#Japan #Tokyo #Restaurant Industry #DX Strategy #EmberPoint

The V-Shaped Recovery of the Restaurant Industry

EmberPoint Co., Ltd., a Tokyo-based provider of semi-custom mobile application packages, has announced the release of its latest white paper titled "DX × App Strategy 2025" on May 26, 2025. This report addresses the latest digital transformation strategies to navigate the "bifurcation" in the restaurant sector while analyzing the structural issues behind the persistent problem of bankruptcies. As the restaurant industry witnesses a significant V-shaped recovery, with a market size reaching 24.15 trillion yen in 2023—a remarkable increase of 20.2% year-on-year—there is a simultaneous rise in bankruptcies reaching a record high of 727 cases. It is crucial to look deeper into the impact of rising labor and raw material costs that are squeezing the profits of restaurateurs, indicating that not all businesses are benefiting from the market's recovery. Small businesses, in particular, continue to struggle, with 85% of bankruptcies involving operators with debts of less than 100 million yen. This economic landscape suggests a troubling trend—one of deepening disparity in the industry, often referred to as "bifurcation."

Understanding the Divergence in the Market

The white paper argues that the stark contrast between thriving and floundering restaurants stems from a structural dependency on gourmet sites and delivery platforms among small and medium enterprises. These businesses often rely heavily on external services for customer acquisition, but they are also burdened with hefty fees, often around 30%, which severely limit their profit margins. Moreover, this reliance on third-party platforms prevents them from accumulating customer data that could aid in building a loyal customer base, creating a vicious cycle of dependency and decline.

Key to Survival: Embracing Proprietary Apps

The report posits that the key to overcoming this bifurcation lies in strategically implementing proprietary applications with unified solutions that enhance customer experience, automate operational tasks, and facilitate profitable omnichannel sales. With the utilization of mobile ordering soaring to an impressive 62.1%, the value of maintaining direct contact with customers has never been more crucial.

Market Recovery Overview

The report begins by analyzing the market data to dissect the reasons behind the increasing polarization between profitable and non-profitable establishments. It explores the structural challenges that contribute to this ongoing issue and points to effective strategies employed by successful restaurants.

Common Strategies of Resilient Restaurants

What shared strategies do surviving restaurants implement? The report elucidates the "offensive and defensive" digital transformation strategies that successful establishments adopt to create compelling customer experiences. These strategies prioritize not just survival but thriving in a competitive landscape.

Case Study: A Leading Coffee Chain's Success

The paper also highlights a success story from a prominent coffee chain that was struggling with limitations in customer visibility from traditional loyalty programs. Within just six months, this chain doubled its club membership. It capitalized on innovative features within its app, such as a gamified "roulette feature" and a competitive "ranking feature" that ignited customers’ enthusiasm without relying on discounts. Their recent campaign saw an impressive 20% profit margin increase in one day compared to the previous week, offering specific insights into how technology can directly boost revenue.

Conclusion

This comprehensive white paper provides insights into overcoming the current challenges in the restaurant industry, laying down strategies for future growth. As businesses navigate these tumultuous waters, the report serves as a roadmap for culinary entrepreneurs seeking to stay ahead of the curve. For further details and to download the full report, please visit EmberPoint's website at this link.

About EmberPoint

Since its inception in December 1999, EmberPoint has supported corporate communications for over two decades, starting from the early days of email marketing. With a focus on delivering exceptional email distribution services through its platform "Mail Publisher," EmberPoint has evolved to offer tools such as the marketing automation solution "Engage Cros" and other semi-custom mobile app packages like "App Publisher". The company continues to foster strong engagement between businesses and their customers. For more information, visit EmberPoint's corporate page.

Contact Information

For inquiries regarding this release, please contact:
EmberPoint Holdings, Inc.
Marketing Department
Phone: 03-6868-8980
Email: [email protected]

Company Details

Name: EmberPoint Co., Ltd.
Headquarters: 1-7-1 Yurakucho, Chiyoda-ku, Tokyo 100-0006
CEO: Masato Igarashi
Capital: 100 million yen
URL: EmberPoint

*Note: The name "EmberPoint" and its logo are registered trademarks of EmberPoint Co., Ltd. Unauthorized duplication or reproduction is prohibited.