This outdoor restaurant in Tokyo hiked prices for its main course menu by over 10 percent.

It says not only are food prices rising but labor costs are also going up.

"We decided that we don't have any choice but to ask our customers to pay more."

A budget barber chain with nearly 600 outlets across the nation has taken a similar step.

Customers came back after the pandemic.

But many of its stores were operating below capacity

because they did not have enough hairstylists.

"It's difficult to fill all the seats due to a staff shortage.

Sales would probably increase if we had more stylists."

The company decided to make a major change given its price-conscious business model.

It hiked rates for haircuts by over 10 percent

to boost staff numbers through measures including higher wages.

So far, customers have taken the increase in stride.

"It has always been very cheap, so paying about a dollar more doesn't really bother me."

Moves to raise prices to offer higher pay are becoming increasingly evident in the consumer price index for services.

It's going up, and one expert says the indicator has a strong correlation with labor costs.

"One of the key elements behind deflation was the fact that the index had not risen.

So, a rising number means that the economy is at a major turning point

in terms of the sustainability of price increases."

The Bank of Japan wants to achieve stable inflation,

and it's been watching the situation closely.

"We are hearing more and more about changes taking place in how companies set wages and prices."

The focus is now on whether the trend will spread to the wider economy.

A labor ministry council is discussing how much the nation's minimum wage should be raised.

The government wants to see it hit 1000 yen, about 7 dollars an hour.

But this means firms would need to implement the country's largest-ever minimum wage hike.

And this expert says that won't be easy for small to medium sized businesses,

which employ most of Japan's workers.

"It would come to nothing if firms have to cut staff or go under because of a higher minimum wage.

It's important for the government to create an environment

where smaller firms can be profitable enough to raise wages."

Momentum finally appears to be building in Japan for wages to rise.

But there are risks in pushing them too far too fast without the proper support.

In June, revelers joined a parade in Los Angeles

to call for an end to discrimination and prejudice against the LGBTQ community.

"This is amazing. Everyone can be themselves."

According to a 2021 Gallup poll, roughly 21% of Generation Z Americans

who have reached adulthood - those born between 1997 and 2003 - identify as LGBT.

As more people from Gen Z enter the workforce,

experts believe that the purchasing power of the LGBTQ community will gain growing prominents.

One financial services company in New York is banking on it.

The startup aims to provide service that caters to the LGBTQ community.

Myles Meyers, the CEO, founded the firm after he says he experienced discrimination in the ficancial servces industry.

He says his company conducted a study that indicates nearly half of LGBTQ people

have faced discrimination in similar situations.

He hopes to be a one-stop shop for finance, including banking, insurance and credit cards.

"There is just continuation of becoming a better serving organization

to the people that are looking for fairness and decency in financial services."

LGBTQ focused services are also making ways in the tourism industry.

Patrick Gunn runs a successful travel company focused on the LGBTQ community.

He makes sure staff have a deep understanding of the issues they face,

and arranges cruise ships and ports of call accordingly

so that people can vacation without discrimination.

"Until the world is a more kind and accepting place,

you know, we'll be a safety boundary vacation for them

to really be able to be their authentic selves."

The company is seeing a growing number of repeat customers,

and it's experiencing a surge in reservations for a luxury cruise this summer.

YouTuber Nick DiRamio is joining again after feeling so liberated and relaxed during his last trip.

He says it was a pleasant escape from daily life

where he faces discrimination and uncomfortable situations.

"I don't mind paying a little extra for a great experience.

I want to spend the money on a vacation.

I would like to spend it somewhere that I know I'm going to be comfortable, well taken care of."

As more businesses crop up that cater to the LGBTQ community,

it's hoped it will show other companies that success is inclusive.

A new type of machinery can extract the natural fibers from pineapple leaves for use in apparel.

And apple pulp is being used to make a special line of synthetic leather goods.

Today's On-Site report features businesses that are using fruit waste

to create fashion products that offer a distinct local taste.

Okinawa is Japan's southernmost prefecture.

It produces 99% of the country's domestically grown pineapple.

Fashion apparel made with fibers extracted from Okinawan pineapple leaves

are now starting to attract attention.

CEO Uda Etsuko and her company are behind the project.

Her company specializes in producing and selling various items

that center around using Okinawan agricultural waste products as a key ingredient.

In 2019, she noticed piles of pineapple leaves left sitting in a farmer's fields

and wondered if she might be able to use them for something.

"I was shocked when I first saw the massive mounds of leaves that were being left out to rot.

I thought, if we could figure out how to use them,

we might have found ourselves an untapped resource."

Because pineapple leaves are extremely tough,

farmers usually have no choice but to discard them in piles on their land.

"Once the fruit and crown have been separated,

the leaves are useless for us and just get in the way."

After doing some research, Uda discovered that some traditional textiles in the Philippines

were made out of pineapple leaf fibers.

Wanting to give it a try herself, she imported an old piece of machinery.

A metal blade first crushes the thick outer-skin of the leaves,

then the machine uses a scraping tool to remove the fiber strands.

The entire process required more than 10 different steps, many of which had to be done by hand.

Including drying, the total time took about 12 hours,

so Uda decided it just wasn't worth the time and effort.

But rather than giving up, she spent 3 years working on developing...

...a water-based fiber extraction machine.

It uses a high pressure stream of water to break up the surface of the leaf...

...and remove the flesh surrounding the fibers in one single process.

Once a leaf is inserted, it takes only about 10 seconds to extract the fiber.

By creating their own machine, the company is able to complete the entire process

10 times faster than before.

With conventional machines, the fibers would come out with a green hue to them,

but with this machine they come out white or almost clear.

This allows us to skip several of the follow-up steps and greatly increase productivity.

The company is working on implementing a water recycling system

so the machine can further reduce its environmental impact.

While the leaves seem indestructible, the fibers themselves are relatively weak,

so 30% pineapple leaf fiber is blended with 70% cotton to create a more durable fabric.

Offering greater absorbency and moisture wicking properties than hemp,

the pineapple fibers also feel smooth and soft to the touch.

These traits have allowed the fibers to be used in a variety of products,

including locally made aloha shirts.

These specially designed jeans contain 14% pineapple fiber.

Since being released by a popular high-end Japanese denim maker in January of 2021,

over 200 pairs have been sold at a price about $300.

Uda plans to have 20 of the machines up and running in Okinawa before the end of 2023...

And is also working on expanding to various other pineapple producing countries throughout Asia.

"I believe Okinawa can serve as the source for a new domestic textile industry here in Japan.

I also think that fiber made from discarded pineapple leaves can offer a natural

and more environmentally friendly option for the fashion industry."

Located in the northern Nagano prefecture, the town of Iizuna is famous for its apples.

This small town is also home to a project that is turning locally generated waste into something positive

- a collection of synthetic leather bags, wallets, and other goods made with an apple-based powder.

The mastermind behind the project is Ito Yuri.

After working at a fruit processing company in Nagano for 10 years,

she became upset with amount of waste she was seeing within the industry.

"So much useable fruit ends up getting thrown out

just because it doesn't meet high industry standards

– and it's not just the fruit – it's the time, money, and labor that went into growing it!"

Around the same time, she attended a sustainable fashion exhibition

and discovered vegan leathers made using fruit as an ingredient.

In 2022, Ito proposed creating goods made from a synthetic leather

that incorporates Nagano apples to the Iizuna government.

And soon after they began working on a joint project together.

Each year, farmers in the town of Iizuna produce over 8,000 tons of apples.

Of that amount, about 20% are used for making juice or other processed products.

On heavy production days, over one ton of pomace or waste pulp is produced.

A local cider producer is also participating in Ito's project.

"Up until now, the only use we could find for it was feeding it to cows,

but through Ito's idea we were able to use it to make new products like wallets and bags.

It's pretty exciting!"

After drying the apple pomace for 48 hours, the company uses a special machine

that was procured by the town of Iizuna to turn the pomace into a fine powder.

Ito's company then purchases the apple powder from the town of Iizuna

and sends it to a synthetic leather manufacturer...

that specializes in making synthetic leathers used in car interiors.

It normally creates synthetic leather by adding several layers of polyurethane to a base cloth.

They were able to reduce the amount of polyurethane needed

by adding 30% apple powder to one of the layers.

Despite the apple additive, the final product is just as strong and resilient as standard synthetic leathers.

The Japanese word for apple is “ringo” so the new material was named Ringo Leather.

This Nagano-based bag maker is currently using Ringo Leather to create a variety of new products.

"I find the material to be quite soft and supple.

Plus, it's much more uniform than real leather, so it's easy to work with."

In May of this year, the company began selling Ringo Leather bags

for just over $400 and wallets for about $270 on its website.

It also offered several other products through a crowdfunding project,

which brought in an additional $21,000 in sales.

"By teaming up with local businesses and using Nagano apples,

I hope to create a successful brand that not only can become a representative product for our prefecture,

but that can help to expand the circular flow of the economy here."