Commentary: Japan’s high standards of service face ‘shrinkflation’

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Commentary: Japan’s high standards of service face ‘shrinkflation’
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Waiting for pancakes in a Yokohama fast food outlet serves up a reminder of the labour shortage crisis, says Financial Times’ Leo Lewis.

The problem, as Japan cannot yet quite admit to itself, is that the necessary staff probably won’t come and the interim solution - a tactic that might best be thought of as “service shrinkflation” - cannot fool customers forever.

Versions of the crisis are everywhere - some are unsettling. In a country where most of the land mass is hills and valleys, members of the Japan Society of Civil Engineers worry about the huge national shortfall of expertise in bridges and tunnels. Grumpy Japanese websites track in great detail the ways, measurements and timeframe in which shrinkflation has reduced the length of beloved ice lollies, the number of processed cheese slices in a pack or the number of Melty Kiss chocolates in a sachet. A favourite joke centres on Fujiya’s popular Country Ma’am chocolate chip cookies and the forecast that, under its current rates of shrinkflation, each one will be smaller than a ¥1 coin by 2040.

Japan’s services sector - the amazing 24-hour convenience stores and restaurants, the expertly staffed shops, the ubiquitous vending machines, the insanely regular trains and so on - looks very much as if it will have to play both parts of that shrinkflation game. Where companies in other countries may shrug and deliver a worse service as circumstances dictate, Japanese businesses are prisoners of their historic refusal to do that.

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