'Eating out' ranks 22nd as August restaurant sales exceed prior year for 57th consecutive month <Spotlight Theme>

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In the "Popular Theme Ranking" compiled by Minkabu and Kabutan, "Eating out" has ranked 22nd.

According to data released on the 25th by the Japan Foodservice Association (Minato-ku, Tokyo), total restaurant sales for August across all outlets of member companies rose 4.9% year-on-year, marking the 57th consecutive month of year-on-year growth. Rainy weather ? driven by typhoons and localized heavy rainfall, particularly in the latter half of the month ? weighed on customer traffic, but this was offset by strong demand for seasonal items such as cold-menu offerings, homecoming and tourism demand from family diners during the Obon holiday period, and higher average spending per customer. Promotional campaigns by restaurant operators to attract customers also contributed to the positive result. Despite growing consumer frugality amid rising prices, the resilience of dining-out demand has been widely noted and well-received by market observers.

On the other hand, concerns are mounting over the impact of successive natural disasters entering September, as well as potential negative effects from a planned reduction in the consumption tax rate on food products. Regarding the latter, the consumption tax rate on food products is set to be temporarily reduced to 1% for two years starting in April of year 27, bringing the rate on supermarket food purchases down from 8% to 1%, while the rate on restaurant dining remains unchanged at 10%. Previously, the tax gap between home cooking or takeout (taxed at 8%) and dining out was 2 percentage points; this gap will widen to 9 percentage points, raising fears of a significant shift away from restaurant dining toward home cooking. The government has included in the draft outline of its upcoming tax reform package a set of support measures for restaurant operators ? such as cash-flow assistance and support for introducing takeout services ? but demand-stimulation measures were not explicitly mentioned, limiting the package's effectiveness in alleviating concerns. That said, possibilities such as the introduction of premium meal vouchers remain on the table, and developments related to the consumption tax reduction warrant close attention.

On this day, with the broader market trending soft, related stocks showed little notable movement overall. However, ZENSHO HOLDINGS CO.,LTD. <7550>, which reported solid monthly sales for September, traded higher, while Maruchiyo Yamaokaya Corporation <3399>, operator of the "Ramen Yamaokaya" chain, and SRS HOLDINGS CO.,LTD. <8163>, operator of the "Washoku Sato" chain, also held firm.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.