Declining Consumer Sentiment and Same-Store Sales

「As selective consumption has become entrenched against a backdrop of high prices, consumers have become more cautious in choosing how to spend. While average spending per customer remains on an upward trend as price increases take hold, total customer traffic is sluggish due to greater selectivity between formats and the effects of typhoons, torrential rain and other adverse weather.」

「As consumers have become more stringent in their spending choices, including the entrenchment of selective spending driven by rising prices, the number of visitors across the industry has tended to remain sluggish. The difficult operating environment continues, particularly as the recovery in visitor numbers has stalled in business formats centered on alcohol.」

「In the food service industry, demand has remained firm, supported by more selective spending and an increase in inbound visitors, but a difficult operating environment is expected to continue due to persistently high energy prices, continued yen depreciation, and further increases in raw material prices resulting from abnormal weather, as well as an expected labor supply shortage, although an easing of the situation is anticipated from the higher income threshold for social insurance coverage.」

「Although solid demand has continued due to the recovery in corporate entertainment expenses following tax reform and an increase in visitors to Japan, the foodservice industry is expected to continue facing a challenging operating environment. Energy and resource prices are expected to rise further, as are raw-material prices due to the continuing weakness of the yen and abnormal weather, while shortages in the supply of human resources are becoming more severe. In Japan, real wages have only recently turned positive, but it remains unclear whether this will become an established trend, so consumers' tendency toward selective consumption is expected to strengthen further. Overseas, meanwhile, signs of inflation fatigue have begun to emerge in countries such as the United States, which warrants close monitoring going forward.」

「Although solid demand, including inbound demand, has continued as the impact of COVID-19 shows signs of subsiding, the foodservice industry is expected to continue facing a challenging operating environment. Further increases in raw-material prices due to the weaker yen are anticipated, while shortages in the supply of human resources are becoming more severe. In addition, as wage increases and inflation are expected to continue, consumers' tendency toward selective consumption is expected to strengthen further.」

「However, the economic outlook remains uncertain due to the continued entrenchment of selective consumption following the prolonged impact of COVID-19, stronger consumer concerns about protecting their livelihoods as real wages remain negative, the continuing depreciation of the yen in foreign exchange markets, logistics constraints associated with the 2024 logistics issue, and continued surges in raw-material and resource prices caused by geopolitical risks associated with the prolonged Russia-Ukraine situation.」

「As the spread of COVID-19 slowed, restrictions on behavior were eased, and on 8 May 2023 COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law. These and other factors led economic activity to begin moving toward normalization. In addition, the extension of nationwide travel support and the increase in visitors to Japan provided support, and personal consumption showed signs of recovery.」

「In addition to the full lifting of priority preventive measures to prevent the spread of disease in March and the easing of restrictions on behavior, various policies, including the nationwide travel support program, helped create conditions in which economic activity showed signs of a gradual recovery.」

「However, since July, consumer behavior has shown signs of restraint due to the impact of the seventh wave of COVID-19. The outlook remains uncertain, owing also to surging global resource prices, heightened international tensions and the rapid depreciation of the yen.」

「Although the impact of COVID-19 has been prolonged, the priority preventive measures to prevent the spread of disease that had been in effect since January 2022 were fully lifted on 21 March, and economic activity has gradually begun to recover, helped by the effects of wider vaccination and the easing of border-control measures.」

「The company was required to respond to changes in lifestyles, including the spread of remote work and restraint from holding business meals. In addition, customer numbers continued intermittently to decline as a result of requests associated with declarations of a state of emergency issued by the government and local governments and the application of priority preventive measures to prevent the spread of disease, including requests to refrain from operating and to reduce operating hours. However, the challenging operating environment improved, supported by subsidy programs provided by local governments.」

「The foodservice industry was required to respond to changes in lifestyles, including the spread of remote work and companies' restraint from holding business meals. In addition, customer numbers continued to decline as a result of requests associated with declarations of a state of emergency issued by the government and local governments and the application of priority preventive measures to prevent the spread of disease, including requests to refrain from operating and to reduce operating hours. However, the challenging operating environment improved, supported by subsidy programs provided by local governments.」

「However, if events occur such as a renewed declaration of a state of emergency or a prolonged time to bring COVID-19 under control, they may have a significant impact on the group's business performance.」

「The COVID-19 pandemic, which spread rapidly worldwide, has had a significant impact on the business activities of the group, which operates both domestically and internationally.」

「The foodservice industry continues to face a challenging operating environment affected by COVID-19, including a decline in customer numbers due to requests from local governments to refrain from operating or to reduce operating hours, in addition to requests for people to refrain from going out. In urban areas in particular, the expansion of remote work by major companies and others has further reduced business meals and banquets.」

「Following the government's declaration of a state of emergency, many of the group's stores, including those in commercial facilities that were temporarily closed and izakaya-format stores in entertainment districts, were forced to close temporarily. After the state of emergency was lifted, operations resumed in stages, and revenue has been recovering despite fluctuations driven by the course of the COVID-19 pandemic. However, some stores have continued to be forced to reduce their operating hours, while all stores have had to operate with measures to maintain social distancing, including spacing between seats, to prevent the spread of infection.」

「As a result, revenue for the first quarter of the current consolidated cumulative period was ¥11,812 million, down 63.0% year on year.」

「Following the declaration of a state of emergency related to COVID-19, many of the group's stores, including those in commercial facilities that were temporarily closed and izakaya-format stores in entertainment districts, were forced to close temporarily. Many stores continue to operate with reduced hours, and revenue has declined significantly.」

「Although consumption is showing signs of recovery, the foodservice industry continues to face an operating environment that cannot be viewed optimistically, including higher labor costs due to prolonged labor shortages and the introduction of a reduced tax rate in connection with the consumption tax increase beginning in October 2019.」

「Although consumer sentiment is showing signs of recovery, the foodservice industry continues to face a challenging operating environment, including higher labor costs due to prolonged labor shortages.」

「Although consumer sentiment is showing signs of recovery, the foodservice industry continues to face a challenging operating environment, including higher labor costs due to prolonged labor shortages.」

「Although consumer sentiment is gradually improving, the foodservice industry continues to face a challenging operating environment, including persistently high raw-material prices driven by rising logistics costs, higher labor costs due to prolonged labor shortages, and the effects of natural disasters such as the Northern Osaka Earthquake and adverse weather, particularly in western Japan.」

「Although consumer sentiment is gradually improving, the foodservice industry continues to face a challenging operating environment, including persistently high raw-material prices driven by rising logistics costs, higher labor costs due to prolonged labor shortages, and the effects of natural disasters such as the Northern Osaka Earthquake and adverse weather, particularly in western Japan.」

「Although consumer sentiment is gradually improving, the foodservice industry continues to face a challenging operating environment, including persistently high raw-material prices driven by rising logistics costs, higher labor costs due to prolonged labor shortages, and the effects of natural disasters such as the Northern Osaka Earthquake and adverse weather, particularly in western Japan.」

「Although consumer sentiment is gradually improving, the foodservice industry continues to face a challenging operating environment, including persistently high raw-material prices driven by rising logistics costs and higher labor costs due to prolonged labor shortages.」

「The foodservice industry in which the group operates has seen a tendency for foodservice operators' same-store sales to decline, owing to factors including weaker consumer sentiment as households have become more focused on protecting their livelihoods, and growth in the prepared-food market, in which prepared ingredients and side dishes are taken home for consumption.」

「The foodservice industry continues to face a challenging operating environment, including persistently high raw-material prices driven by rising logistics costs, higher labor costs due to prolonged labor shortages, and the effects of adverse weather.」

「Although personal consumption is gradually recovering, the foodservice industry continues to face a challenging operating environment, including persistently high raw-material prices driven by rising logistics costs and higher labor costs due to prolonged labor shortages.」

「The foodservice industry continues to face a challenging operating environment, including persistently high raw-material prices driven by rising logistics costs, higher labor costs due to prolonged labor shortages, and consumers' still-strong preference for saving.」

「Same-store sales at foodservice operators have tended to decline, owing to factors including weaker consumer sentiment as households have become more focused on protecting their livelihoods, and growth in the prepared-food market, in which prepared ingredients and side dishes are taken home for consumption.」

「However, personal consumption has remained stagnant and the outlook continues to be uncertain, owing to a weaker-than-expected economic outlook in overseas markets, including emerging Asian economies such as China and resource-rich countries, the UK's withdrawal from the EU, increasing instability in stock prices and foreign exchange markets, and stronger consumer preferences for saving. The foodservice industry continues to face a challenging operating environment, including intensifying competition not only from competitors but also from other industries and business formats, including the prepared-food market, persistently high raw-material prices, rising logistics costs, higher labor costs due to labor shortages, cooling consumer sentiment and external factors such as adverse weather.」

「The foodservice industry continues to face a challenging operating environment, including intensifying competition not only from competitors but also from other industries and business formats, including the prepared-food market, persistently high raw-material prices, rising logistics costs, higher labor costs due to labor shortages, and signs that consumer sentiment is beginning to weaken.」

「The foodservice industry continues to face a challenging operating environment, including persistently high raw-material prices, rising logistics costs, higher labor costs due to labor shortages, and signs that consumer sentiment is beginning to weaken.」