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Japan eating-out industry enjoying rapid business recovery

Customers seated while dining at the Vegan Izakaya Masaka restaurant in the Shibuya area of Tokyo. (AFP)
Customers seated while dining at the Vegan Izakaya Masaka restaurant in the Shibuya area of Tokyo. (AFP)
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10 Aug 2023 10:08:10 GMT9
10 Aug 2023 10:08:10 GMT9

Tokyo: Japan’s eating-out industry, including “izakaya” Japanese-style pubs and family restaurants, is enjoying a rapid business recovery after the government lowered the legal classification of COVID-19 in May, according to recent earnings reports from six major companies in the industry.

Zensho Holdings Co., which operates Sukiya “gyudon” beef-on-rice restaurants and other chains, said Thursday that its consolidated net profit in April-June hit a record high above 6.6 billion yen.

Colowide Co. also renewed its profit record for the quarter.

Watami Co. posted its first April-June operating profit since 2019, thanks to the revival of demand for drinking parties.

Skylark Holdings Co. recorded a net profit for January-June for the first time in two years, and Royal Holdings Co. also turned profitable for the first time in four years.

McDonald’s Holdings Company (Japan) Ltd. posted higher sales and profits for the first half of 2023.

Hopes are high for a recovery in demand from inbound tourists as China lifted its ban on group tours to countries including Japan on Thursday.

Zensho plans to introduce Chinese-language menus, and Skylark is developing menus for large groups.

Reflecting such expectations, Watami and others raised their full-year earnings forecasts.

In response to labor shortages, meanwhile, Skylark has launched a service enabling customers to make payments at their tables using quick response, or QR, codes.

Royal plans to promote efforts to make its workplaces more attractive to workers, such as increasing the number of days its Royal Host restaurants are closed.

JIJI Press

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