Uncertainty in the Foodservice Market and Competition for Value-Added Offerings

「In the food-service industry as well, consumers remain highly cost-conscious because prolonged inflation and stagnant real-wage growth, while the operating environment remains challenging due to soaring raw-material and energy costs and rising labor expenses.」

「In addition to cost-push pressures from higher labor and logistics costs, climate change, escalating tensions in the Middle East and US tariff policies have combined to cause instability once again, driven by geopolitical risks.」

「The outlook for the economy has become more uncertain due to geopolitical risks and abnormal weather, in addition to the tariff increase policies of the U.S. administration.」

「Profit declined from the previous fiscal year because, in addition to higher food and labor costs, expenses related to investments in people, including intensified recruitment and employee development, and expenses associated with new store openings and store repairs also increased.」

「However, raw material and energy prices continue to soar against the backdrop of unstable international conditions and adverse weather. Prolonged inflation is also reducing domestic consumer spending appetite, making the securing of customer numbers and cost control continuing important management issues.」

「Meanwhile, unstable international conditions and the yen's depreciation have necessitated responses to higher raw material prices, logistics costs, labor costs and energy costs.」

「Meanwhile, the challenging operating environment continues, including heightened international tensions, soaring raw material and resource costs due to the yen's depreciation, higher energy costs and labor shortages,」

「However, price increases caused by global inflation and higher labor costs resulting from labor shortages continue,」

「The shortage of goods caused by Russia's invasion of Ukraine and China's zero-COVID policy, including lockdowns, has coincided with the rapid depreciation of the yen, making it an urgent issue to address soaring material and raw material costs and secure food ingredients.」

「In the environment surrounding the foodservice industry, higher food ingredient costs and logistics costs, as well as rising energy costs, have begun to emerge under the influence of recovering demand in Europe, the United States and China, and the company also regards these developments as management risks.」

「Even after the pandemic subsides, the outlook is expected to remain uncertain because prolonged weakness in consumption and changes in lifestyles resulting from digital transformation and telework are expected to reduce opportunities to go out and dine out.」

「The economic outlook is uncertain because of the economic crisis caused by the COVID-19 shock, both in Japan and overseas. In addition, people's lifestyles are changing rapidly toward a new normal, including staggered commuting and telework, alongside further digitalization.」

「In the third quarter, from 1 November 2019 to 31 January 2020, delivery and takeout services compatible with the reduced tax rate grew following the consumption tax increase, and consumers began showing a tendency to shift toward lower-priced options.」

「In the second quarter, from 1 May 2019 to 31 October 2019, competition to attract customers from other industries and business formats intensified against the backdrop of the consumption tax increase, while higher labor and logistics costs made conditions in the foodservice industry increasingly challenging.」

「Concerns also remain that the operating environment will continue to be challenging because consumers continue to economize in response to the higher consumption tax rate, while labor and raw material costs remain elevated due to labor shortages.」

「Consumer trends are shifting from an era of consumption aimed at satisfying the social need for mass production and mass consumption to a consumption mindset aimed at satisfying the need for self-actualization by choosing products and services suited to individual preferences.」

「In the third quarter, from 1 November 2018 to 31 January 2019, the foodservice industry continued to face a challenging operating environment due to soaring labor costs resulting from labor shortages, as well as increases in raw material and logistics costs.」

「In the first quarter, from 1 May 2018 to 31 July 2018, the foodservice industry was supported by a gradual economic recovery resulting from improvements in employment and income conditions, but raw material prices continued to rise as the yen gradually weakened, while labor costs increased amid labor shortages. As businesses began taking steps to reflect higher costs in prices, consumers also showed a growing tendency to economize, and uncertainty about the outlook continued.」

「The foodservice industry faces challenges including soaring raw material prices due to adverse weather, labor shortages and the resulting increase in labor costs. In addition, despite the gradual economic recovery, consumers have not shifted away from their preference for low prices, and the outlook remains uncertain.」

「In the third quarter, from 1 November 2017 to 31 January 2018, competition to attract customers across industry and business-format boundaries intensified amid a gradual economic recovery. The challenging operating environment also continued because of higher labor costs resulting from labor shortages and soaring food ingredient prices.」

「Political and economic developments overseas, including the situation surrounding North Korea, remain uncertain.」

「Overseas economies remain uncertain because of factors including the policies of the US administration and heightened geopolitical risks in Asia.」

「The foodservice industry is becoming increasingly challenging, with intensifying competition to attract customers seeking high-value-added offerings as social concern about food safety and security grows. In addition, as reported in the media, demographic changes have made it more difficult to secure younger workers, and hiring difficulties have become a serious problem.」

「Japan's economy in the third quarter showed signs of recovery due to gradual improvements in corporate earnings and employment conditions. However, the recovery continued in an uncertain environment because of risks including economic slowdowns in emerging markets, including China, the inauguration of a new US president and foreign exchange fluctuations.」

「During the second quarter, the foodservice industry continued to face a challenging operating environment, including ongoing increases in raw material prices and labor costs.」

「The outlook remains uncertain amid sharp fluctuations in foreign exchange and equity markets resulting from the Kumamoto earthquake, economic slowdowns in emerging markets including China, and issues such as the UK's withdrawal from the EU.」

「The outlook remains uncertain, owing to the possibility that the yen's depreciation will raise raw material prices and that economic downturns in emerging markets, including China, will weigh on the domestic economy, as well as concerns about an increase in the consumption tax rate. In addition, growing social concern about food safety and security has intensified competition to attract customers seeking high-value-added offerings, making the environment increasingly challenging.」