TOKYO - Japanese family restaurant chain Saizeriya has announced its first major price increase since going public in 1998, raising menu prices by an average of 6% from October 29 as soaring ingredient and energy costs force the company to abandon its longstanding policy of keeping prices unchanged.
The price of its signature Milano-Style Doria, a popular baked rice dish, will rise by 20 yen from 300 yen to 320 yen. Other menu items will also become more expensive, with Hamburger Steak increasing from 400 yen to 430 yen and Diavola-Style Grilled Chicken rising from 500 yen to 530 yen.
The price revision marks a significant shift for Saizeriya, which has built its reputation on offering inexpensive Italian-style meals and has long resisted passing higher costs on to customers.
Saizeriya President Shuji Matsutani said the decision was made reluctantly after the company exhausted other options for maintaining its low prices.
"It is extremely regrettable, but we have concluded that we have no choice but to raise prices," Matsutani said.
The company has traditionally followed a strict policy of avoiding price increases, even as competitors adjusted their menus to reflect rising operating costs. To maintain affordability, Saizeriya previously introduced charges for grated cheese that customers had been able to use freely and reduced the number of items on its menu.
These measures were part of a broader effort to protect its reputation as one of Japan's most affordable restaurant chains, particularly among students, families and customers seeking inexpensive meals.
However, continued increases in raw material prices and energy expenses have made it increasingly difficult for the company to absorb rising costs without adjusting its prices.
Matsutani emphasized that Saizeriya remains committed to offering affordable food and would consider lowering prices again if conditions allow.
"We want to make things cheaper whenever we have the opportunity," he said. "But for now, we believe there is no other way. If this causes us to lose customers, we will simply have to accept that it reflects our own shortcomings."
The decision is particularly notable because Saizeriya has maintained a strong commitment to low prices since its stock market listing in 1998. While the chain has made limited price adjustments in the past, the latest revision represents its first broad-based increase in nearly three decades and its first price hike in six years.
Restaurant industry analyst Daisuke Miwa said the company appeared to have carefully considered which menu items required higher prices and which could remain unchanged.
"Saizeriya has made this decision only after thoroughly examining which products to raise prices on and which to leave untouched," Miwa said. "The company will continue pursuing its low-price strategy."
The announcement came alongside Saizeriya's latest financial results, which showed revenue rising 17% to 301.4 billion yen, while net profit declined 1% to 11 billion yen.
The figures highlight the challenge facing the restaurant operator as stronger sales have not translated into equivalent growth in profitability, with rising ingredient and operating expenses continuing to weigh on earnings.
For Saizeriya, the price increases represent an attempt to balance financial sustainability with the affordable dining model that has defined its business for decades. Despite the changes, the company intends to maintain its position as a low-cost restaurant chain, even as rising costs make that objective increasingly difficult to achieve.
Source: TBS
