Labor shortages and rising personnel costs

「The domestic restaurant operations business reported higher revenue as personal consumption recovered with improved income conditions and inbound consumption remained solid. However, operating profit deteriorated due to higher costs such as raw material prices, logistics costs, and labor costs, as well as a decline in customer numbers at existing stores caused by climate-related factors including extremely hot and lingering hot weather.」

「During the period covered by this segment for the interim consolidated accounting period from 1 January 2025 to 30 June 2025, it was affected by soaring raw material prices and higher costs such as wages and rent due to inflation. Cost reductions are being pursued through price revisions and reviews of staffing allocations. However, customer numbers have declined due to economic instability around the world, abnormal weather, and deteriorating public safety resulting from demonstrations and other factors. As a result, revenue declined year on year, and the higher fixed-cost ratio, including labor costs, put pressure on operating profit.」

「Outside Japan, it was affected by soaring raw material prices and higher costs such as wages and rent due to inflation.」

「During the period covered by this segment for the interim consolidated accounting period from January 2024 to June 2024, it was affected by soaring raw material prices and higher costs such as wages and rent due to inflation. Although price revisions and cost reviews have been implemented accordingly, price pass-through to cover the increased costs has not kept pace.」

「Population aging and declining birth rates are evident not only in Japan but also in other developed countries, and competition to secure personnel is intensifying across industries.」

「To address rising costs, including labor and raw material costs, we implemented a price revision in July 2023, following the previous fiscal year.」

「Economic conditions remain challenging due to higher raw material and energy prices, rising labor costs, the weaker yen that has continued since last year, and concerns about an economic slowdown resulting from soaring prices.」

「In Japan, since March 2022, there have been no restrictions such as shortened business hours under the priority preventive measures to prevent the spread of COVID-19, and entry restrictions have been gradually eased. However, economic conditions remain challenging due to higher raw material and energy prices, rising labor costs, and the rapid depreciation of the yen.」

「In Japan, restrictions such as shortened business hours under the priority preventive measures to prevent the spread of COVID-19 were lifted in March 2022, and entry restrictions were gradually eased. However, the domestic foodservice industry continues to face challenging economic conditions due to higher raw material and energy prices, rising labor costs, and the depreciation of the yen.」

「Soaring raw material prices due to growing global demand for meat, higher labor costs resulting from labor shortages, and higher logistics costs resulting from labor shortages in the transport industry are expected to continue.」

「Soaring raw material prices due to growing global demand for meat, rising wages, and higher logistics costs resulting from labor shortages in the transport industry are expected to continue, and we believe that further strengthening our earnings capacity will become an increasingly important management issue.」

「In Japan, raw material prices, logistics costs, and wages have been trending higher due to growing global demand for meat, while」

「Although the domestic restaurant operations business continued to implement operational improvements, including more efficient store operations through the introduction of IT systems and commercial logistics reforms aimed at reducing logistics costs, the fixed-cost ratio, including land and building rents, rose as a result of lower fourth-quarter revenue, while the impact of higher labor and logistics costs continued, which became a factor behind the decline in profit.」

「Although the segment continued to implement operational improvements, including commercial logistics reforms aimed at improving the efficiency of store operations and reducing logistics costs, the ongoing impact of higher labor and logistics costs resulted in segment profit of ¥510 million, down 27.6% year on year.」

「Although the segment continued to implement commercial logistics reforms aimed at improving the efficiency of store operations and reducing logistics costs, the ongoing impact of higher labor, raw material, and logistics costs resulted in segment profit of ¥379 million, down 7.3% year on year.」

「Although the segment focused on improving productivity, including by reviewing production and manufacturing processes, and on reducing costs, segment profit was ¥104 million, down 7.2% year on year, as higher labor and raw material costs, as well as significantly higher logistics costs for delivering food ingredients to stores, had a major impact.」

「The Company was unable to fully absorb rising labor and raw material costs and higher logistics costs across the foodservice industry, which became factors behind the decline in profit.」

「In addition to soaring employee wages resulting from labor shortages and the upward trend in raw material prices, the impact of soaring logistics costs has also become pronounced, and these factors have become ongoing management issues.」

「Although the segment focused on improving productivity, including by reviewing production and manufacturing processes, and on reducing costs, segment profit was ¥409 million, down 22.1% year on year, due in part to higher labor and raw material costs, as well as higher logistics costs for delivering food ingredients to stores.」

「In addition to soaring employee wages resulting from labor shortages and the upward trend in raw material prices, the impact of soaring logistics costs has also become pronounced, and these factors have become ongoing management issues. As a result, revenue for the first quarter of the current consolidated cumulative period was ¥6,334 million, up 9.8% year on year, while operating profit was ¥87 million, down 15.3% year on year, as selling, general and administrative expenses increased mainly due to higher labor and logistics costs in the domestic restaurant operations business.」

「In addition to rising employee wages resulting from labor shortages and the upward trend in raw material prices,」

「Rising employee wages resulting from labor shortages have become an ongoing management issue, among other factors,」

「Rising employee wages resulting from labor shortages have become an ongoing management issue, among other factors,」

「Rising labor costs resulting from labor shortages have become an ongoing management issue, among other factors,」