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The restaurant industry in Central Japan is proving resilient despite the rising costs of raw materials, including rice. Five major foodservice companies in the region have reported an increase in both revenue and profit for the fiscal year ending March 2025. This success comes despite challenges such as soaring ingredient prices, with companies implementing price hikes and optimizing procurement processes to manage costs and ensure profitability. Looking ahead to fiscal year 2026, all five companies expect continued growth.
Key Financial Results
The combined revenue for the five companies increased by 6% compared to the previous fiscal year, while operating profits surged by 16%. Despite high and persistent raw material costs, strategies such as price adjustments and supply chain efficiency have proven effective.
Price Adjustments Across the Board
Among the companies, four implemented price hikes. Sagami Holdings, a Japanese food chain, raised prices at its “WASHOKU Soba Sagami” locations in December 2024 due to rising costs of rice and other ingredients. The company also targeted special occasions, such as the sale of “issho mochi” birthday sets, which helped increase customer spending. Additionally, the company observed a 5% rise in average customer spending compared to the previous period.
Amiya Kitai, a popular yakiniku chain, shifted to purchasing whole cows instead of individual cuts, enabling the company to lower its procurement costs. Yoshix Holdings, known for its “Yatai Sushi” izakaya chain, increased its purchase of unprocessed rice, allowing the company to reduce processing costs.
Meanwhile, JB Eleven, known for its ramen and dumpling chains, closed unprofitable outlets, including its 50-year dumpling shops. On the other hand, Kisoji, a shabu-shabu restaurant chain, chose not to raise prices but focused on offering higher-margin menu items.
Outlook for Fiscal Year 2026
Looking ahead, all five companies forecast higher profits for the 2026 fiscal year. Although the global economic uncertainty due to US trade policies remains a concern, the overall impact on the Japanese restaurant industry is expected to be minimal. Amiya Kitai’s CEO, Takuyuki Miyazaki, emphasized that the company is closely monitoring how potential risks will unfold.
In terms of cost-cutting measures, these companies are increasingly turning to technology for operational improvements. Sagami Holdings introduced an AI-based self-payment system at its soba restaurants in April 2025, cutting costs and maintaining affordable menu options. Additionally, JB Eleven is looking to expand its overseas franchise operations, with plans for expansion into France, Indonesia, and other markets.
What Undercode Says:
The strategies adopted by these leading restaurant chains in Central Japan highlight how companies are adapting to economic pressures by focusing on operational efficiency, leveraging technology, and passing on some of the increased costs to customers. The rise in prices was not an easy decision for these businesses, but it has been a necessary response to protect profitability in an environment where raw material costs, such as rice, continue to climb. The shift towards cost-effective procurement methods, such as bulk buying meat or increasing the in-house cooking of rice, are key examples of innovation that can help mitigate external cost pressures.
The introduction of artificial intelligence and other technologies in restaurant operations, such as AI-based payment systems, is also a noteworthy trend. This shows that even in traditional industries like foodservice, there is room for technological improvements that can enhance both customer experience and business efficiency. With more companies focusing on international expansion, particularly in the lucrative overseas markets where Japanese food is gaining popularity, this growth could open up new opportunities for the industry to offset domestic economic challenges.
The broader takeaway is that while the restaurant industry faces significant cost challenges, strategic adjustments and technology adoption can help mitigate these issues and keep the business growing. The long-term success of these companies will likely depend on their ability to remain agile, continually adjust to market conditions, and leverage technological advancements to streamline operations.
Fact Checker Results:
All five companies showed growth in both revenue and profit, confirming that their strategies to offset rising costs through price hikes and operational adjustments worked.
The technology adoption trend is accurate, with
Despite global uncertainties, the companies are optimistic, with all projecting continued growth for the fiscal year 2026.
Prediction:
Given the increasing focus on international markets, these restaurant chains are likely to see further expansion into Asia and Europe, capitalizing on the global appetite for Japanese cuisine. The adoption of technology in restaurant operations will likely spread across the industry, with more chains embracing automation and AI to reduce costs and enhance customer experiences. Additionally, as raw material costs remain high, further price increases are probable in the coming years.
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Reported By: xtechnikkeicom_621d9f5a1cb7e0c773c77750
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