Sustained Growth of the Restaurant Promotion Support Business

「To give concrete form to this direction, the Group formulated “Medium-Term Management Plan 2028” covering the 3 fiscal years from the fiscal year ending March 2027 through the fiscal year ending March 2029.」

「In the previous fiscal year, the company achieved the return to profitability targeted for the second year under its medium-term business policy covering the fiscal years ending March 2024 through March 2026, and transitioned from a phase of reducing losses through cost controls after the COVID-19 pandemic to a phase of expanding profits through revenue growth.」

「Through these activities and other initiatives, the company achieved the return to profitability in the fiscal year ending March 2025 set out in its medium-term business policy, and its performance reached a major turning point toward renewed growth.」

「In the current fiscal year, the second year of the medium-term business policy covering the fiscal years ending March 2024 through March 2026, the company is working to strengthen the growth potential of its core restaurant support business based on the view that it is important not only to achieve profitability but also to ensure a transition to a profit expansion phase in the following fiscal year and to expand stable revenue sources that support proactive business development aimed at creating new value from a long-term perspective. It has designated “strengthening Rakuten Gurunavi,” “fully launching the marketing agent,” and “enhancing product development capabilities” as priority initiatives.」

「Under its medium-term business policy for the three fiscal years from the fiscal year ending March 2024 through the fiscal year ending March 2026, the company is focusing on “transforming the Gurunavi website,” “establishing a marketing agent,” “making Gurunavi FineOrder a second core service,” and “expanding DX services.”」

「Within restaurant promotional services, revenue from stock-based services exceeded the level in the same period of the previous year by 7.2%, as a result of the company’s focus since the previous fiscal year on proposals to upgrade plans and increase fees for existing member restaurants, steadily building revenue. … Overall revenue from restaurant promotional services increased 5.3% year on year, and the company’s core revenue recovered steadily.」

「Within restaurant promotional services, revenue from stock-based services exceeded the level in the same period of the previous year by 7.3%, as a result of the company’s focus since the previous fiscal year on proposals to upgrade plans and increase fees for existing member restaurants, steadily building revenue. The number of restaurants paying for stock-based services also shifted to a gradual growth trend after bottoming out in May.」

「Within restaurant promotional services, revenue from stock-based services exceeded the level in the same period of the previous year by 5.8%, as a result of the company’s focus during the previous fiscal year on proposals to upgrade plans and increase fees for existing member restaurants, steadily building revenue.」

「As a result of these initiatives, ARPU for stock-based services in the fourth quarter rose 37% from the same period of the previous year.」

「As a result of these initiatives in the promotional support area, ARPU (monthly contract value per restaurant) increased, and revenue from stock-based services has been recovering from a trough in the first quarter of the current fiscal year.」

「During the current fiscal year, the company’s business policy is to steadily restore its core business and achieve a return to profitability in the fourth quarter without being swayed by an uncertain business environment, by pursuing thorough selection and concentration of resources and strengthening collaboration with external companies, while also building new businesses and services that will drive the growth of its operations over the medium to long term.」

「During the current fiscal year, the company intends to achieve a steady return to profitability and stabilize its financial position without being swayed by an uncertain business environment, while promoting thorough selection and concentration of resources and strengthening collaboration with external companies in order to build new services and businesses that will drive growth over the medium to long term.」

「During the current fiscal year, toward a recovery in performance and renewed growth, the company worked to expand its target customer base and improve customer satisfaction by expanding support services in its restaurant promotional services and reviewing sales activities and membership plans. It also worked to build revenue sources outside restaurants through the creation of new businesses.」

「As part of expanding support services for restaurants and creating new businesses, the company is strengthening the delivery and takeaway services transferred from Rakuten effective 1 July. It has also begun expanding the “Gurunavi FineOrder” mobile ordering service, which allows customers to place orders and settle bills at restaurants using their smartphones, with the aim of further improving consumer convenience and increasing customer traffic to restaurants by seamlessly connecting functions such as dine-in reservations and delivery orders.」

「The company’s business policy for the current fiscal year is to steadily restore its core restaurant promotional services by expanding support services tailored to the issues and needs of restaurants operating in a difficult business environment, reviewing sales activities and membership plans and pricing structures, expanding its target customer base and improving customer satisfaction, while also creating new businesses and establishing revenue sources outside restaurants to achieve renewed growth in performance over the medium to long term.」

「The company’s business policy for the current fiscal year is to steadily restore its core restaurant promotional services by expanding support services tailored to the issues and needs of restaurants operating in a difficult business environment, reviewing sales activities and membership plans and pricing structures, expanding its target customer base and improving customer satisfaction, while also creating new businesses and establishing revenue sources outside restaurants to achieve renewed growth in performance over the medium to long term.」

「The company recognizes that its medium-term challenges are to strengthen its management foundation by promoting (1) initiatives aimed at renewed growth in its core restaurant support business, in order first to address the current business environment and prepare for possible future changes in that environment, and (2) the creation of new businesses.」

「In the third quarter, the number of online reservations expanded substantially, owing to demand-stimulation measures such as the “Go To Eat Campaign” and the aforementioned improvements to the “Gurunavi” website. Revenue was 65.7% of the level in the same period of the previous year.」

「The company is participating in the Ministry of Agriculture, Forestry and Fisheries’ “Go to Eat Campaign” as an online restaurant reservation operator. Since the campaign began, the number of restaurants joining the company’s platform has increased, while the number of online reservations has expanded substantially, up 166% year on year for the period from 1 October to 23 October. In addition, the company has decided to collaborate with “LINE Reservations,” which LINE Corporation plans to launch in November. Going forward, it will continue strengthening promotional support for restaurants while building multifaceted management support, including assistance with food-ingredient ordering and procurement, and supporting the food-service industry beyond restaurants, thereby accelerating the recovery in performance and linking it to renewed growth.」

「There were no material changes to the Group’s management policies, management strategies or other related matters during the first quarter of the current fiscal year.」

「To restore performance and achieve renewed growth, we focused on restoring our ability to attract customers to restaurants by strengthening online reservation services, as well as strengthening operational support services aimed at providing multifaceted management support to restaurants, within our core restaurant support business.」

「During the current fiscal year, we have focused on restoring our ability to attract customers through the expansion of online reservations and strengthening operational support aimed at providing multifaceted management support to restaurants, in order to achieve a recovery in performance and renewed growth. Specifically, we have designated the conversion rate (CVR), which indicates the proportion of users who ultimately make an online reservation, as one of our KPIs and are working to improve it by enhancing the user interface (UI) for ease of use, expanding the points awarded to meet consumer needs, and increasing the number of member restaurants that support instant reservations. We are also promoting increased user traffic to our site through our collaboration with Rakuten. As a result of these initiatives, the number of Gurunavi members and online reservations has continued to grow, and signs of a recovery in our ability to attract customers have emerged.」

「Under the substantially revised management and business execution structure introduced in June this year, the Group newly formulated its medium-term business policy for the three fiscal years from the fiscal year ending March 2021 through the fiscal year ending March 2023. Matters concerning the future stated herein are based on the Group’s judgments as of the end of the second quarter of the current fiscal year. The Group positions the three fiscal years from the fiscal year ending March 2021 through the fiscal year ending March 2023 as a period for laying the foundation for the long-term enhancement of corporate value.」

「To recover business performance and achieve renewed growth, during the current fiscal year we are focusing on restoring our ability to drive customers to restaurants by improving the convenience of online reservations and promoting their use. In cooperation with Rakuten, Inc., with which we entered into a capital and business alliance agreement in July 2018, during the first quarter we ran campaigns and special features to promote online reservations using Rakuten Super Points as an incentive. As a result, the growth rate in online reservations remained in the 140% range year on year, and the increase in online reservation commission revenue drove growth in spot revenue.」

「We recognize that this was caused by our delayed response to changes in the business environment, including growing consumer demand for online reservations and points, the diversification of information-search methods, and the diversification of restaurant sales promotion methods, which reduced our ability to drive customers to participating restaurants. In response, we have focused on expanding support services that enable restaurants to conduct customer-attraction activities more efficiently and effectively, thereby building the foundation for the recovery and renewed growth of our restaurant sales promotion services.」

「At our company, amid growing caution toward sales promotion because of labor shortages at restaurants and the diversification of sales promotion methods accompanying changes in consumer behavior, substantial reductions and cancellations and sluggish orders for restaurant sales promotion services continued in the previous fiscal year. Accordingly, from the current fiscal year we have been expanding our methods of reaching users, strengthening operational support that helps address labor shortages at restaurants, and enhancing dialogue with restaurant operators and comprehensive proposals covering management as a whole through the 1,000-person support system. By the third quarter, we had seen improvements in orders and reductions and cancellations.」

「There were no material changes to the Group’s management policies, management strategies or other related matters during the second quarter of the current fiscal year.」

「To improve this situation promptly and return business performance to a renewed growth trajectory, during the current fiscal year we are strengthening operational support that helps address labor shortages, expanding our methods of reaching users, and strengthening communication with restaurant operators.」

「Through the implementation of the medium- to long-term management strategies described above, we aim to expand our business to revenue of ¥55.0 billion in the fiscal year ending March 2021, including ¥45.0 billion from the restaurant support business and ¥10.0 billion from new businesses, and operating profit of approximately ¥10.0 billion.」

「In the cumulative third quarter of the current consolidated fiscal year, spot services expanded steadily, helped by increases in online reservations and the number of restaurants adopting “Gurunavi POS+.” However, stock services declined because reductions in contracted amounts exceeded those of the previous year, against a backdrop including worsening labor shortages at restaurants, and because orders were sluggish. As a result, revenue was ¥27,100 million, down 1.0% year on year.」

「Specifically, in operational support beyond restaurant sales promotion, we began providing the POS register system “Gurunavi POS+” in April, followed by the linked multi-payment service “Gurunavi Pay” in June and the self-order system “Gurunavi POS+ Table Top Order” in August. We are expanding services that improve restaurant operating efficiency and productivity. We also launched the property search website “Gurunavi PRO Restaurant Property Search” for prospective restaurant operators in June. By providing services involved in every aspect of restaurant management, rather than limiting our role to traditional sales promotion support, we aim to support more restaurants.」

「During the current fiscal year under the medium-term management plan, we are strengthening sales promotion support, our core area of the restaurant support business, while advancing support for restaurant diversification and operational support beyond sales promotion. At the same time, we are focusing on realizing new businesses and services, including operational support for food-related industries, the creation of businesses in the extraordinary-experience segment, and the expansion of paid membership services, thereby laying the groundwork for medium- to long-term growth.」

「Through the implementation of the following medium- to long-term management strategies, we aim to expand our business to revenue of ¥55.0 billion in the fiscal year ending March 2021, including ¥45.0 billion from the restaurant support business and ¥10.0 billion from new businesses, and operating profit of approximately ¥10.0 billion.」

「The expansion of sales offices promoted since fiscal 2013 and support for restaurants in preparing to serve visitors to Japan through “Gurunavi Multilingual” produced results. The number of paid participating restaurants increased in both metropolitan and regional areas where sales offices have been established, reaching 60,816 as of the end of December, up 8.8% year on year. In addition, the media value of our “Gurunavi” website has improved through the increased use of online reservations. Driven by growth in sales of restaurant sales promotion services against this backdrop, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥27,365 million, up 7.2% year on year.」

「During the current fiscal year, we are working to further strengthen support for restaurants by expanding the regions in which our services are offered and providing multifaceted support, while focusing on building new businesses and services to achieve medium- to long-term growth. Driven by strong growth in sales of restaurant sales promotion services against this backdrop, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥17,732 million, up 8.4% year on year.」

「During the current fiscal year, we are working to further strengthen sales promotion services for restaurants by expanding the regions in which our services are offered and providing multifaceted support to restaurants. At the same time, we are focusing on building new businesses and services to achieve our medium- to long-term growth.」

「Going forward, in addition to continuing to grow our core restaurant sales promotion support business, we will further strengthen our business foundations and build and promote new businesses that leverage them, thereby achieving medium- to long-term growth for our group.」