What's next for "delicious and healthy employee cafeterias"? We asked Shigeta Arai, Food Business Development Director at MONOSUS Food Research, about the future of everyday "food" in the office

Hello, I am writer Emiko Tobita. This is my third time writing for the Monosasu website.

The other day, I had the opportunity to visit a company cafeteria. I was happy to be able to have lunch at the employee price in a space that is usually off-limits to the public, but when I actually tried it, I was left thinking, "What?" The pasta was dry and the salad was small and soggy. To be honest, I thought, "It's great when you're short on cash, but it would be lonely to have this every day."

On the other hand, I have also visited company cafeterias that are delicious and well-balanced nutritionally, making me want to go there every day. I wonder if company cafeterias these days are becoming polarized.

That's a long introduction, but Monosus has a team called " MONOSUS Shashokuken " that manages and produces company cafeterias. This team is led by Monosus CDO Manabe Taichi and Arai Shigeta, who was the first food manager at Google Japan and later served as a director at food tech company nonpi before joining Monosus in 2020. In October, Kudan Shokudo for the Public Good, a public cafeteria created by Shashokuken, opened in Kudanshita, Tokyo. This time, we spoke with Arai about the theme of "The future of everyday food in the office."

"Company Dining 3.0" - where conversations are sparked and innovation occurs

--Please tell us why you started paying attention to company cafeterias.

My experience at Google Japan was a big factor. Going back a little, the history of employee cafeterias began during the period from the postwar reconstruction to the period of high economic growth. When a major manufacturer built a factory in the suburbs with 2,000 employees, they built an employee cafeteria because there were no restaurants nearby that could serve that many people. What was needed at the time was to provide food quickly and cheaply in quantities appropriate for the number of people. It was quite difficult to serve high-quality food to 2,000 people, so taste was secondary. That custom has continued ever since.

However, Google tried to value communication through food. They invested resources properly and used data to eliminate waste. Seeing that, I realized that there was potential in company cafeterias.

——What do you mean?

There's a lot of waste in the food and beverage industry. In a normal restaurant, there are days when it's very busy and days when no customers come at all. But on the day itself, you can't tell your part-time staff, "I'm not busy today, so you don't need to come." So, on some days, your income and expenditures are negative.

Kudan Shokudo operated by MONOSUS Shokuken KUDAN-SHOKUDO for the Public Good

On the other hand, company cafeterias cater to a certain number of people, so operations are relatively stable. Collecting data makes it even easier to make predictions. This allows you to promise organic farmers who grow delicious vegetables, "We'll buy this much every month." If farmers are worried that "even if we make good produce, no one will buy it," they won't be able to work on farming with peace of mind. Depending on how it's done, company cafeterias can create a cycle that is good for the people who make it, the people who eat it, and society.

-- Mr. Arai, you often refer to the new type of employee cafeteria as "Company Cafeteria 3.0."

"Company Cafeteria 1.0," as I mentioned earlier, is a company cafeteria that was created during the postwar reconstruction period and specialized in filling the stomach. After that, around 2000, the number of company cafeterias that consider the health of employees and propose delicious, nutritionally balanced menus has increased. This is "Company Cafeteria 2.0." However, there is still something missing. That is, "who you eat with and how."

The mission of Google's company cafeteria is to "enable employees and the community to choose healthy meals and enjoy the dining experience so that they can be at their best." Everything, including the size of the food and plates and the arrangement of the tables, is designed to "stimulate conversation." This is "Corporate Cafeteria 3.0." When people gather together, conversations begin, and the ideas that emerge from these conversations lead to innovation. In fact, it is said that Gmail was born from a conversation in the company cafeteria.

Kudan Shokudo KUDAN-SHOKUDO for the Public Good

-- Specifically, what sort of ingenuity did you use?

Instead of counter seating where people could sit alone, we installed tables that seat eight people, which encourage conversation. We also made sure to include at least one vegetable in the salad bar that people don't usually see, such as an eggplant shaped like a tengu's face or a baby carrot. The aim is to provide an opportunity for people to talk to the person next to them by asking, "What is this?" or "How does it taste?" We also held workshops inviting producers, as well as events such as pig butchering and mochi pounding. These events were well received as they sparked communication with people from other departments and outside the company, and were also educational.

Another thing I was conscious of was for the cafeteria staff to actively talk to employees. At Google, employees saw us as "part of the team" rather than "contractors," and the management also told us to "value interactive communication," so I told the 80 cafeteria staff to "make at least 20 friendly employees." That way, we could cover 1,600 employees. When staff talk to employees in a friendly manner, such as "You seem busy lately" or "What did you eat yesterday?", it becomes a place where conversations are born. We thought of ourselves as community managers and worked on it.

Reasons for achieving a 50% usage rate of company cafeterias

-- While there are an increasing number of attractive company cafeterias like this, it seems like there are still a lot of company cafeterias out there that wouldn't be considered particularly tasty. Why is that?

I think the structural problems in the industry are also a big problem. The market size of the corporate food industry has remained unchanged at about 1.7 trillion yen. If each company wants to increase sales, they have no choice but to take market share from others. This makes the buyers stronger. The requirements for the competition are often unreasonable, such as "Please provide a menu using organic vegetables for 500 yen." So it is unreasonable to expect them to hire skilled chefs and serve delicious food.

Furthermore, it often happens that the person in charge doesn't collect data and just makes an intuitive assessment, saying, "Isn't this seasoning a little weak?", and the recipe has to be revised even though many employees are actually satisfied with it. If this happens repeatedly, the provider loses the will to think independently and make improvements, and the management becomes passive, "doing what they're told."

-- Do you ever get caught in that kind of negative loop?

When I participate in a competition, I say, "We can provide this kind of service based on this philosophy. However, the numbers don't match up with the conditions you've given us. I'd like to discuss this point." Rather than blindly accepting the prerequisites presented by the other party, unless both parties properly discuss the conditions that best suit their needs, the bad habits of the industry will never change, and the company cafeteria will not be a good place for either clients or employees. It's important to be courageous and speak up.

Kudan Shokudo serves different set meals every day, with ingredients sent directly from related producers all over Japan.

-- So even if you make a proposal that goes against the assumptions, it's still accepted.

I try to make realistic proposals while taking into consideration the other party's position and circumstances. For example, I would say something like, "It's fine for employees to pay 500 yen. But if we were to offer something of 750 yen quality for 500 yen, we would incur a loss of 250 yen per meal. Could you please subsidize that amount? In return, I will show you how much we can increase the utilization rate of the company cafeteria." In the company cafeteria industry, it is said that a utilization rate of 30% is considered good, but I believe we can increase the utilization rate even higher.

In fact, when a company consulted us about their company cafeteria, we said, "For the first three months, we'll charge the same price as the previous supplier. If we achieve a 50% utilization rate during that time, please provide us with a compensation." At that point, the utilization rate was 36%, so we increased it by 14%, and we were able to receive the compensation.

--It's amazing that you were able to achieve a utilization rate of 50% there.

Unlike eating out, company cafeterias are everyday meals, so there's no need to be eccentric. It's important to stick to the basics, such as serving hot food hot and cold food cold, based on the Japanese culture of one soup and three side dishes. However, many company cafeterias get too busy and end up neglecting the basics, thinking, "We have a lot of employees, so we need to increase the menu."

However, when we analyze the number of dishes served, 20-30% of the menu items account for 80% of the total. By eliminating unnecessary items, operations will not become complicated and we will have the leeway to serve hot dishes while they are still hot. In order to maintain the basics, it is necessary to organize operations.

Bringing together small producers and connecting them with company cafeterias

-- Is there anything else that you consider important when running a company cafeteria?

Use as few additives and chemical seasonings as possible, and serve seasonal ingredients when they are in season. You might think, "That's easy," but it's actually difficult. If you accept strict conditions at the beginning, you will end up using the same ingredients in all of your partner's cafeterias, and you will have to lower the price to cover the promise of purchasing in large quantities throughout the year, and that will create a structure where you just make a profit. That's why you can't use seasonal vegetables flexibly.

-- The Food Hub Project, which has a deep connection with Shashokuken, has the motto of "connecting small things with small things," or in other words, "connecting small-scale production with small-scale consumption." In the case of company cafeterias, the number of meals served is large, so I don't think they can be called "small."

I want to combine small things into medium-sized ones and connect them to company cafeterias. Specifically, the food hub will collect the produce of small farmers in Kamiyama and send it to Tokyo. I would like to create a similar system in other regions so that we can provide food according to the number of meals. If companies in Tokyo deepen their respect for producers and start to face the essence of food, other things will start to branch out, and I fantasize that the food of working people throughout Japan will become richer.

Food Hub Project : A project started in Kamiyama Town, Tokushima Prefecture, to connect local agriculture to the next generation. With the motto of "local production for local food," the company operates a restaurant, bakery, and food store that uses plenty of produce grown by its own agricultural team and affiliated farmers.

——What do you think about the health of your employees?

Forcing people to be "healthy" won't work, so I think it's better to create an environment where they can naturally become healthy. For example, in a buffet-style company cafeteria, you could put a salad station at the beginning to make it easier to eat.

When I was managing the drinks and food in Google's break rooms, I noticed that there was a lot of chocolate on the counter. At first, I thought it was bad for health, so I reduced the frequency of refills, but then I thought, "No, this is not a good way to do it," and started putting the chocolate in a jar. Then, it became a little more of a hassle to open it, and consumption dropped by one third. Just a little ingenuity can make a big difference in people's behavior.

The potential of a workplace cafeteria that can be used by people working in the same building across company boundaries

--In October 2022, the employee cafeteria " Kudan Shokudo KUDAN-SHOKUDO for the Public Good " produced by Sha Shokuken opened in the office building "Kudan Kaikan Terrace", which occupies the former Kudan Kaikan building.

It is attached to the members-only shared office " Business Airport Kudanshita " operated by Tokyu Real Estate, and has a company cafeteria and cafe space. It is basically a cafeteria for the companies that are located in Kudan Kaikan Terrace, but the general public can enter after peak lunch hours. The cafe space is open all day. It is located next to the moat of the Imperial Palace, in a great location for viewing cherry blossoms. If I lived nearby, I would definitely frequent it.

--What are the benefits of a workplace cafeteria like Kudan Shokudo, which can be used by people who work in the same building regardless of company boundaries?

In Japan as a whole, only 22.7% of companies have a company cafeteria. It costs about 100 million yen to build a new company cafeteria, so it's quite difficult. So, the idea that it would be good if office buildings with multiple companies had a common company cafeteria was born. For developers, it differentiates them from other office buildings, and it makes it easier for tenant companies to subsidize food by reducing initial costs. Employees can pay 500 yen to eat food that costs around 750 to 800 yen, and we can provide good food. There are such benefits.

If conversations between employees from other companies can take place in the cafeteria, it will lead to more innovation than if employees from the same company gathered together. It would also be nice to collaborate with the local community. We could interact with local producers and people, cultivate a local vegetable garden together, and use the produce we harvest there. It could be called "Corporate Dining 4.0."

--If users come from multiple companies, I imagine there are different kinds of challenges to overcome compared to a company cafeteria.

Usage and preferences will vary depending on the company, and it will be an issue how to connect employees from companies with different cultures. Rather than deciding on that in advance, we want to try it out and see how it goes and then come up with a strategy. The good thing about company cafeterias is that you can make small adjustments as you go.

One of Kudan Shokudo's popular dishes is the salad bowl

- Is there anything MONOSUS Food Research Institute would like to tackle in the future?

We are currently working on a project to create a company cafeteria as part of the redevelopment of the town. An office building and a high-rise apartment building are to be built, and we are considering putting in an integrated workplace cafeteria and grocery store like FarmMart&Friends (a grocery store opened in Yoyogi by MONOSUS Co., Ltd. that aims to be a "friends' food, friends' food").

You can eat food made with produce grown by related producers, and if you think a vegetable is delicious, you can buy it to take home. It's a combination of office food and home food, making it truly everyday food. I think it would be interesting if it were successful and could be expanded to other regions.

However, right now, we are still in the stage of hypotheses. Based on our background in Google, we are trying and erroring to find out what we can do as MONOSUS Shokuken. After Kudan Shokudo opens, we will probably hear some stories like, "This didn't work out," or "But here we can see possibilities that we never thought of." I hope you will be able to hear our stories again at that time.

—— Yes, I'd love to interview you again! I'm looking forward to it.