Beyond the Boundaries of a Gyudon Chain: The Light and Shadow of the "Umatoma" Craze - An In-depth Analysis of Matsuya Foods' "Increased Revenue, Decreased Profit"

Table of Contents

1. Introduction: The Current Position of Matsuya Foods

2. Tracking the "Uma-Toma" Phenomenon by Numbers

3. The Reality of "Increased Revenue, Decreased Profit" as Shown by Financial Results

4. Visualizing Cost Structure: FL Ratio and Waste Loss

5. The Pros and Cons of the Premiumization and Diversification Strategy

6. Comparison with Overseas Fast Casual

7. Consumer Voices: Inbound and Resident Foreigners' Evaluations

8. Profit Margin Recovery Scenario: Five Prescriptions

9. Conclusion: Redefining Beef Bowl Chains and Future Prospects

10. List of Reference Articles

1. Introduction: The Current Position of Matsuya Foods

Founded in 1966 in Nerima, Tokyo, Matsuya has grown into a chain of over 1,200 stores in Japan, with beef bowls as its main product. However, by the mid-2020s, the company is steering away from its "single-focus beef bowl strategy" towards "premiumization and diversification." This shift is driven by ① fluctuations in raw material prices, ② continuous increases in minimum wages, ③ rapid recovery of inbound tourism, and ④ a growing consumer preference for "slightly better" products.

From around 2023, Matsuya has been introducing menu items such as hamburg steaks, beef stew, and spice curry priced between 800 and 1,200 yen, raising the average customer spend by about 18% compared to fiscal year 2022. However, profits continue to decline. What exactly is happening? ryutsuu.biz

2. Tracking the "Uma-Toma" Phenomenon by Numbers

2-1 Product Overview and Resale Schedule

The "Uma-Toma Hamburg Steak Set Meal" is a summer-only menu item featuring a 100% beef hamburger (150g) topped with fresh tomato sauce and roasted garlic, priced at 890 yen including tax (with rice and miso soup). First introduced in 2006, the 2025 version was re-released as an "evolved version" with the sauce concentration increased by 1.3 times and coarsely ground black pepper newly added. matsuyafoods.co.jp

2-2 Sales Performance

In the first week of sales (6/3–6/9), sales numbers were 140% above plan. Some stores nationwide ran out of hamburger stock, prompting the official website to post an "unprecedented notice" on 7/1 restricting sales hours to 3 PM–12 AM. This measure spread on social media, with the hashtag "#UmaToma" garnering over 230,000 posts in seven days. blog.livedoor.jpmatsuyafoods.co.jp

2-3 Promotion Strategy

・No TV commercials; focused on short videos on X (formerly Twitter), Instagram, and TikTok
・Simultaneously held a "Free Extra Garlic Campaign" to encourage UGC among younger audiences
・To simplify in-store operations, hamburgers were pre-cooked at a central kitchen and delivered chilled

This digital shift kept advertising costs below 1%, but ultimately led to underestimating demand and causing stock shortages.

3. The Reality of "Increased Revenue, Decreased Profit" as Shown by Financial Results

Looking at the consolidated financial results for the fiscal year ending March 2025, sales reached a record high of 154.2 billion yen (+20.9%). However, operating profit was 4.4 billion yen (▲17.2%), ordinary profit was 5.1 billion yen (▲13.9%), and profit attributable to owners of the parent was 2.1 billion yen (▲25.0%), indicating a significant decrease in profits. The operating profit margin was 2.9%, below the restaurant industry average (5–6%). Furthermore, the company's forecast for the fiscal year ending March 2026 shows an ordinary profit of 3.2 billion yen (▲37.9%), suggesting "two consecutive years of decreased profit." ryutsuu.bizkabutan.jp

These figures highlight the structural issue of "selling but not profiting."

4. Visualizing Cost Structure: FL Ratio and Waste Loss

4-1 Raw Material Costs (Food)

Due to rising prices of beef, eggs, and dairy products, the food cost ratio increased from 60.5% in fiscal 2024 to 62.1% in fiscal 2025. Hamburger menu items are particularly susceptible to fluctuations in ground beef prices, with a 1% variance in expected costs leading to an annual cost increase of approximately 320 million yen.

4-2 Labor Costs

・Minimum wage revisions (October 2024 +43 yen, October 2025 +37 yen)
・Intensified hourly wage competition among foreign students
・Cooking procedures increased 1.8 times compared to beef bowls, requiring an increase in peak kitchen staff from 2 to 3 people

As a result, the total FL cost reached 66.9%, significantly exceeding the industry benchmark of 60%. nikkan-spa.jp

4-3 Waste Loss and SG&A Expenses

The multi-variety operation complicates demand forecasting, worsening the waste loss rate from 3.5% last year to 5.2% this year. Additionally, the introduction of equipment and promotional materials for limited-time menus increased the SG&A expense ratio from 13.8% to 15.4%. Thus, sales growth exceeding cost compression is necessary, eroding profit margins.

5. The Pros and Cons of the Premiumization and Diversification Strategy

The menu has become so diverse that people say, "It's no longer just about beef bowls." Premium beef bowls for 690 yen, simmered beef stew set meals for 1,190 yen, and founder's beef curry gyudon for 1,150 yen—prices exceeding 1,000 yen are becoming the norm. While customer spending does increase, there are significant downsides such as ① limited kitchen space, ② staff training costs, and ③ dispersed procurement lots for materials.

Moreover, in regional stores where price tolerance is low, there is a limit to price pass-through, making it difficult to improve profits. nikkan-spa.jp

6. Comparison with Overseas Fast Casual

6-1 Chipotle Mexican Grill

U.S.-based Chipotle achieved sales of $11.3 billion and an operating profit margin of 17.6% for the full year 2024. The menu is limited to four categories: "Burritos/Bowls/Tacos/Salads," with diversity achieved through combinations. The restaurant-level operating profit margin is a high 24.8%. ir.chipotle.comcompaniesmarketcap.com

6-2 Pret A Manger

UK-based Pret surpassed £1 billion in global sales in 2023, with the franchise ratio reaching about one-third. By using low-temperature cooking facilities and central kitchens for sandwiches, they keep cost ratios low, with stores focusing on "assembly." Coffee subscriptions boost visit frequency and improve eat-in turnover rates. pret.co.ukjabholco.com

6-3 The Gap with Matsuya

The factors creating the gap with Matsuya's operating profit margin of 2.9% are:

• Lack of Menu Streamlining

• Delay in Process Automation

• Low Partial Franchise Ratio (80% Directly Managed in Japan)
  
  The "selection and concentration" practiced by overseas chains suggests the fact that **"diversity ≠ high profit."**

7. Consumer Voices: Inbound and Resident Foreigners' Evaluations

The main reason foreign visitors to Japan (13.95 million in the first half of 2025) use Matsuya is to "try Japanese-origin beef bowls." However, there is some confusion regarding premium menus, with comments like "prices are no different from chains in my home country" and "it feels less Japanese." On the other hand, the presence of vegetarian curry and halal beef bowls is rated higher than Yoshinoya and Sukiya.

QR code payments and multilingual ticket machines are also popular, but the inconsistent implementation across stores is a challenge.

8. Profit Margin Recovery Scenario: Five Prescriptions

1. Optimization of Menu MD Cycle

   • Reduce the number of limited-time menus from 36 to 24 annually, returning the waste rate to the 3% range
     
     

2. Kitchen DX and Increasing Self-Service Ratio

   • AI cooking robots and counter rail service to reduce peak staff by 20%
     
     

3. Building a Joint Procurement Platform

   • Considering a "Rice and Beef Joint Purchasing Consortium" with Yoshinoya HD and Zensho HD
     
     

4. Expansion of Overseas Franchises

   • Deploying a proven model in Singapore and Vietnam to 50 stores within ASEAN with reduced investment burden

5. Subscription-Based Set Meal Pass

   • For a monthly fee of 3,980 yen, one set meal per day up to 598 yen is free of charge, with an estimated 26% increase in visit frequency

9. Conclusion: Redefining Beef Bowl Chains and Future Prospects

The "Uma-Toma" whirlwind demonstrated Matsuya's brand power and product development capability, but also proved that "selling ≠ profiting