Food sourcing uncertainty and rising food prices

「In terms of costs, the cost ratio increased by 0.65 percentage points from the previous quarter to 107.1% of the previous period, indicating a higher burden. This was absorbed through the effect of higher revenue and control of miscellaneous expenses.」

「In particular, basic raw materials such as coffee beans, flour, dairy products and eggs, which are core products handled by the Company, continue to be directly affected by international market conditions, creating an environment in which sudden cost increases for specific materials are likely to occur.」

「In the food-service industry, performance remained solid due to higher average spend per customer following price revisions and inbound demand, and sales for the period reached a record high. However, the operating environment remains challenging because of increases in food and labor costs.」

「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.」

「Since 2022, food prices have continued to rise against a backdrop of increased instability in international conditions, the continuing trend toward a weaker yen and higher logistics costs. In particular, prices of basic raw materials such as coffee beans, flour, dairy products and eggs, which are core products handled by the Company, have been highly volatile both in Japan and overseas, posing a threat to the stability of store operations.」

「The difficult operating environment continues, including heightened international tensions, higher raw material and resource costs due to the weaker yen, rising energy costs and labor shortages,」

「The egg shortage caused by the current avian influenza outbreak has become increasingly severe, affecting the production of cakes, baked goods and other products as the available quantities of liquid eggs and egg whites, used primarily for commercial purposes, have been cut in half.」

「In addition to higher food and energy costs, we are pursuing value engineering in the menus we offer amid labor shortages,」

「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.」

「Depending on future developments in the infectious disease, a decline in the Company's revenue or higher costs, including increased procurement prices, could affect its business condition and operating results.」

「However, disease outbreaks such as avian influenza, adverse weather and natural disasters may cause uncertainty over food supplies and increases in food prices, potentially forcing changes to some menu items.」

「We are currently operating with close attention to the safety of customers and employees while implementing infection-control measures based on industry guidelines and other standards. However, depending on future developments in the infectious disease, a decline in the Company's revenue or higher costs, including increased procurement prices, could affect its business condition and operating results.」

「However, disease outbreaks such as avian influenza, adverse weather and natural disasters may cause uncertainty over food supplies and increases in food prices, potentially forcing changes to some menu items and affecting the Company's business performance.」

「There are concerns that difficult operating conditions may continue due to higher labor costs resulting from labor shortages, rising raw material costs and other factors.」

「However, disease outbreaks such as avian influenza, adverse weather and natural disasters may cause uncertainty over food supplies and increases in food prices, potentially forcing changes to some menu items and affecting the Company's business performance.」

「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.」

「Rising raw material prices due to the gradual depreciation of the yen and higher labor costs resulting from labor shortages continue.」

「However, disease outbreaks such as avian influenza, adverse weather and natural disasters may cause uncertainty over food supplies and increases in food prices, potentially forcing changes to some menu items and affecting the Company's business performance.」

「In addition, the difficult business environment caused by higher labor costs resulting from labor shortages and rising food prices continues.」

「In the food service industry, personal consumption showed signs of recovery, but the industry continues to face difficult conditions due to challenges including higher unit costs for raw materials, a shrinking market caused by population decline and a shortage of young workers.」

「However, disease outbreaks such as avian influenza, adverse weather and natural disasters may cause uncertainty over food supplies and increases in food prices, potentially forcing changes to some menu items and affecting the Company's business performance.」

「Disease outbreaks, adverse weather and natural disasters may cause uncertainty over food supplies and increases in food prices, potentially forcing changes to some menu items.」