TDB
Steak restaurants go bankrupt at record high, struggling due to weak yen; prices of American products have increased 1.4 times in 5 years; high prices of salad vegetables are also having an impact
Bankruptcy trends of “steak restaurants”
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Teikoku Databank conducted a survey and analysis on the occurrence of bankruptcies among “steak restaurants.”
-Survey results (summary)-
Steak restaurants go bankrupt at record high, struggling due to weak yen; prices of American products have increased 1.4 times in 5 years; high prices of salad vegetables are also having an impact
Aggregation period: Until March 31, 2024 Aggregation target: Bankruptcy investigations through legal liquidation with debts of 10 million yen or more: Teikoku Databank Co., Ltd.
*Survey results will also be posted on the following website https://www.tdb.co.jp/report/index.html
Major steak chains also raise prices one after another – critical moment for “reasonable” steak restaurants
[Image 1: https://prtimes.jp/i/43465/859/resize/d43465-859-5000db1956dabd66e8ee-0.jpg&s3=43465-859-fd7e6e9444455aefabbc16f0794b294c-581×548.jpg] In fiscal 2023, 10 steak restaurant bankruptcies were discovered, five times the number from the previous year, and the highest number ever recorded, reaching double digits for the first time since fiscal 2010. The reason behind the increase in steak restaurant bankruptcies is a sharp deterioration in the business environment, with the price of imported beef soaring due to the effects of the weaker yen. According to trade statistics from the Ministry of Finance, the price of beef (loin) produced in the United States, such as sirloin, which is often used in steakhouses, will exceed 200 yen per 100 grams on average in 2023, increasing 1.4 times over five years, making it cheaper than beef produced in the United States. Australian production has also rapidly increased by 1.3 times in five years. In the United States, production costs have skyrocketed due to the skyrocketing prices of grain and hay for feed due to the conflict in Ukraine and abnormal weather conditions such as drought.
[Image 2: https://prtimes.jp/i/43465/859/resize/d43465-859-4a75268b91d5f65c93a2-0.jpg&s3=43465-859-7c1a04f00760c3308ff12984c680df62-600×546.jpg] In addition, for domestic distribution, import costs and
transportation costs have increased due to the yen’s depreciation of nearly 20 yen over the past year. Even in the salads offered in set menus, prices for fresh vegetables remain high, with carrots and other items at one point 90% more expensive than normal. However, steak prices are relatively high compared to other restaurant menu items, and many restaurants have difficulty raising prices due to concerns about losing customers. As a result, there are many cases where steak restaurants and small-scale stores that sell low prices are unable to withstand the rapid pace of increase in purchasing prices.
Steak chain restaurants are currently undergoing a series of price revisions due to increased costs of raw materials, and are also being forced to respond by switching to cheaper production countries and cuts such as Australian and shoulder roast, and changing the types of salad bars. Steak restaurants that have been offering reasonably priced steaks are facing challenges.
More details about this release:
https://prtimes.jp/main/html/rd/p/000000859.000043465.html