Consumption tax cut: ``The more closely connected a restaurant is to daily life, the greater the impact'' - concerns raised by the head of a restaurant organization

The restaurant industry is growing anxious about the consumption tax cut for groceries that will begin next spring. This is because the tax rate difference between boxed lunches and delicatessen items is widening, making it inevitable that the number of customers will decline. We asked Mitsushi Mukumoto, chairman of the Japan Food Service Association, a restaurant industry group, about the impact and response.

--What kind of impact are you concerned about?

``The consumption tax rate will remain at 10% for in-store dining, but will drop from 8% to 1% for boxed lunches at convenience stores.We are extremely concerned that this 9% difference will reduce the number of customers visiting our stores.Eating out is used for a variety of purposes, such as restaurants used on special occasions, but it is also a part of consumers' ``infrastructure.'' I'm concerned that the impact will be greater on establishments that are more closely connected to people's daily lives.I'm concerned that establishments with weaker management bases, such as neighborhood diner restaurants or izakaya bars where you can grab a glass of beer after work, are more likely to be affected than major chains.''