Fast Food in Japan

PROSPECTS

Labour shortages pose threat to growth

Population ageing is having a heavy impact on the Japanese workforce, with reports in 2017 indicating that the country is suffering its worst labour shortages in 40 years. A Finance Ministry survey released at the start of the forecast period indicates that around 70% of Japanese companies are being impacted by labour shortages, with many seeking to attract players by offering generous full-time contracts.

Players focus on quality and provenance as they move on from food scandals

Fast food was impacted by a number of food safety scandals earlier in the review period, with the most prominent centred around McDonald’s. Over 2014-2015, scandals involving the brand included a human tooth found in French fries, plastic shards served in a drink and the use of expired Chinese meat.

Novelty appeals as Latin American fast food takes off

Latin American fast food was by far the most dynamic area in fast food at the end of the review period, seeing an impressive 58% current value sales growth in 2017 over the previous year. This was from a very low sales base but dynamic growth indicates that Japanese consumers continue to be attracted by genuine novelty.

COMPETITIVE LANDSCAPE

7-Eleven proves a proactive and aggressive leader

7-Eleven is the clear leader in fast food and continues to gain share, gaining almost half a percentage point in value in 2017 over the previous year to account for almost 26% share. This convenience store player continues to rapidly expand its store network, opening over 800 new outlets in 2017 to exceed 20,000 stores.

Lawson focuses on innovation and automation as it pushes for share

While leader 7-Eleven continues to gain share in overall fast food, third-ranked player Lawson achieved the strongest share gain in 2017 over the previous year with an increase of almost a percentage point to reach 11% of value. Lawson became a subsidiary of Mitsubishi Corp in February 2017, with this heralding a change in the company’s management and a shift in strategy.

Matsuya offers convenience via QR codes

Within chained Asian fast food, Matsuya launched an innovative ordering system in June 2017, with Matsu-Ken Select enabling customers to select their order prior to visiting the outlet. Orders are selected using a smartphone app, with the customer then supplied with a QR code that can be presented at the meal ticket machine.

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