Japan, Weary of High Food Costs, Sees 'End-of-Day Discount Apps' Take Off

【Financial News, TOKYO—Correspondent Seo Hye-jin】"I reserve it right away when my favorite store posts products."
At UDAUDACAFE, a crepe shop in Hiratsuka City, Kanagawa Prefecture, a female customer picked up an assortment of crepes worth 1,600 yen at the regular price, or approximately 13,680 won, for 680 yen, or about 5,814 won. She had ordered it in advance through Too Good To Go (TGTG), a food-waste reduction app. The store sells food that might otherwise be discarded, while consumers enjoy snacks at less than half the regular price.
In Japan, where high prices have increased the burden of food expenses, apps that allow users to buy unsold food at discounted prices are gaining popularity. As practical savings are combined with the appeal of helping protect the environment, the number of users is rising rapidly.

According to the Nihon Keizai Shimbun, Too Good To Go, which originated in Denmark, secured approximately 600,000 users after entering Japan in January this year. The company said the growth had outpaced its initial projections. The number of participating stores has also risen to around 700, mainly in Tokyo. Lawson, Krispy Kreme Doughnuts Japan, and the renowned bakery Boul’ Ange are among those taking part.
Users select a store on the app, make a reservation and payment, and collect the products at a designated time. Prices are generally set at half or less of the regular price. Since users do not know what the package contains until they pick it up, receiving a 'surprise package' is part of the fun.
The growing burden of food expenses is driving the app's popularity. According to a household survey by Japan's Statistics Bureau, the Engel coefficient—the share of food expenses in consumer spending—reached 28.6% last year, its highest level since 1981. This came as companies passed higher costs on to retail prices, while imported raw materials and energy also became more expensive.
Ryoichi Yasui, an office worker in his 40s who lives in Tokyo, buys bread through Too Good To Go at a convenience store near his workplace about once every two weeks. He said, "I learned about the app while looking for a way to buy bread for my family at a lower price," adding, "I use it entirely because of the price."
In Japan, Too Good To Go has emphasized value for money over environmental protection. The Japanese version does not include the phrase "You are a hero," which appears after a purchase is completed in Europe. Instead, it displays the amount saved and the reduction in greenhouse gas emissions side by side. The aim is to let users naturally recognize the environmental benefits after shopping at a lower price.

For stores, the app offers an opportunity to turn products destined for disposal into revenue and attract new customers. Ayaka Udagawa, head of UDAUDACAFE, said, "New customers have started coming from far away. Whenever we list products, they always sell out."
Around 160 NewDays convenience stores affiliated with East Japan Railway Company (JR East) participate in Too Good To Go. Of approximately 85,000 loaves of bread scheduled for disposal last August, about 14,000 were sold through the app.
The app has also changed store operations. Previously, stores reduced the amount of products on display from the evening onward to limit disposal losses. Now that remaining products can be sold through the app, it has become easier to keep more items on display until closing. The company explained that this can reduce not only disposal losses but also missed sales opportunities caused by insufficient inventory.
TABETE, another Japanese food-waste reduction app, had approximately 1.32 million registered users as of July. Its user base grew by 320,000 over the previous one year and nine months. Unlike Too Good To Go, which generally sets prices at half or less of the regular price, TABETE allows each store to determine its own selling price.
Hotels make side dishes and boxed meals from food left over from breakfast buffets. Vessel Hotel Development offers side dishes starting at 100 yen, or approximately 855 won, and boxed meals for 300 to 500 yen, or about 2,565 to 4,275 won. Mitsui Fudosan Hotel Management also operates similar services at around 14 hotels and said, "They sell out within minutes every time."

Japan's heavily import-dependent food supply structure is also contributing to rising food costs. According to the Ministry of Agriculture, Forestry and Fisheries of Japan, the country's calorie-based food self-sufficiency rate stood at 37% in fiscal 2025, near a record low. When the yen weakens, the prices of imported food and raw materials rise, adding pressure to domestic food prices.
An analysis by the Cabinet Office of Japan found that the share of imports used directly in food manufacturing rose from 10.0% in 2000 to 14.2% in 2020. Exchange-rate fluctuations also tended to be reflected in consumer prices for food excluding fresh foods and rice, with a time lag of about one year.
The Japanese government plans to cut the consumption tax rate on food from 8% to 1% for two years starting next April. However, some within the government have pointed out that while the measure could ease the burden on households, it would not fundamentally solve the problem of rising food prices.
As food expenses remain difficult to reduce, demand for discount apps is growing. However, expanding the number of participating stores remains a challenge because some businesses worry that revealing their food waste or selling products at a discount could damage their brand image.
Kazuma Kawagoe, president of Kockking, the operator of TABETE, said, "Quite a few businesses decline to adopt the service because they do not want to reveal the fact that food waste occurs in the first place."
Japan's food waste totaled 4.61 million tonnes in fiscal 2024, while the resulting economic loss was estimated at 3.8 trillion yen, or approximately 32.49 trillion won. Consumers have significant room to save on food expenses, and stores can reduce disposal losses. The Nihon Keizai Shimbun pointed out that securing participating stores where people can easily shop near their homes and workplaces will be crucial to turning growing demand for savings into sustained use.
[email protected] Seo Hye-jin Reporter