Intensifying Competition, Changing Consumer Needs, and Rising Raw Material Prices

「Meanwhile, uncertainty about the outlook continues due to persistently high raw material and energy prices associated with geopolitical risks, rising oil prices resulting from heightened tensions in the Middle East, uncertainty surrounding global trade policies, and price increases exceeding wage growth.」

「In the food service industry, the economy is beginning to recover due to expanding inbound spending and recovering consumer sentiment, but a challenging operating environment nevertheless continues as soaring raw material and energy prices and cost increases caused by labor shortages persist. In addition, rising prices and lifestyle changes are driving consumers to economize and diversifying their values.」

「However, uncertainty about the outlook persists due to the continued depreciation of the yen, geopolitical risks arising from the prolonged situations in Russia and Ukraine and in Israel and Palestine, soaring raw material and energy prices, and price increases exceeding wage growth. In the food service industry, the economy is on a recovery trend as inbound spending expands and consumer trends improve, but a challenging operating environment continues as soaring raw material and energy prices and cost increases caused by labor shortages persist. In addition, the rise in prices has encouraged consumers to economize, while lifestyle changes have led to the emergence of diverse values.」

「Although we are implementing measures to limit the impact of fluctuations in purchase prices on operating performance, soaring raw material and energy prices continue due to the yen's depreciation lasting longer than expected and geopolitical risks arising from factors including the situations in Ukraine and Israel and Palestine, and these factors may affect the performance of our Group.」

「In the food service industry, although inbound spending is expanding, the industry continues to face a challenging operating environment as soaring raw material, utility and logistics costs, as well as cost increases caused by labor shortages, persist. In addition, changes in lifestyles triggered by the COVID-19 pandemic have led to the emergence of diverse values.」

「Meanwhile, essential goods have been subject to successive price increases caused by higher raw material prices and energy costs resulting from the yen's depreciation and the prolonged situation in Ukraine, further strengthening consumers' preference for economizing to protect their household finances.」

「In the food service industry, although border control measures for entrants have been eased and inbound demand is showing signs of recovery, the number of customers using restaurants during nighttime hours has declined due to changes in lifestyles triggered by the COVID-19 pandemic. The industry is also facing soaring raw material prices and increases in utility, logistics and labor costs, resulting in a continued challenging operating environment.」

「However, society as a whole remains in an uncertain environment due to soaring raw material and energy prices, the prolonged situation in Ukraine, price increases caused by the yen's depreciation, and advancing inflation, particularly in Europe and the United States.」

「In the food service industry, although border control measures for entrants have been eased and inbound demand is showing signs of recovery, the number of customers using restaurants during nighttime hours has declined significantly due to changes in lifestyles triggered by the COVID-19 pandemic. The industry is also facing soaring raw material prices and increases in utility, logistics and labor costs, resulting in a continued challenging operating environment.」

「At the same time, monetary tightening centered in Europe and the United States has driven the yen lower, while prices, including those of fuel and raw materials, have continued to rise, and the outlook remains uncertain.」

「In the food service industry, activity was gradually returning to normal as priority preventive measures to prevent the spread of disease were lifted, but the business environment remained extremely challenging due to soaring raw-material, energy and distribution costs and the rapid depreciation of the yen.」

「The food service industry continues to face a challenging operating environment because requests to reduce operating hours under states of emergency and priority preventive measures continued for an extended period, people continued to refrain from eating out as the new lifestyle spread, and sales did not return to pre-pandemic levels. In addition, raw-material and distribution costs rose, labor shortages increased costs, and competition with the prepared-food sector and other businesses intensified further.」

「In the food service industry, customer traffic was expected to continue recovering as requests to reduce operating hours ended nationwide in October after the state of emergency was lifted and requests to refrain from dining in groups were gradually eased. However, the challenging operating environment continues because people have continued to refrain from eating out as the new lifestyle has spread, while soaring raw-material prices and higher costs due to labor shortages have also had an impact, and sales have not returned to pre-pandemic levels.」

「During the six-month period ended in the second quarter, the Japanese economy remained in a challenging situation as states of emergency and priority preventive measures to prevent the spread of disease were reissued in various areas due to the resurgence of COVID-19. Although expectations grew for a recovery as vaccinations progressed and the government announced policies aimed at normalizing social and economic activity by easing restrictions on movement, the outlook for the economy remained uncertain due to concerns about downside risks, including the course of the COVID-19 pandemic and supply constraints in supply chains.」

「The food service industry has been asked to temporarily close, shorten operating hours and restrict the serving of alcoholic beverages under states of emergency and priority preventive measures to prevent the spread of disease. In addition, application procedures for cooperation subsidies for closures and reduced hours and employment adjustment subsidies have been cumbersome, and payments have been significantly delayed. Customer traffic has continued to decline due to people refraining from going out, while the shift from eating out to eating at home has progressed, resulting in an extremely challenging operating environment.」

「In the food service industry, Western-style fast-food businesses continued to perform well, supported by demand for takeout and delivery, while yakiniku restaurants generally remained steady after their well-ventilated premises were favorably received and they benefited from the “Go To Eat” campaign. However, izakaya and family restaurant businesses were heavily affected by people refraining from going out and reduced operating hours due to the spread of COVID-19, and continued to struggle. In particular, when the third wave of COVID-19 became evident, local governments in various areas, beginning with Tokyo, requested further reductions in operating hours at restaurants serving alcoholic beverages, while year-end banquet demand disappeared, resulting in extremely challenging conditions, particularly for izakaya businesses.」

「The food service industry continued to suffer various adverse effects even after the state of emergency was lifted, including reduced operating hours, lower seating capacity to maintain social distancing, fewer group meals and banquets, voluntary restraint on returning to hometowns during the August Obon period, and shorter summer vacations for elementary, junior high and high schools. Although demand for takeout and delivery increased as people refrained from going out and telework expanded, many competitors entered these fields and competition with the prepared-food sector intensified further, leaving conditions challenging.」

「The food service industry was forced to close operating locations and shorten operating hours due to the spread of COVID-19. Even after the state of emergency was lifted, restaurants reduced seating capacity to maintain social distancing, and customer traffic declined as people continued to refrain from going out and avoid dining in groups. Although the industry worked to expand lunch menus and strengthen takeout services, competition with the prepared-food sector intensified further and challenging conditions continued.」

「The food service industry continued to face a challenging operating environment due to rising labor and distribution costs, soaring ingredient prices, increasingly diverse consumer needs, growing awareness of value for money and the consumption tax increase, and was forced to temporarily close restaurants and shorten operating hours after the spread of COVID-19 became apparent.」

「The food service industry continues to face a challenging operating environment due to rising labor and distribution costs, soaring ingredient prices, increasingly diverse consumer needs, growing awareness of value for money, and the consumption tax increase. In addition, competition with the prepared-food sector, including takeout bento meals, prepared dishes and delivery services subject to the reduced consumption tax rate, has intensified further, leaving the outlook uncertain.」

「The food service industry continues to face a challenging operating environment due to rising labor and distribution costs, soaring ingredient prices, increasingly diverse consumer needs and growing awareness of value for money. In addition, competition with the prepared-food sector, including takeout bento meals and prepared dishes and delivery services subject to the reduced consumption tax rate, has intensified further since the consumption tax increase, leaving the outlook uncertain.」

「The food service industry continues to face a challenging operating environment due to rising labor and distribution costs, soaring ingredient prices, increasingly diverse consumer needs and a persistent focus on saving money. In addition, intensifying competition with businesses in other industries, including convenience stores and food delivery services, has made the outlook uncertain.」

「The food service industry continues to face a challenging environment due to higher labor and distribution costs driven by labor shortages and the impact of soaring ingredient prices. In addition, increasingly diverse consumer needs, a persistent focus on saving money, a selective tendency to spend on items perceived as valuable, and intensifying competition with businesses in other industries, including convenience stores and food delivery services, have made the outlook uncertain.」

「In the food service industry, the challenging environment continued due to soaring labor and distribution costs and ingredient prices, increasingly diverse consumer needs, a growing tendency to distinguish clearly between discretionary spending depending on whether products and services are considered worthwhile, and intensifying competition with businesses in other industries such as convenience stores and food delivery services.」

「In the food service industry, the challenging operating environment continued due to increasingly diverse consumer needs, a tendency to select and economize, rising labor and distribution costs, soaring ingredient prices, and intensifying competition with businesses in other industries such as convenience stores and food delivery services. In addition, natural disasters such as torrential rains, typhoons and earthquakes reduced customer traffic by limiting opportunities to go out.」

「In the food service industry, the challenging operating environment continued due to increasingly diverse consumer needs, a tendency to select and economize, rising labor and distribution costs, soaring ingredient prices, intensifying competition with businesses in other industries such as convenience stores and food delivery services, and earlier returns home to watch the FIFA World Cup matches.」

「Ingredient prices continued to rise beyond expectations, and various costs increased as the Company prioritized improving store operating conditions for the future.」

「Soaring ingredient prices exceeded expectations, while various costs increased as the Company prioritized improving store operating conditions, resulting in factors that squeezed profits.」

「In the food service industry, the operating environment has become increasingly challenging due to soaring ingredient prices, intensifying competition to secure personnel, rising social concern about food safety and security, and the impact of consumers' focus on saving money.」

「In the food service industry, the operating environment has become increasingly challenging due to soaring ingredient prices, intensifying competition to secure personnel, rising social concern about food safety and security, and the impact of consumers' focus on saving money.」

「In the food service industry, the operating environment has become increasingly challenging due to soaring ingredient prices, intensifying competition to secure personnel, rising social concern about food safety and security, and the impact of consumers' focus on saving money.」

「In addition, sales stagnated as a result of intensifying competition caused by aggressive store openings by major competitors.」

「In the food service industry, consumers have become increasingly focused on saving money, while rising labor costs due to labor shortages have added to the increasingly challenging operating environment.」

「In the food service industry, consumers have become increasingly focused on saving money, while rising labor costs due to labor shortages have added to the increasingly challenging operating environment.」

「The Company's performance may be affected by intensifying competition with rival companies, changes in consumer needs, and increases in the prices of ingredients such as rice and fish.」