The cost of ingredients and labor at domestic general restaurants will exceed 70% for the first time in 2024, worsening the profitability of the restaurant industry. Over the past nine years, ingredient costs have increased by about 1.8 times and labor costs by 2.7 times, while sales have only increased by about 1.7 times, causing the operating profit margin to plummet from 25.4% in 2015 to 8.7% in 2024. If the proportion of ingredient and labor costs exceeds 65%, normal management becomes difficult, and if it exceeds 70%, there is almost no real profit, putting many self-employed people in a deficit situation. The causes are rising food prices due to war and climate crisis, and minimum wage increases, as well as declining sales due to excessive competition.
