Intensifying Competition and Market Contraction in the Food Service Industry

「The global economy during the consolidated fiscal year under review remained uncertain, with raw material and energy prices staying high due to the situations in Russia and Ukraine and the Middle East, higher labor costs due to wage increases and the declining working-age population, and concerns about an economic slowdown resulting from global inflation stemming from US tariff policies.」

「原材料及びエネルギー価格の上昇、長期間に及ぶ円安による輸入コスト増加等による物価高騰に伴う景気減速の懸念、人手不足等による人件費の上昇が重なり、引き続き厳しい経済状況にあります。」

「In Japan, economic activity has been robust as personal consumption has expanded on improved income conditions and increased movement of people, and consumption has also expanded with further growth in inbound tourism. However, economic conditions remain challenging due to rising raw material prices, higher labor and logistics costs, the effects of the prolonged depreciation of the yen, and concerns about an economic slowdown resulting from soaring prices.」

「Japan's domestic foodservice market, where our Group operates, faces limited prospects for significant market expansion due in part to population decline, population aging, and the declining birth rate, while competition is intensifying as businesses with a wide variety of formats enter the market. Competition with the food-to-go sector, led by convenience stores, is also intensifying.」

「In Japan's foodservice industry, where our Group operates, economic activity has gradually picked up as the legal classification of COVID-19 was changed, the movement of people recovered, and inbound tourism recovered following the lifting of entry restrictions. However, 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, economic activity has gradually picked up as the legal classification of COVID-19 was changed, the movement of people recovered, and inbound tourism recovered following the lifting of entry restrictions. However, 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.」

「The global economy during the consolidated fiscal year under review was moving toward normalization as the number of COVID-19 cases declined, restrictions on activities were lifted, and the movement of people recovered. Meanwhile, various sources of instability continued to coexist, including higher raw material and energy prices resulting from the situation in Russia and Ukraine since February 2022, rising global inflation, the rapid depreciation of the yen, higher labor costs due to the declining working-age population, and financial institution failures in the United States stemming from monetary policy that occurred in March 2023.」

「In addition, various sources of instability continue to coexist, including higher raw material and energy prices resulting from the situation in Russia and Ukraine, rising global inflation, the rapid depreciation of the yen, and higher labor costs due to the declining working-age population.」

「In addition, various sources of instability continue to coexist, including higher raw material and energy prices resulting from the situation in Russia and Ukraine, rising global inflation, higher labor costs due to the declining working-age population, and the growing risk of stagflation in some regions.」

「In Japan's foodservice industry, where our Group operates, higher raw material prices driven by growing global demand for meat, rising labor costs due to labor shortages, and higher logistics costs resulting from labor shortages in the transport industry are expected to continue. Accordingly, 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 upward due to growing global demand for meat, while the consumer price index has been trending downward. The company expects that strengthening earning power will become an increasingly important challenge.」

「The spread of the novel coronavirus infection, which became pronounced in the first half of February 2020, and requests from the national and local governments to refrain from going out and operating businesses led to a sharp decline in food-service demand. At the same time, food-service methods that do not involve face-to-face service, such as delivery services and the prepared-food industry, have attracted attention, and the outlook remains highly uncertain, including the potential impact on future consumer behavior.」

「In Japan, the operating environment had already become more difficult due to rising labor costs caused by population aging and decline, soaring logistics costs, changes in consumer trends resulting from the October 2019 consumption-tax increase and introduction of the reduced tax rate, and intensifying competition across industries and business formats as the boundary between food service and the prepared-food sector became less distinct. Against this backdrop, the spread of the novel coronavirus infection, which became pronounced in the first half of February 2020, and requests from the national and local governments to refrain from going out and operating businesses led to a sharp decline in food-service demand.」

「The spread of the novel coronavirus infection since February 2020 has had a devastating impact on consumer behavior and the economy. The current operating environment is extremely difficult, and the outlook is highly uncertain.」

「In Japan's food-service industry, in addition to rising labor costs and soaring logistics costs caused by population aging and decline, and the impact of rising raw-material costs due to overseas conditions, changes in consumer trends resulting from the October 2019 consumption-tax increase and introduction of the reduced tax rate, as well as intensifying competition across industries and business formats as the boundary between food service and the prepared-food sector becomes less distinct, remain ongoing management challenges.」

「In Japan's food-service industry, in addition to rising labor costs due to labor shortages, higher raw-material prices and soaring logistics costs, competition across industries and business formats has intensified as the boundary between food service and the prepared-food sector has become less distinct. These remain ongoing management challenges.」

「In Japan's food-service industry, competition has become even more intense, involving businesses ranging from convenience stores to the prepared-food sector. In addition to rising labor costs due to labor shortages, higher raw-material prices and soaring logistics costs, construction costs have also begun to rise ahead of the Olympics」

「In Japan's food-service industry, competition has intensified, involving businesses ranging from convenience stores to the prepared-food sector. In addition to rising labor costs due to labor shortages and the upward trend in raw-material prices, the impact of soaring logistics costs has also become pronounced. These remain ongoing management challenges. Overseas, meanwhile, the number of new competitors entering the market has increased」

「In Japan, competition has intensified, involving businesses ranging from convenience stores to the prepared-food sector」

「In Japan, competition has intensified, involving businesses ranging from convenience stores to the prepared-food sector」

「Competition has intensified, involving businesses ranging from convenience stores to the prepared-food sector」

「Competition has intensified, involving businesses ranging from convenience stores to the prepared-food sector」

「Competition has intensified, involving businesses ranging from convenience stores to the prepared-food sector」

「With little expectation of significant growth in the size of Japan's food-service market, partly because of the declining birth rate, competition has intensified as businesses from a wide range of formats enter the market. Competition with the prepared-food sector, led by convenience stores, has also intensified.」