Leading Japanese curry house, CoCo Ichibanya, recently stirred the pot with its decision to raise prices amid financial strains. The decision, labeled "controversial," will be a testing time for the beloved chain, indicating whether its popularity can withstand the price changes. The outcome of this strategic move, implemented in response to current economic conditions, is eagerly awaited.
Rise in prices of beloved restaurant chains often evokes strong reactions in Japan, as eating out is an ingrained part of their culture. Consumer loyalty is usually high, making such a decision risky for businesses. The "controversial" tag suggests that the move is against popular opinion and might potentially affect the brand's reputation.
Price hikes in popular restaurants are also controversial in the US or EU. The reactions tend to vary widely, largely dependent on how much value consumers feel they are receiving for the increased price. If the quality or quantity of the food is not perceived to maintain the same standard, the brand risks losing customer loyalty.