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Japanese restaurant chains report solid profits


Japanese restaurant chains report solid profits

Major Japanese restaurant chains reported solid consolidated earnings for the first half or quarter ended June, helped by menu price increases that boosted spending per customer.

These chains managed to attract customers after the price increases by actively introducing new menus and limited-time products.

Skylark Holdings’ net profit rose 11-fold year-on-year to 6.2 billion yen in the first half. Spending per customer rose about 3 percent due to price increases at restaurants such as Gusto. The number of customers rose 9 percent thanks to the popularity of menus featuring popular cartoon characters.

McDonald’s Holdings reported record operating and net profits for the first half of the year. Net profit rose 31% to 14.8 billion yen. Royal Holding’s net profit doubled to 2.9 billion yen.

Zensho Holdings, operator of the Sukiya beef bowl chain, posted record sales and profit in the April-June period as it lured customers with limited-time products after raising prices on some menu items. Net profit rose 61.7% to 10.7 billion yen.

The net profit of Colowide, which operates a variety of restaurants, from sushi to Subscribe Barbecue fell 50.1% to 1 billion yen due to higher advertising costs.

Executives were cautious about their earnings prospects.

McDonald’s manager Shuko Yoshida said the company was “concerned about the impact of a weak yen and rising costs of ingredients such as beef and potatoes on consumer demand.”

Skylark President Minoru Kanaya said the company expects “accelerated cost increases due to higher minimum wages and rising rice prices.”

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