Yoshinoya to raise the price to 426 yen, which is the same as beef bowl ... The reason why domestic fast food restaurants are cliffs

Solving business issues by integrating IT and management

What is Business + IT?

Login

E-mail newsletter registration

What is Business + IT?

Sales Strategy

Cost reduction

Organizational reform

Production / manufacturing

crisis management

compliance

Energy saving and environmental friendliness

By industry / scale

Core system

Information system

Operation management

Security

network

mobile

hardware

development

Related genres

Yoshinoya to raise the price to 426 yen, which is the same as beef bowl ... The reason why domestic fast food restaurants are cliffs

The Yoshinoya beef bowl chain has finally decided to raise the price of "gyudon". In addition to soaring beef prices due to global inflation, the yen has been hit by a double punch. Soaring food prices are likely to continue, forcing fast food companies to make drastic strategic shifts.

Economic commentator Keiichi Kaya

Economic commentator Keiichi Kaya

Keiichi Kaya Economic commentator Born in Sendai City, Miyagi Prefecture in 1969. After graduating from the Department of Nuclear Engineering, Faculty of Engineering, Tohoku University, he joined Nikkei BP as a reporter. He changed to an investment fund management company of Nomura Securities Group and is in charge of corporate evaluation and investment business. After he became independent, he engaged in consulting work for central ministries and government-affiliated financial institutions. Currently, he is writing in various fields such as economy, finance, business, and IT. His books include "Poor Country Japan" (Gentosha Shinsho), "The Road to Millionaires is in Economics" (Cross Media Publishing), "Feeling Economics" (SB Creative), and "Post-New Industrial Revolution". (CCC Media House), "Study of the New Wealthy Class-A New Mechanism to Change the Japanese Economy" (Shodensha New Book), "The Essentials of War and Economy I Want to Learn as a Culture" (Comprehensive Law Publishing).

1. The price of the raw material short plate of beef bowl is eel climbing
2. It's only a matter of time before you can't eat with one coin
3. The reason why Japanese life becomes more difficult
4. You can't buy good quality products without paying

The price of the raw material short plate of beef bowl is eel climbing

On October 29, 2021, the Yoshinoya announced a price increase for its main product, "Gyudon." The average price, which was 387 yen including tax, increased by 39 yen to 426 yen. Needless to say, the reason for the price increase is the rapid rise in global food prices these days. The Yoshinoya beef bowl uses a part called a short plate made in the United States, but the price of the short plate has skyrocketed, and the wholesale price has already exceeded 1,000 yen per kilogram. In the United States, short plates were not used for food, they were just discarded, so Japanese beef bowl chains could be bought at a low price. However, China, which has rapidly become rich, has begun to import a large amount of fatty short plates for hot pots, and in recent years it has become competing with Japanese beef bowl chains for purchase. In addition, beef prices have skyrocketed due to economic conflicts between the United States and China, and inflation has recently risen due to expectations of recovery from the corona crisis, and short plate prices have jumped further. As of 2017, the wholesale price of short plates was in the 600 yen range, so it is calculated that the price has increased more than 1.5 times in a few years. Despite the rise in raw material prices so far, the fact that the price was raised by 39 yen this time can be said to be the result of the company's cost reduction efforts. However, the current rise in food prices is not a temporary phenomenon and is likely to continue in the future. This price increase will not solve the problem. Japan has been growing at almost zero for the past 30 years, so it may not be very clear, but during that time, foreign countries have expanded their economies by 1.5 to 2 times, and prices have risen accordingly. In particular, the growth of emerging countries such as Asia and Africa is remarkable, and people's lives are rapidly enriching. Past experience has shown that as living standards in emerging countries rise, consumption of beef and other foodstuffs will increase exponentially. In recent years, China's explosive buying has surprised the world, but if emerging countries are bundled together, the economy will be as large as China. In other words, in addition to China, it is almost certain that emerging countries in Asia and Africa will buy one after another, and food competition has begun all over the world. It is for this reason that the rise in beef prices is not short-term and is likely not to fall in the long run.

It's only a matter of time before you can't eat with one coin

Not surprisingly, the sequence of movements extends to all ingredients. At the Yoshinoya, many people order eggs as a set with beef bowl, but so far, even if you add eggs, the price is within the range of 500 yen. The morning beef set (until 11:00 am) with miso soup on the egg is 458 yen and 500 yen or less if it is served normally. But soaring global food prices are likely to eventually reach chicken eggs. Chicken feed has already risen considerably, and poultry farmers are struggling to increase costs. In addition, in recent years, there has been an active movement to revise conventional production methods such as confining chickens in narrow cages and mass-disposal of male chicks that do not lay eggs. Some poultry farms use heating, but energy prices are soaring, so rising crude oil prices are also accelerating cost increases. If the price of chicken eggs rises further, it is undeniable that the conventional price system of one coin will not be maintained. The series of movements is not limited to beef bowl chains, but is a common issue for all fast food restaurants. Raw material prices have continued to rise, albeit at a slow pace, and companies have managed to survive with cost-cutting efforts. In Japan, wages have not risen, so if you raise the product price, you will face the problem of a decrease in sales volume. However, it can be said that the method of keeping prices unchanged by corporate efforts has already reached its limit. In the future, it is likely that the depreciation of the yen will hurt the cost.Related article

▲ Close ▼ Show all

In the past, the exchange rate was around 110 yen to the dollar, and there was no big movement, and only overseas prices rose. Even if the exchange rate does not change, if overseas prices rise, the prices of imported goods will rise, so the same impact as the depreciation of the yen will have on Japan. Looking at the real effective exchange rate, which is an exchange rate that takes into account price movements, the Japanese yen is already at the same level as in the 1970s, and the actual purchasing power of Japanese people today is about the same as in the era of 1 dollar = 200 yen. Has dropped to. Moreover, the trouble is that it is highly possible that the exchange rate, which had hardly moved so far, has begun to move toward a further depreciation of the yen. [Next page] Why Japanese people's lives become more difficult

Recommended articles

Competitiveness enhancement genre seminar

To List

Competitiveness enhancement genre topics

To List

IT introduction support information for competitiveness enhancement genres

To List

PR

SB Creative Co., Ltd.

Business + IT is operated by SB Creative Corp. of SoftBank Group.

By registering as a business + IT member, you can subscribe to member-only content and e-mail newsletters, and invite you to special seminars!