Deteriorating Operating Environment Due to Food Service Competition, Labor Shortages, and Rising Raw Material Prices

「一方で、慢性的な人手不足による人件費の上昇や原材料価格・エネルギーコストの高止まりなどにより、業界を取り巻くコスト環境は依然として厳しく、慎重な経営判断が求められる状況が続いております。また、物価上昇を背景とした消費者の節約志向も継続しており、外食需要の動向については引き続き注視が必要です。」

「In addition to the economic conditions described above, the environment surrounding our Company is changing rapidly, including the contraction of domestic demand due to the declining number of domestic consumers, the maturation of Japan's food service market, behavioral changes such as an increased focus on saving and selective consumption against a backdrop of rising prices, the expansion and broadening of inbound demand, tighter regulations that take climate change and sustainability into account, and advances in the use of digital technologies, including the need to address food tech and AI. We believe this will require initiatives across a wide range of areas.」

「慢性的な人手不足による人件費の上昇や原材料価格の高止まりなどにより、業界を取り巻くコスト環境は依然として厳しく、慎重な経営判断が求められる状況が続いております。」

「Meanwhile, labor costs continue to surge due to the chronic labor shortage, while rising raw material prices continue to squeeze the earnings structure. Although price revisions are driving higher average spend per customer, careful judgment is required regarding full cost pass-through because of the risk of losing price-sensitive customers. In addition, declining consumer sentiment due to higher prices could affect the recovery in demand for dining out, while abnormal weather such as extreme heat has created differences in customer traffic depending on store location and format. We expect the need for flexible responses to continue as we carefully assess market trends.」

「Surging labor costs due to the chronic labor shortage are placing a burden on corporate management. In addition, rising raw material prices are squeezing the earnings structure, and the difficulty of passing these increases through to prices could lead to lower profit margins. There are also concerns that declining consumer sentiment due to higher prices could impede the recovery of the food service industry,」

「In the food service industry to which we belong, customer traffic recovered further and a moderate recovery trend continued, supported by the normalization of socioeconomic activity following the end of COVID-19 and the expansion of inbound demand resulting from the increase in foreign visitors to Japan. However, concerns that could impede this recovery trend remain, including surging labor costs due to labor shortages, further increases in raw material prices, and declining consumer sentiment due to higher prices, and the business environment remains severe.」

「In the food service industry to which we belong, the recovery in demand for dining out and inbound demand, supported in part by the reclassification of COVID-19 under the legal framework as a Category 5 disease, led to a further recovery in customer traffic. However, in addition to the chronic labor shortage, concerns have arisen over surging resource and commodity prices and rising labor costs, and the business environment remains severe.」

「In the food service industry to which we belong, the recovery in demand for dining out and inbound demand, supported in part by the reclassification of COVID-19 under the legal framework as a Category 5 disease, led to a further recovery in customer traffic. However, in addition to the chronic labor shortage, concerns have arisen over surging resource and commodity prices and rising labor costs, and the business environment remains severe.」

「In the food service industry to which we belong, the recovery in demand for dining out and inbound demand, supported in part by the reclassification of COVID-19 under the legal framework as a Category 5 disease, led to a further recovery in customer traffic. However, in addition to the chronic labor shortage, concerns have arisen over surging resource and commodity prices and rising labor costs, and the business environment remains severe.」

「In the food service industry to which we belong, customer traffic had begun to return and signs of recovery had emerged in business sentiment as regulations related to infection control were eased in stages. However, recurring waves of infections affected customer visits, slowing the pace of recovery. In addition to the need to respond flexibly to changes in consumer lifestyles, concerns have arisen over surging food ingredient and utility costs and rising labor costs, and the business environment remains severe.」

「In the food service industry to which we belong, customer traffic had begun to return and signs of recovery had emerged in business sentiment as restrictions on activities were eased. However, from July onward, the resurgence of infections caused by a new variant led to stagnation centered on personal consumption, slowing the recovery in business performance. In addition to the need to respond flexibly to changes in consumer lifestyles, concerns have arisen over surging resource and commodity prices and rising labor costs, and the business environment remains severe.」

「In the food service industry to which we belong, customer traffic had begun to return as restrictions on activities were eased following the full lifting of priority preventive measures in March 2022, and signs of recovery had emerged in business sentiment. However, concerns about a resurgence of infections have not been dispelled. In addition to the continuing tendency to refrain from large-group dining and parties and the need to respond flexibly to changes in consumer lifestyles, concerns have arisen over surging resource and commodity prices and rising labor costs, and the business environment remains severe.」

「In addition, numerous issues that could significantly affect corporate management have emerged, including surging crude oil and raw material prices stemming from geopolitical risks, a chronic shortage of personnel across the industry, and growing consumer concern about safety and security. The business environment therefore remains difficult for reasons beyond the impact of the infectious disease.」

「The food service industry in particular has been forced to restrict its activities, including by shortening business hours and suspending alcohol service, due to the repeated issuance and extension of states of emergency and priority preventive measures. As a result, it is operating in an unprecedentedly severe business environment.」

「The food-service industry in particular has been placed in an unprecedentedly severe operating environment due to restrictions such as shortened operating hours and the suspension of alcohol service accompanying repeated declarations of states of emergency and the issuance and extension of priority preventive measures.」

「In light of the spread of the COVID-19 pandemic and the declaration of a state of emergency, the company prioritised protecting the health and safety of customers, business partners and employees as part of its social responsibility. It temporarily closed or suspended operations at most of its stores for approximately 2 months, from early April through the end of May 2020, resulting in a significant decline in sales in April and May. Following the lifting of the state of emergency, all stores that had been closed resumed operations on 1 June, but the recovery in customer traffic has taken time amid continued concern about a resurgence of infections, and operating conditions remain challenging.」

「The impact of the COVID-19 pandemic on the food-service industry was unprecedentedly severe. Customer traffic declined substantially due to requests to suspend operations and refrain from going out to prevent the spread of infection, requests from local governments to shorten operating hours, and the growing trend of avoiding large gatherings involving food and drink, such as dinners and banquets, causing a serious impact across the industry.」

「The food-service industry in which the company operates was also placed in an extremely challenging environment as the spread of the COVID-19 pandemic, Japan's state of emergency and requests from local governments to refrain from going out caused a substantial decline in customer traffic.」

「During the fiscal year, Japan's economy had been recovering moderately amid continued improvements in employment and income conditions and the effects of various government policies, but was substantially pushed down by the impact of the COVID-19 pandemic that emerged toward the end of the fiscal year, resulting in extremely challenging conditions.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies across industries and business formats has intensified. The industry also faces issues such as higher labour-related costs resulting from labour shortages and rising raw material costs, and operating conditions remain challenging.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies across industries and business formats has intensified. The industry also faces issues such as higher labour-related costs resulting from labour shortages and soaring raw material and logistics costs, and operating conditions remain challenging.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies across industries and business formats has intensified. The industry also faces issues such as growing consumer awareness of food safety, higher labour costs resulting from labour shortages and soaring raw material and logistics costs, and operating conditions remain challenging.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies across industries and business formats has intensified. The industry also faces issues such as growing consumer awareness of food safety, higher labour costs resulting from labour shortages and soaring raw material prices, and operating conditions remain challenging. Although personal consumption, which affects the company's performance, has shown signs of recovery as employment and income conditions improve, unstable domestic and overseas economic conditions and concern about rising prices continue to weigh on consumers, and consumer sentiment has not yet improved substantially. The environment surrounding the company therefore remains uncertain.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies across industries and business formats has intensified. The industry also faces issues such as growing consumer awareness of food safety, higher labour costs resulting from labour shortages and soaring raw material prices, and operating conditions remain challenging.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies across industries and business formats has intensified. The industry also faces issues such as growing consumer awareness of food safety, higher labour costs resulting from labour shortages and soaring raw material prices, and operating conditions remain challenging. Although personal consumption, which affects the company's performance, has shown signs of recovery as employment and income conditions improve, unstable domestic and overseas economic conditions and concern about rising prices continue to weigh on consumers, and consumer sentiment has not yet improved substantially. The environment surrounding the company therefore remains uncertain.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies, including those in industries other than food service, has intensified. Problems such as higher recruitment and labour costs resulting from labour shortages and soaring raw material prices have also caused operating conditions to remain challenging.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies, including those in industries other than food service, has intensified. Problems such as higher recruitment and labour costs resulting from labour shortages and soaring raw material prices have also become more severe, and operating conditions remain challenging. In addition, although the employment environment is improving, uncertainty in domestic and overseas economic conditions and concern about rising prices continue to weigh on personal consumption, and consumer sentiment has not yet improved substantially. The environment surrounding the company therefore remains uncertain.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies, including those in industries other than food service, has intensified. Problems such as higher recruitment and labour costs resulting from labour shortages and soaring raw material prices have also become more severe, and operating conditions remain challenging. In addition, although the employment environment is improving, uncertainty in domestic and overseas economic conditions and concern about rising prices continue to weigh on personal consumption, and consumer sentiment has not yet improved substantially. The environment surrounding the company therefore remains uncertain.」

「In the food-service industry to which the company belongs, customer preferences have diversified and competition among companies, including those in industries other than food service, has intensified. Problems such as higher recruitment and labour costs resulting from labour shortages and soaring raw material prices have also caused operating conditions to remain challenging.」

「The environment surrounding the food-service industry is extremely challenging, as competition among companies to attract customers is expected to intensify further due to Japan's declining population, falling birth rate and ageing population, changing lifestyles and diversifying values. In addition, the industry must address issues such as growing concern about food safety, chronic labour shortages and soaring labour and raw material costs.」

「In the food-service industry to which the company belongs, competition among companies, including those in industries other than food service, has intensified as demand for prepared meals has grown. Problems such as higher recruitment and labour costs resulting from labour shortages and soaring raw material prices have also become more severe, and operating conditions remain challenging.」

「In the food-service industry to which the company belongs, competition among companies, including those in industries other than food service, has intensified as demand for prepared meals has grown. Problems such as higher recruitment and labour costs resulting from labour shortages and soaring raw material prices have also become more severe, and operating conditions remain challenging.」

「In the food-service industry to which the company belongs, competition among companies, including those in industries other than food service, has intensified as demand for prepared meals has grown. Problems such as higher recruitment and labour costs resulting from labour shortages and soaring raw material prices have also become more severe, and operating conditions remain challenging.」

「As demand for prepared meals continues to grow, competition among companies, including those in industries other than food service, has intensified. Problems such as higher recruitment and labour costs resulting from labour shortages and soaring raw material prices have also become more severe, and operating conditions remain challenging.」