The burden of labor shortages and rising labor and food costs

「Structural pressure from further increases in raw material and labor costs and from labor shortages is expected to persist in the foodservice industry, and the business environment is expected to remain less than optimistic.」

「The foodservice industry continues to be buffeted by prolonged inflation and cost increases caused by chronic labor shortages. Although wage income is improving, it has not kept pace with prices, leaving real wages negative and making consumers’ preference for “selective spending,” with a clear distinction between frugality and indulgence, increasingly pronounced.」

「The foodservice industry’s top line is recovering, driven by stronger inbound demand and price revisions at many restaurants. However, pressure from higher costs due to soaring agricultural and livestock product prices, including rice, vegetables and meat, and chronic labor shortages continues, while consumers are becoming even more selective and frugal.」

「The outlook remains less than optimistic for the foodservice industry, as pressure from rising costs and labor shortages has not eased.」

「The industry continues to struggle with chronic labor shortages, rising labor costs and persistently high raw material prices, and the operating environment remains challenging.」

「The foodservice industry is showing a gradual recovery as consumer sentiment improves with the normalization of economic activity, and inbound demand is also expected to remain firm. However, pressure from rising costs, including raw material, utility and labor costs, has not eased, while higher logistics costs and chronic labor shortages also persist, leaving the industry in a challenging operating environment.」

「In addition to rising raw material, logistics, labor and utility costs, the industry continues to face a challenging operating environment for revenue and profits due to the effects of chronic labor shortages.」

「The foodservice industry is required to respond to consumer needs such as changes in lifestyles following the pandemic and preferences for saving and selective consumption, as well as rising costs, particularly raw material and logistics costs. Accordingly, we expect the operating environment to remain challenging.」

「The industry continues to struggle with soaring food procurement prices and rising utility, logistics and labor costs, and the challenging operating environment remains unchanged.」

「The consumption environment has become increasingly challenging as consumers have become even more frugal and selective. Although customer traffic began to recover again from late September as infections declined, it has still not returned to pre-pandemic levels overall. The industry also continues to struggle with soaring food procurement prices, utility costs, logistics costs and labor costs, resulting in a challenging operating environment.」

「The economic outlook remains uncertain amid the effects of a sharply weakening yen and soaring global resource and raw material prices resulting from Russia’s military invasion of Ukraine. In addition to rising prices for daily necessities, Japan’s consumer price index (CPI) exceeded the year-earlier month by 2% for 3 consecutive months through June, making the environment surrounding personal consumption increasingly challenging.」

「The foodservice industry has continued to face soaring food ingredient and logistics costs and labor shortages, while the spread of COVID-19 also imposed restrictions including store closures, shorter operating hours and the suspension of alcohol service.」

「Although the foodservice industry had been gradually returning to normal operations following the lifting of the state of emergency and other priority preventive measures, it continues to face soaring food ingredient prices and labor shortages. Customer traffic has been slow to recover due to changes in consumer lifestyles, customers’ length of stay has also fallen sharply, and demand for dining by large groups has declined further.」

「However, if the Group is unable to secure the personnel it needs because of a deterioration in the hiring environment, if labor costs rise, or if the training of newly hired personnel does not progress smoothly, this could affect the Group’s store-opening plans, operating results and financial position.」

「Consumer frugality intensified as the employment environment deteriorated, and activity slowed sharply toward year-end.」

「As a result, the employment situation shifted from a serious labor shortage to an excess supply of labor.」

「The foodservice industry continues to face a challenging operating environment due to rising labor and logistics costs resulting from labor shortages, soaring food ingredient prices, increasingly diverse consumer needs, consumers’ growing focus on value for money, and the consumption tax increase.」

「The foodservice industry continues to face a challenging operating environment due to rising labor and logistics costs, soaring food ingredient prices, increasingly diverse consumer needs, and consumers’ growing focus on value for money.」

「The foodservice industry continues to face a challenging operating environment, with rising labor and logistics costs, soaring food ingredient prices, increasingly diverse consumer needs, and a deep-rooted preference for saving.」

「The outlook for the food service industry is being affected by higher labor and distribution costs resulting from labor shortages and soaring food ingredient prices, while」

「The food service industry continued to face an uncertain environment amid soaring labor, distribution and food ingredient costs, increasingly diverse consumer needs, a growing tendency to clearly distinguish spending based on whether products and services offer distinctive value, and intensifying competition from other industries typified by convenience stores and food delivery services.」

「The food service industry continued to operate in an uncertain environment due to higher labor and distribution costs, soaring food ingredient prices, increasingly diverse consumer needs, continued selectivity and frugality in spending, and competition from other industries such as convenience stores and food delivery services.」

「The food service industry was affected by adverse weather such as torrential rain, typhoons and snow damage, reduced outings as people watched the Winter Olympics at home, higher labor and distribution costs, and soaring prices for food ingredients such as rice, meat, fresh fish and vegetables.」

「The food service industry is facing rising labor and distribution costs, higher prices for food ingredients such as rice, meat, fresh fish and vegetables, intensifying competition from other industries and increasingly pronounced consumer selectivity regarding products and services.」

「Costs have risen due to higher prices for raw materials such as rice, meat and fresh fish, as well as higher distribution and labor costs, while competition from other industries, typified by convenience stores, has also intensified.」

「The food service industry continued to face an uncertain environment amid persistently cautious and selective consumer spending, rising prices for raw materials such as rice for food service, vegetables, meat and fresh fish, higher distribution costs and labor costs, and intensifying competition from other industries, typified by convenience stores.」

「Although lower crude oil prices led to lower utility costs, including electricity charges, the food service industry continued to face an uncertain environment due to increasingly cautious and selective consumer spending, difficulties in recruiting personnel and rising labor costs, the effects of adverse weather such as torrential rain and repeated typhoon landfalls, intensifying competition from other industries, typified by convenience stores, and increasing demands for food safety and security.」

「Although the stronger yen reduced the prices of imported food ingredients, the company was subsequently affected by adverse weather, including repeated typhoon landfalls and torrential rain following a prolonged period of extreme heat, as well as soaring vegetable prices due to record-low sunshine and rising hourly wages for part-time workers.」

「Rising labor costs due to labor shortages are becoming a burden.」