Gyudon chains to be hit by tariff hike on U.S. beef

Jul 31, 2017 | News On Japan

Jul 31, 2017 (the-japan-news.com) - Restaurant chains serving gyudon beef-on-rice bowls are expected to be hit hard by a hike starting Tuesday in the country's tariffs on frozen beef from the United States and other countries.

They are examining likely impacts and studying countermeasures as the tariff increase to 50 percent from 38.5 percent, which was decided by the government on Friday as an emergency step to protect domestic beef farmers from surging imports, will lead to higher beef procurement costs, industry sources said.

Yoshinoya Holdings Co. and Matsuya Foods Co. depend on U.S. produce for most of the beef they use for their gyudon bowls.

Shifting to beef from other areas like Australia could be an option.

But Yoshinoya sounds reluctant. "Our gyudon tastes just right with U.S. beef," a Yoshinoya official said, adding, "Only U.S. beef can ensure stable supplies for all of our outlets."

An official of Zensho Holdings Co., the operator of the Sukiya gyudon restaurant chain, said that its profitability will be affected by the tariff hike.

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