Consumer Frugality and Selective Consumption, Cross-Industry Competition, and Food Safety Requirements

「While the food-service industry continues to face a challenging operating environment due to soaring raw-material and labor costs, consumers’ spending attitudes appear increasingly divided between those willing to spend and those seeking to save.」

「Although wage income is improving, it has not kept pace with price trends, leaving real wages negative, and a pronounced preference for differentiated consumption has emerged, with consumers economizing on some purchases while spending more freely on others.」

「In addition, consumers’ preference for selective spending and frugality has strengthened further.」

「In the food-service industry, cost pressures and labor shortages remain unresolved, while selective spending is spreading beyond everyday consumption to special-occasion spending. As a result, the importance of initiatives to improve customer satisfaction while keeping costs under control is increasing further.」

「In addition to the further decline in late-night customers, lifestyle changes following the COVID-19 pandemic have become entrenched, while sluggish real wages have increased consumers’ preference for frugality and selective spending when dining out.」

「However, as the number of customers declines from after the dinner peak through late-night hours, businesses are required to adapt to the new consumer environment resulting from lifestyle changes following the COVID-19 pandemic.」

「The food-service industry is showing a gradual recovery as consumer sentiment has improved with the normalization of economic activity, and inbound demand is also expected to remain firm.」

「Changes in lifestyles triggered by the COVID-19 pandemic have led to a declining trend in the number of customers even before late-night hours begin.」

「Changes in lifestyles triggered by the COVID-19 pandemic have substantially reduced demand for large banquets and the number of customers using restaurants during late-night hours. In addition to consumers’ growing preference for frugality and selective spending,」

「Changes in lifestyles triggered by the COVID-19 pandemic have substantially reduced demand for large banquets and the number of customers using restaurants during late-night hours.」

「The consumer environment is becoming increasingly challenging as consumers have become even more inclined to economize and spend selectively.」

「Changes in lifestyles and rising product prices have further strengthened consumers’ tendency to be selective and economize.」

「Although the company is focusing on takeout and delivery and developing virtual restaurants as part of its response, competition with the prepared-food sector has intensified more than ever, and the challenging operating environment continues.」

「Although demand for takeout and delivery has increased, competition with the prepared-food sector has intensified more than ever, and an extremely challenging operating environment continues except in some fast-food formats.」

「Although local governments provided subsidies for cooperation with measures such as reduced operating hours, sales remained substantially below pre-pandemic levels, and demand continued to shift from eating out to eating at home, resulting in an extremely challenging operating environment.」

「Customer traffic continues to decline as people refrain from going out, while demand is shifting from eating out to eating at home, resulting in an extremely challenging operating environment.」

「The second and third waves of COVID-19 led consumers to refrain from going out, continue telework (working from home), avoid group dining, and eliminate demand for year-end parties, New Year parties and farewell and welcome parties. As a result, customer numbers and revenue at urban izakaya restaurants, as well as at yakiniku and premium sushi restaurants that had remained relatively firm, fell substantially below the year-earlier or two-years-earlier period during what would normally have been the busy season.」

「Concern about COVID-19, which had temporarily receded, resurfaced in late November. Together with a review of the “Go To Campaign,” further requests for restaurants to reduce operating hours, and increased consumer frugality due to the deteriorating employment environment, this caused activity to slow sharply toward year-end.」

「Although demand for takeout and delivery has increased as people refrain from going out and telework (working from home) has expanded, many industry peers have entered the market and competition with the prepared-food sector has intensified further, leaving the conditions challenging.」

「Although the company is working to expand lunch menus and strengthen takeout offerings, competition with the prepared-food sector has intensified further, and the challenging conditions continue.」

「The spread of COVID-19 has forced temporary closures and shorter operating hours. Although initiatives such as expanding takeout-only menus and lunch offerings have spread as measures to mitigate these conditions, competition with the prepared-food sector has intensified further, leaving the outlook unpredictable.」

「Competition with the prepared-food sector, including takeout bento, prepared dishes and delivery services subject to the reduced tax rate, has intensified further, leaving the outlook unpredictable.」

「Competition with the prepared-food sector, including takeout bento and prepared dishes and delivery services subject to the reduced consumption tax rate, has intensified further even after the consumption tax increase, leaving the outlook unpredictable.」

「Intensifying competition with other industries, including convenience stores and food delivery services, has also left the industry in an unpredictable environment.」

「In addition to increasingly diverse consumer needs, a deep-rooted preference for saving, and a preference for selective consumption in which consumers do not hesitate to spend on valuable items, competition with other industries, including convenience stores and food delivery services, is intensifying, leaving the industry in an unpredictable environment.」

「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.」

「Performance is becoming increasingly polarized even within the same industry, depending on whether companies can provide products and services suited to the needs of consumers who seek a richer lifestyle and do not hesitate to spend on value, while also trying to save, at prices they consider reasonable.」

「In the foodservice industry, competition with other industries, represented by convenience stores, is intensifying alongside rising labor and logistics costs and higher prices for food ingredients such as rice, meat, fish and vegetables. In addition, consumers are becoming increasingly selective about products and services. Performance is becoming increasingly polarized even within the same industry, depending on whether companies can provide products and services that offer value suited to consumer needs at prices consumers consider reasonable.」

「Although the economy is on a recovery trend, consumer selectivity continues because real wage growth is sluggish. At the same time, even high-priced products that meet consumer needs and provide value commensurate with their price are increasingly gaining customer support.」

「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.」

「Consumer frugality and selective consumption have intensified, hiring has become more difficult and labor costs have risen, and adverse weather such as torrential rain and repeated typhoons has had an impact. In addition, intensified competition with other industries, represented by convenience stores, and greater demands for food safety and security have left the industry in an unpredictable environment.」

「As deflationary sentiment has returned among consumers, frugality and selective consumption have intensified, while rising labor costs due to labor shortages have also become a burden. In addition, demands for greater food safety and security and competition with other industries, represented by convenience stores, are intensifying, leaving the industry in an unpredictable environment.」

「Consumers are becoming increasingly frugal and selective, competition is intensifying not only among peers but also with other industries represented by convenience stores, and demands for greater food safety and security are also increasing, leaving the industry in an unpredictable environment.」