Risk of karaoke venue closures and lower sales due to COVID-19
First written in FY2020-Q2. 7 of 17 entries say "Worsened", first in FY2020. Latest entry: FY2025-H1.
TETSUJIN Holdings moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 24 of 39 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「Karaoke demand showed a recovery trend in both personal and business use, but」
Personal and business use began to recover, reducing demand and operating constraints caused by COVID-19. However, the decline in use for after-parties and late-night use remained. - FY2024-Q3MitigatedAnnual report
「Personal consumption began to recover against a backdrop of easing activity restrictions, normalization of economic activity and substantial wage increases, particularly among large companies.」
The disclosure described a situation in which the easing of activity restrictions and normalization of economic activity reduced operating constraints and the risk of lower demand caused by COVID-19. - FY2024-Q2MitigatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, Japan's economy continued to recover gradually as social and economic activity normalized further from the pandemic, supported by improvements in employment and income conditions and a recovery in inbound demand.」
It was stated that the easing of activity restrictions and normalization of social and economic activity reduced the risk of operating constraints and lower demand caused by COVID-19. However, business customers continued to refrain from use, and late-night use remained lower. - FY2024-Q1MitigatedAnnual report
「The easing of activity restrictions related to COVID-19, improvements in employment and income conditions, and the recovery trend in inbound demand advanced the normalization of economic activity.」
The easing of activity restrictions and normalization of economic activity reduced operating constraints caused by the pandemic. However, the delayed recovery in use by business customers and the decline in use for after-parties remained. - FY2023-Q3MitigatedAnnual report
「The Group's core karaoke-room business continues to face a difficult situation due to the diversification of work styles, such as teleworking, resulting from prolonged measures to prevent the spread of COVID-19, the emergence of new drinking styles such as drinking at home, business customers refraining from use to avoid risk, and lower personal use resulting from changes in leisure activities during the pandemic. However, customer traffic began to return in the third quarter consolidated accounting period, showing a gradual recovery trend.」
Although weak demand continued due to teleworking, drinking at home and business customers refraining from use, customer traffic began to return from the third quarter consolidated accounting period, indicating a gradual recovery. - FY2023-Q2Karaoke demand recovering slowly even amid recovery without restrictions on activitiesAnnual report
「Although economic recovery with COVID-19 led to a substantial recovery in everyday food-service businesses such as the ramen business, recovery in use of the core karaoke-room business by business customers has been weak and gradual」
Even after the transition to economic recovery without restrictions on activities, demand recovery in the core karaoke business remained weaker than in everyday food-service businesses. - FY2023-Q1Shift to recovery without restrictions on activities during the eighth waveAnnual report
「Although the food-service business showed some signs of recovery as the economy recovered from the pandemic, use of the core karaoke-room business by business customers continued to be subdued. Downward pressure on consumption from higher utility costs and prices is also expected to keep consumer spending cautious for some time.」
The food-service business showed some recovery as the economy recovered without restrictions on activities, while business customers continued to refrain from using karaoke services and consumption remained under pressure from higher prices and utility costs. - FY2022WorsenedAnnual report
「The rapid increase in infections from a new variant, Omicron, beginning at the start of the year marked the sixth wave and caused the loss of business opportunities during the peak season for farewell and welcome parties. During the following summer, the seventh wave brought the largest increase in infections to date, leaving demand for karaoke and food services in a persistently difficult operating environment」
The sixth and seventh waves actually resulted in lost opportunities for demand from farewell and welcome parties and summer events, and the impact of COVID-19 on karaoke and food-service demand continued throughout the fiscal year. - FY2022-Q3WorsenedAnnual report
「The rapid spread of the Omicron variant of COVID-19 beginning in 2022 resulted in a significant loss of opportunity, as the Company was unable to capture demand for peak-season events such as farewell and welcome parties. Although the number of infections temporarily trended downward, it subsequently began rising again, leaving the timing of containment uncertain.」
It was stated that the rapid spread of Omicron prevented the Company from capturing peak-season demand for events such as farewell and welcome parties, resulting in a significant loss of opportunity. The reversal to a renewed increase in infections has also kept the timing of demand recovery and containment uncertain. - FY2022-Q2WorsenedAnnual report
「The rapid spread of the Omicron variant of COVID-19, which began at the start of the year and resulted in the largest number of infections to date, caused individuals and companies to increasingly refrain from using the services again, creating a difficult operating environment.」
It was stated that the rapid spread of Omicron caused demand that had recovered after the state of emergency was lifted to decline again, while individuals and companies increasingly refrained from using the services. - FY2022-Q1Risk of new variants after the state of emergency was liftedAnnual report
「Although the spread of COVID-19 in Japan has been substantially contained since the state of emergency and related measures were lifted at the end of September 2021, concern remains over the spread of a new variant, Omicron, toward year-end.」
While the lifting of the state of emergency and related measures contained the spread of infections in the near term, the risk was disclosed that the spread of a new variant could lead to renewed reduced hours and temporary closures. - FY2021-Q3WorsenedAnnual report
「As repeated waves of COVID-19 led to the issuance of states of emergency and priority preventive measures in the affected areas where the Group operates its core karaoke and food-service businesses, namely Tokyo and the three surrounding prefectures, demand for these businesses continued to decline significantly, affecting performance.」
The continued spread of COVID-19 and issuance of states of emergency and priority preventive measures tightened operating restrictions, including requests to close, restrictions on serving alcoholic beverages and requests to prohibit karaoke use. A 42-day state of emergency and related measures beginning on 12 July 2021 were also disclosed, making the outlook for demand recovery even more uncertain. - FY2021-Q2WorsenedAnnual report
「In response to the rapid spread of COVID-19, the state of emergency under the Act on Special Measures for Pandemic Influenza and New Infectious Diseases Preparedness and Response was re-declared for Tokyo and the three surrounding prefectures on 8 January 2021 and extended through 21 March. Demand in the affected areas where the Group operates its core karaoke and food-service businesses declined significantly, affecting performance. In Tokyo and the three surrounding prefectures, requests for shorter operating hours at restaurants continued during the period designated for preventing a rebound in infections. As demand is expected to take a considerable time to recover, the impact on Group performance may continue.」
The re-declaration and extension of the state of emergency and requests for shorter operating hours actually reduced demand in the affected areas and affected performance, with demand recovery expected to take a considerable amount of time. - FY2021-Q1WorsenedAnnual report
「In response to the rapid spread of COVID-19, the state of emergency under the Act on Special Measures for Pandemic Influenza and New Infectious Diseases Preparedness and Response was re-declared for Tokyo and the three surrounding prefectures from 8 January to 7 February 2021. As a result, lower customer numbers caused by reduced hours ending at 8:00 p.m. or temporary closures at karaoke and food-service stores in the affected areas may significantly reduce Group sales.」
Regarding COVID-19 risk, the re-declaration of a state of emergency in Tokyo and the three surrounding prefectures and the additional restrictions of reduced hours ending at 8:00 p.m. or temporary closures were disclosed. - FY2020WorsenedAnnual report
「Business operations have been severely affected amid the spread of COVID-19. The operating environment remains difficult as the karaoke industry faces tougher conditions and intensifying competition, while the increase in the consumption tax rate and the spread of COVID-19 have further dampened consumer sentiment.」
Store closures and voluntary suspension of operations due to the spread of COVID-19 affected full-year performance, resulting in a ¥301 million loss from temporary closures and a 22.8% decline in sales. - FY2020-Q3MaterialisedAnnual report
「Due to the spread of COVID-19 and the declaration of a state of emergency issued on 7 April 2020 under the Act on Special Measures for Pandemic Influenza and New Infectious Diseases Preparedness and Response, temporary store closures and voluntary suspension of operations in the Group's karaoke and food-service businesses may reduce sales. Even after the declaration is lifted, recovery in performance is expected to take a considerable amount of time while the end of the pandemic remains uncertain, and Group sales may fall below plan.」
Regarding the COVID-19 risk added in the previous quarter, store closures, voluntary suspension of operations and lower sales actually occurred from April to May 2020, and it was stated that recovery would take time even after the declaration of a state of emergency was lifted. - FY2020-Q2First statedAnnual report
「Due to the spread of COVID-19 and the declaration of a state of emergency issued on 7 April 2020 under the Act on Special Measures for Pandemic Influenza and New Infectious Diseases Preparedness and Response, the temporary closure of all karaoke stores operated by the Group's karaoke and food-service businesses may reduce customer numbers and cause Group sales to fall below plan.」
The spread of COVID-19 and the temporary closure of all karaoke stores due to the declaration of a state of emergency were recorded as new business risks. Subsequent events state that all stores were in fact temporarily closed and operations voluntarily curtailed.