Restaurants in Japan boost delivery services ahead of tax windfall

Relief measure cooks up demand for Uber Eats and local services

20190128N Uber Eats

An Uber Eats staff delivers food from McDonald's in Tokyo's Shibuya district. (Photo by Rie Ishii)

YUKIHIRO KAWANA, RYOSUKE EGUCHI and NODOKA TOMOBE, Nikkei staff writers

TOKYO -- Japanese restaurant chains are expanding on-demand delivery services as exemptions in an upcoming tax hike, along with the spread of smartphone apps, are expected to stoke demand among consumers juggling a busy schedule.

When Japan's consumption tax goes up to 10% from 8% in October, eating in at restaurants will be subject to the new hiked rates, but takeout and deliveries from the same restaurant will enjoy a reduced rate of 8% as part of government measures to cushion the impact. This, in turn, is creating an opportunity for the restaurant industry.

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