Consumers Cheer for Savings, But Restaurant Owners Sigh

A steakhouse in Tokyo is bustling with customers even during weekday lunch hours.

[Customer: The meat is tender and has a great texture.]

While this restaurant has primarily focused on dine-in services, the news that the Japanese government plans to cut consumption tax on food items as a measure against high inflation has left the owner with concerns.

This is because the government proposal applies the tax cut only to takeout orders.

Currently, the consumption tax is 10 percent for dining in and 8 percent for takeout. If the government proposal is finalized, the consumption tax rate for takeout will be lowered from 8 percent to 1 percent for two years, starting in April next year.

For example, if a 100-gram steak priced at 1,680 yen is ordered for takeout, the price drops to 1,543 yen, allowing the consumer to save 137 yen, or approximately 1,300 won in Korean currency.

While consumers can save on food expenses, restaurant owners are worried.

[Steakhouse Owner: Customers who dine in tend to order more high-profit menu items. There is also the issue that we cannot provide beer with takeout orders.]

Some companies are moving quickly in anticipation of increased demand for takeout.

A family restaurant chain is establishing separate takeout-only locations while also planning to introduce takeout-exclusive menus at existing stores.

Additionally, a bakery restaurant is considering offering boxed takeout options, which it has not provided until now.

[Customer: Since there will likely be a price difference, I think I will be using takeout more often in the future.]

As the move to cut consumption tax aims to alleviate the pain of high inflation, a wave of change is blowing through Japan's dining industry.

Reported by Mun Junmo | Video by Moon Hyun-jin | Video Editing by Kim Jong-mi | Graphics by Shim Soo-hyun

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