due to increased foot traffic and the recovery in inbound tourism coexists with higher raw-material, utility, labor and overall prices and consumers’ preference for saving. - FY2024-Q2Inbound tourism recovery alongside high costsAnnual report
「In the food-service industry, demand for dining out has continued to recover, supported by increased foot traffic following the normalization of economic activity and the recovery in inbound tourism. However, the industry faces a challenging business environment as surging raw-material prices, utility costs and labor costs, together with sustained inflation, have strengthened consumers’ preference for saving.」
While increased foot traffic and the recovery in inbound tourism supported a recovery trend in demand for dining out, surging raw-material, utility and labor costs coexisted with consumers’ preference for saving. - FY2024-Q1RestatedAnnual report
「In the food-service industry, demand for dining out has continued to recover as the normalization of economic activity has restored foot traffic. However, the industry faces a challenging business environment as higher raw-material prices, utility costs and labor costs, together with sustained inflation, have strengthened consumers’ preference for saving.」
The disclosure continues to describe an environment in which recovering demand for dining out due to restored foot traffic coexists with higher raw-material, utility, labor and overall prices and consumers’ preference for saving. - FY2023-Q3RestatedAnnual report
「In the food-service industry, demand for dining out has continued to recover as restrictions on activities related to COVID-19 have been eased. However, the industry continues to be affected by the shift from dining out to ready-to-eat and in-home meals due to lifestyle changes, as well as restrictions on dining out in large groups and going out at night. In addition, the industry faces a challenging business environment due to higher raw-material prices, utility costs and labor costs, while sustained inflation has strengthened consumers’ preference for saving.」
The disclosure continues to describe a challenging environment in which recovering demand for dining out coexists with the shift to ready-to-eat and in-home meals, restrictions on dining out in large groups and going out at night, higher costs, and consumers’ preference for saving. - FY2023-Q2WorsenedAnnual report
「Meanwhile, risks remain to the financial and capital markets from higher prices for energy resources and raw materials due to the prolonged Russian invasion of Ukraine and sharp exchange-rate fluctuations, as well as from the volatility associated with the global rise in policy interest rates. The outlook for the economy therefore remains uncertain.」
In addition to the existing impact of infectious diseases, the shift from dining out to ready-to-eat and in-home meals, and rising costs, the disclosure specifically identified the prolonged invasion of Ukraine, sharp exchange-rate fluctuations, and financial and capital market volatility risks associated with policy rate hikes. - FY2023-Q1RestatedAnnual report
「In the food-service industry, as the impact of COVID-19 has continued for an extended period, lifestyle changes have accelerated the shift from dining out to ready-to-eat and in-home meals, and the industry has been affected by self-restraint regarding dining out in large groups and going out at night. In addition, the business environment remains challenging due to higher utility and procurement costs and rising labor costs.」
The disclosure continues to describe a challenging environment marked by the shift from dining out to ready-to-eat and in-home meals, self-restraint regarding dining out in large groups and going out at night, and higher utility, procurement and labor costs. - FY2022-Q3WorsenedAnnual report
「In addition, energy resources such as crude oil and raw materials have become significantly more expensive. Further price increases are a concern given the outlook for a weaker yen, and the outlook for the economy remains uncertain due to the worsening social situation surrounding Ukraine.」
In addition to restrictions on consumer activity due to infectious diseases, the disclosure newly identified surging energy and raw-material costs, concerns about further price increases due to the weaker yen, and the worsening situation in Ukraine. - FY2022-Q2A challenging environment alongside eased restrictions on activities and lifestyle changesAnnual report
「In the food-service industry, requests from local authorities to refrain from operating have gradually been eased since October 2021, and economic activity has shown a gradual recovery. However, customer traffic has remained sluggish due to changes in lifestyles, including the entrenchment of remote work, the shift from dining out to ready-to-eat and in-home meals, and continued restrictions on dining out in large groups and going out at night, and the challenging business environment continues.」
While indicating the easing of requests to refrain from operating and a trend toward recovery in economic activity, the disclosure described sluggish customer traffic due to remote work, the shift to ready-to-eat and in-home meals, and restrictions on dining out in large groups and going out at night. - FY2022-Q1A challenging environment alongside signs of improvementAnnual report
「The food-service industry faced an extremely challenging business environment, including reduced operating hours in response to requests from local authorities to refrain from operating and a decline in customer traffic due to restrictions on dining out in large groups. However, signs of improvement have emerged despite the challenging environment, partly due to the expansion of subsidy programs by local authorities.」
While citing a decline in customer traffic due to shorter operating hours and restrictions on dining out in large groups, the disclosure also indicated signs of improvement from the expansion of local-government subsidy programs. - FY2021WorsenedAnnual report
「In the food-service industry to which our group belongs, the overall food-service market has been contracting due to the declining birth rate and aging population, as well as the expansion of the in-home and ready-to-eat meal markets, which can now provide high-quality products that meet customers’ needs. In addition, consumers’ individual values have continued to diversify and become more complex. Furthermore, the outlook for the economy remains uncertain due to the impact of the spread of COVID-19 and other factors, and an unpredictable situation is expected to continue, including requests to refrain from going out and requests from prefectural governments to suspend operations.」
The disclosure described an uncertain environment in which the food-service market continues to contract, consumer values diversify and become more complex, and requests to refrain from going out and suspend operations due to infectious diseases continue. - FY2021-Q3WorsenedAnnual report
「However, this was temporary, and when the state of emergency was reissued, the food-service industry continued to face an unprecedentedly challenging business environment due to requests from the government and local authorities to refrain from going out and to shorten business hours.」
The food-service environment is described as “unprecedentedly extremely challenging” as the temporary recovery trend gave way to the reissuance of the state of emergency and requests to refrain from going out and shorten business hours. This indicates the actual materialization of the risk. - FY2021-Q2WorsenedAnnual report
「Although business showed a temporary recovery after the lifting of the first state of emergency, supported by the backlash from consumers’ pandemic fatigue and initiatives such as the Ministry of Agriculture, Forestry and Fisheries’ “Go To Eat Campaign,” an extremely challenging business environment has continued due to requests from the government and local authorities to refrain from going out and to shorten business hours following the spread of COVID-19.」
While temporary recovery factors were identified, the food-service environment was described as “extremely challenging” due to the spread of the second and third waves and requests from the government and local authorities to refrain from going out and to shorten business hours. - FY2021-Q1WorsenedAnnual report
「In the food-service industry, the operating environment is changing significantly due to requests from local governments to refrain from operating to prevent the spread of COVID-19, the disappearance of inbound demand, and the decline in dine-in consumption and increase in takeout use resulting from the spread of telework and changes in lifestyles.」
In addition to the ongoing market contraction and maturation and rising costs, the disclosure specifically cited requests to suspend operations, the disappearance of inbound demand, declining dine-in business and increasing takeout due to the shift to remote work and changes in lifestyles. - FY2020WorsenedAnnual report
「The operating environment had remained difficult in the food-service industry due to persistently high raw-material prices, rising labor costs against a backdrop of chronic labor shortages, and the impact on revenue from natural disasters such as earthquakes and typhoons. It became unprecedentedly difficult after many stores curtailed operations, including through closures and shorter business hours, to prevent the spread of COVID-19.」
In addition to previously cited cost increases, labor shortages and natural disasters, store closures and shorter business hours due to COVID-19 were added, and the operating environment was described as unprecedentedly difficult. - FY2020-Q3WorsenedAnnual report
「In the food-service industry, the difficult operating environment continues due to persistently high raw-material prices, rising labor costs against a backdrop of chronic labor shortages, stagnant consumer sentiment following the consumption tax rate increase, and the impact on revenue from natural disasters such as typhoons and the spread of COVID-19.」
In addition to previously cited cost increases, stagnant consumer sentiment and natural disasters, the impact of the spread of COVID-19 on revenue was newly identified. - FY2020-Q2WorsenedAnnual report
「In the food-service industry, the difficult operating environment continues due to persistently high raw-material prices, rising labor costs against a backdrop of chronic labor shortages, stagnant consumer sentiment following the consumption tax rate increase, and the impact on revenue from natural disasters such as typhoons.」
The labor shortage is described as chronic, while stagnant consumer sentiment following the consumption tax rate increase and the impact on revenue from typhoons and other events are listed as factors contributing to the difficult operating environment. - FY2020-Q1WorsenedAnnual report
「In the food-service industry, the difficult operating environment continues due to persistently high raw-material prices, rising labor costs against a backdrop of labor shortages, and risks such as stagnant consumer sentiment ahead of an increase in the consumption tax rate.」
In addition to previously cited increases in raw-material prices and labor costs, the risk of stagnant consumer sentiment ahead of an increase in the consumption tax rate was newly identified. - FY2019-Q3RestatedAnnual report
「In the food-service industry, although signs of a recovery in consumption have emerged, the difficult operating environment continues due to persistently high raw-material prices and rising labor costs against a backdrop of labor shortages, as well as the impact on revenue from natural disasters such as earthquakes and typhoons.」
The difficult food-service environment continues, with signs of a recovery in consumption alongside rising raw-material prices and labor costs and the impact of natural disasters. - FY2019-Q2RestatedAnnual report
「In the food-service industry, although signs of a recovery in consumption have emerged, the difficult operating environment continues due to persistently high raw-material prices, rising energy costs and rising labor costs against a backdrop of labor shortages, as well as the impact on revenue from natural disasters such as earthquakes and typhoons.」
The difficult business environment continues, with signs of a recovery in consumption alongside rising raw-material, energy and labor costs and the impact of natural disasters. - FY2019-Q1WorsenedAnnual report
「In the food-service industry, although signs of a recovery in consumption have emerged, the difficult operating environment continues due to persistently high raw-material prices, rising energy costs and rising labor costs against a backdrop of labor shortages, as well as the impact on revenue from natural disasters such as earthquakes and typhoons.」
In addition to persistently high raw-material and labor costs, the impact of rising energy costs and natural disasters on revenue was explicitly identified, broadening the factors contributing to the food-service industry's difficult environment. - FY2018RestatedAnnual report
「In addition to the declining birthrate and aging population, the overall market is tending to contract as the home-meal replacement and prepared-food markets expand, making it possible to provide tasty meals that meet customer needs. The market is also maturing as consumer needs become more diverse and sophisticated.」
The contraction of the food-service market and maturing consumer needs continue to be cited as challenges in the business environment. - FY2018-Q3WorsenedAnnual report
「In the food-service industry, although signs of a recovery in consumption have emerged, the difficult operating environment continues due to persistently high raw-material prices and rising labor costs against a backdrop of labor shortages.」
Although signs of a recovery in consumption are evident, persistently high raw-material prices and rising labor costs against a backdrop of labor shortages were explicitly identified, clarifying the factors behind worsening cost conditions. - FY2018-Q2Signs of recovery in consumption alongside persistently high key costsAnnual report
「In the food-service industry, although signs of a recovery in consumption have emerged, key costs such as raw materials and labor remain elevated, including surging vegetable prices due to adverse weather, and the difficult operating environment continues.」
Although signs of a recovery in consumption are evident, the difficult operating environment continues due to surging vegetable prices caused by adverse weather and persistently high raw-material and labor costs. - FY2018-Q1RestatedAnnual report
「In the food-service industry, consumer spending remains sluggish due to a deep-rooted preference for saving, while key costs such as raw materials and labor remain elevated, and the difficult operating environment continues.」
Sluggish consumption due to consumers' preference for saving and persistently high raw-material and labor costs continue to be cited as factors contributing to the difficult operating environment in the food-service industry. - FY2017WorsenedAnnual report
「In the food-service industry, consumer spending remains sluggish due to a deep-rooted preference for saving, while key costs such as raw materials and labor remain elevated, and the difficult operating environment continues.」
In addition to market contraction and maturation, sluggish consumption due to consumers' preference for saving and persistently high raw-material and labor costs were explicitly identified as external concerns. - FY2016First statedAnnual report
「In addition to the declining birthrate and aging population, the overall market is tending to contract as the home-meal replacement and prepared-food markets expand, making it possible to provide tasty meals that meet customer needs. The market is also maturing as consumer needs become more diverse and sophisticated.」
The current external environment is described as one of market contraction and maturing consumer needs.