Japan Restaurant Management Council
Poster appealing for “understanding the price increase” at restaurants nationwide
Soaring prices of raw materials, etc., reaching the limits of restaurant management
The Japan Restaurant Business Management Council (Headquarters: Chiyoda-ku, Tokyo; Representative Director: Hideki Takahashi), which aims to build a healthy relationship between food and beverage companies nationwide and local governments, is facing the recent surge in raw material costs and labor costs. In response, we are pleased to announce that we have produced a poster to encourage consumers to understand the price increase at restaurants and distributed it to restaurants nationwide.
Poster asking consumers to understand, posted at restaurants nationwide SMEs and individual stores that are concerned about losing customers should raise prices
Food and beverage companies are now in a very difficult situation, such as soaring raw material costs, water utility costs, increased labor costs due to labor shortages, and 70% of the restaurant economy under Corona. Furthermore, from October this year, the prices of more than 6,500 new food and beverage items have been raised, and the minimum wage has also been raised, further deepening the seriousness of restaurant management.
Major chain restaurant companies have already announced price increases in response to high costs, but small and medium-sized and individual restaurants, which account for more than 80%*1 of the restaurant market, are concerned about losing customers. have yet to raise prices*². Even in normal times, the profit margin is around 5%, which is a low level.
In order for the food service industry to continue under such severe circumstances, it is inevitable that not only major chain companies but also small and medium-sized companies and individual stores will raise prices. We have created a poster to appeal to consumers to understand the price increases at restaurants. We are distributing it to restaurants nationwide and calling for store notices.
*1 …Source: Yamada Consulting Group “M&A Industry Trends Restaurant Industry” *2…Source: Teikoku Databank press release dated April 30, 2022 [Comment from CEO Hideki Takahashi for food and beverage companies] Courage to raise prices. Opportunity to break away from sales supremacy and review profits
The restaurant industry is a labor-intensive, low-margin business that requires a lot of manpower. In the case of small and medium-sized enterprises and individual stores, the profit margin is said to be around 5% even in normal times, and more than 60% of the cost is made up of raw material costs and labor costs. Is this revenue structure appropriate? Can you say that “30% of the total cost of raw materials” is an appropriate standard? Now is a good time to reconsider, given the unprecedented severe circumstances such as the global pandemic and soaring prices of raw materials. We should break away from the sales supremacy principle that determines the selling price from the cost price, and decide the selling price from the “value” that everyone is proud to provide, and secure an appropriate profit.
Under the coronavirus, the food and beverage industry has faced various problems, and issues that have been overlooked have become apparent. There is also a reflection that we have not worked as an industry on the economy and politics until now.
However, many people are fascinated by eating out, and the market size exceeds 18 trillion yen, and the restaurant industry workers account for 7% of the total working population. It has been 50 years since the restaurant industry began to be called. As a lubricant for people’s communication, restaurants have provided irreplaceable value that enriches our lives. The food service industry plays an important role in Japan’s world-class food culture. In order not to extinguish the light, I think the time has come for us to have the courage to raise our prices and ask our customers for their understanding.
About the Japan Restaurant Management Council
Until now, in the food and beverage industry, although there are organizations of major chains or small groups scattered in each region, there are no large-scale organizations on a nationwide scale, so there was no contact point for negotiations with the government. Therefore, this year, we will start making proposals to the
government, prefectural offices, city halls, etc. In the future, we will tie up with the government and develop a commercial agglomeration that takes into account the regional design and townscape, and draw a future map of “creating a city full of individuality.”
The Japan Restaurant Business Management Council gathers colleagues from all over the country who are seriously concerned about the future of the Japanese restaurant industry, and not only restaurant managers but also producers and related industries, a wide range of industries and regions that share this crisis. It is an organization that promotes efforts to protect restaurants and food cultures nationwide in cooperation with the government.
Organization name: Japan Restaurant Industry Management Council Location: 3rd East Building 301, Kanda Hirakawacho, Chiyoda-ku, Tokyo, inside the Lead Brain Group
Representative Director: Hideki Takahashi
Established: November 12, 2021 (Incorporation February 25, 2022) URL: https://lej.life/
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