In a landmark shift for Japan's food service industry, which has historically been plagued by low wages, several companies are announcing significant pay raises as they seek to attract and retain workers amid a tightening labor market. Skylark Holdings (HD), recognized for operating popular family restaurants like Gusto and Bamiyan, has committed to raising salaries by an impressive 6.5% for its regular employees, translating to an average increase of 23,375 yen, or about $175, effective from April 2025.
This announcement comes as part of a broader trend among food service companies responding to a national call for higher wages set by UA Zensen, a labor union that represents many workers in the sector. The organization has established a pay rise benchmark of 6% as the standard for spring labor negotiations this year. Skylark's decision, however, exceeds this standard, marking a significant step forward in an industry often criticized for its low-income levels and long working hours.
Reflecting this momentum, Zensho HD, the operator of the well-known Sukiya chain, has pledged to implement an average salary increase of 11.24% for approximately 1,300 employees, with average raises amounting to 47,390 yen ($350). In a notable change, they are also increasing the starting salary for new graduates by 34,000 yen to a new entry-level figure of 312,000 yen ($2,350).
Similarly, Matsuya Foods HD, which runs the Matsuya restaurants, has announced an average increase of 7.41% for around 2,000 regular employees, while also raising new graduate starting salaries by 15,000 yen to 265,000 yen ($2,020). Mos Food Services, known for Mos Burger, is raising salaries for about 650 regular and contract workers by 5%, with new graduates seeing an increase of 7,500 yen to a starting salary of 247,500 yen ($1,855).
Japan McDonald's HD is not left out; they have declared a 4% raise for around 2,500 regular employees, alongside a starting salary hike of 10,000 yen to 270,000 yen ($2,050). The previous year also set the stage for these subsequent raises, as various companies like Toridoll HD, which operates Marugame Seimen, and Yoshinoya HD, have each implemented respective increases of 10% and 8.91% for their employees, showcasing a shift in the labor market.
Historically, the Japanese food service industry has faced scrutiny over its wage standards; the average yearly income for food service workers remained at 259.5 million yen, notably below the national average of 318.3 million yen. Coupled with reputation for long hours, this has deterred potential workers from pursuing jobs in this sector. However, with recent changes in the labor market dynamics, industry representatives expressed optimism regarding the future.
A representative from the food chain sector noted, "The data from the Ministry of Health, Labour and Welfare includes wages from small, individually-run establishments, skewing the perception of salaries in large chains. Attaining a managerial position in these environments can yield annual incomes between 5 to 6 million yen, progressively aligning with what is offered by other robust sectors in the economy."
Despite earlier claims regarding excessive work hours, industry insiders argue that the labor shortage and rising personnel costs are prompting companies to invest in technology and efficiency, thereby reducing labor demands and fostering a healthier work-life balance.
As one labor expert summarized, "The era where the food service industry was merely characterized by low wages and long working hours seems to be fading. The current concerns over workforce shortages compel companies to adapt, and as a result, an affirmative shift in working conditions is underway."
This movement indicates a reconceptualization of the food service sector in Japan, where a growing number of establishments are aligning more closely with industry standards observed in larger corporations. With enhanced salary structures and improving workplace conditions, these moves may revitalize interest in employment within the sector, setting a hopeful trajectory for future workforce engagements.
