Restaurants in Japan Feel Effect of U.S. Beef Ban

TOKYO —  Fast-food chain Yoshinoya says it will stop serving its trademark beef-and-onions rice dish until Japanese authorities lift a ban on U.S. beef imports.

Restaurant chain Royal Host is considering whether it can increase the amount of beef it gets from Australia. McDonald’s Japan has taken out full-page newspaper ads reassuring consumers that its patties are made only with Australian beef.

News that a cow in Washington state tested positive last week for “mad cow” disease -- the first known U.S. case of the brain-wasting bovine ailment -- has created a quandary for restaurant chains in Japan, the world’s biggest customer for U.S. beef.

Japan has only recently regained its appetite for beef after a “mad cow” scare at home. So restaurant groups are rushing to switch suppliers and offer alternatives.

But for low-cost chains such as Yoshinoya, there’s no substitute for cheap U.S. beef. With 980 restaurants nationwide, Yoshinoya relies on U.S. suppliers for 99% of the beef used in its gyudon beef bowl -- which at about $2.50 is a staple for office workers and budget-conscious students.

Yoshinoya President Shuji Abe said the chain would run out of beef stocks in February. If the ban on U.S. beef imports continues, Yoshinoya will be unable to keep serving its signature product, he said, adding, “I never thought our business would come to this.”

Japanese beef is more expensive than imports and usually is reserved for delicacies such as sukiyaki, thin strips of marbled meat cooked with vegetables. At one Tokyo meat shop this week, 2 pounds of domestic sukiyaki-quality beef sold for about $28, twice the price of comparable imported meat.

Japan imports about two-thirds of its beef. Last year, 47%, or more than 226,000 tons, came from the United States. The rest comes mostly from Australia and New Zealand.

It is unclear when Japan will consider lifting the ban on U.S. beef. The government is reportedly holding out for tougher U.S. safeguards.

The ban could cost U.S. beef producers, which sold $1.03 billion worth of beef, veal, prepared beef products and variety meats to Japan in 2002, accounting for about 32% of total exports.

Japanese supermarkets remain divided on whether to pull U.S. beef from their shelves.