2020 was a tough year for full-service restaurants with the outbreak of COVID-19 disrupting the ability of outlets to open and even when they did they often saw reduced operating hours and social distancing measures. Furthermore, even when they did open footfall was not as significant as pre-COVID-19 with many people following the government’s advice to remain home where possible.
Full-service restaurants largely rely on eat-in sales for the majority of their business, but with COVID-19 placing restrictions on their ability to open to capacity many turned their attention to takeaway and home delivery. As the major delivery platforms, such as Uber Eats and Demaekan, are limited in certain areas, some full-time restaurant players invested in their own delivery networks.
Yakiniku (a Japanese version of Korean barbecue) performed better than many other cuisines in the wake of COVID-19. This was partly because it is considered to be difficult to replicate the taste/atmosphere at home, with many consumers visiting these restaurants not just to eat but also as a source of entertainment.
The government’s Go To Eat campaign proved popular following its launch, although it has been beset with problems due to an increase in COVID-19 cases. Nonetheless, while the vouchers had been due to expire in March 2021, due to the disruption in using them many prefectures have now extended the expiry date until December 2021.
Rising labour and ingredients costs and unfavourable demographic trends present considerable challenges to full-service restaurants, which could limit the channel’s ability to return to pre-COVID-19 sales levels. Even before the pandemic, full-service restaurants faced a growing consumer trend towards eating at home, which was being bolstered by the growing range of nakashoku (packaged ready meals) options provided by outlets such as convenience stores.
Japan is in the process of rolling out its COVID-19 vaccination programme, although at the time of writing there are still no certainties as to how long it will be before life starts to return to relative normality. With different variants of COVID-19 causing concern, such as the Indian variant, many people are still exercising caution both in their movements outside the home and in their spending.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Full-Service Restaurants industry in Japan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Full-Service Restaurants industry in Japan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Full-Service Restaurants research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page