Selecting regions with strong food-delivery demand and acquiring merchant partners

「Through expanding the lineup of attractive merchants for users and delivering a high-quality user experience」

「The company will steadily improve the service experience, including by expanding the merchant lineup, improving the accuracy of waiting-time information and shortening delivery times.」

「For merchants, the company strengthened its consulting structure and ran weekly campaigns with selected merchants.」

「The company accelerated the service rollout and newly launched services in 22 prefectures during the current period. The service area expanded to all 47 prefectures, enabling Sharing Delivery® to achieve nationwide coverage within 5 years of its full-scale launch in 2017. In addition, the expansion of the Sharing Delivery® service accelerated the increase in merchants.」

「As the Sharing Delivery® service expanded, the increase in merchants accelerated, and the number of restaurants offering Sharing Delivery® increased to approximately 6.6 times the level in the same period of the previous year. In addition to increasing the number of merchants, the company worked to strengthen consulting aimed at increasing merchant sales by establishing sales offices in major cities.」

「As the Sharing Delivery® service expanded, the increase in merchants accelerated, and the number of restaurants using Sharing Delivery® increased to approximately 7.5 times the level in the same period of the previous year.」

「The company viewed restaurants' entry into delivery as a change in attitudes toward restaurant management rather than a temporary development, and actively worked to expand its merchant base. As a result, many restaurants joined, ranging from well-known chains with large numbers of outlets, such as McDonald's, to locally focused restaurants.」

「Inquiries from restaurants heavily affected by restrictions on going out increased sharply, resulting in a significant increase in new memberships among chains and small and medium-sized restaurants that did not offer their own delivery service.」

「The company has acquired restaurants in categories underserved in each region.」

「Regarding merchant expansion, the company is expanding categories suitable for everyday meals, including Ootoya Gohandokoro and Hotto Motto.」

「As the service area expanded, popular local restaurants and major popular chains that did not offer their own delivery service joined one after another. During the consolidated fiscal year, Kourakuen and Cocos, among others, newly joined.」

「In accelerating the rollout of the Sharing Delivery® business, the service area continued to expand steadily, including entry into Hokkaido in April 2019, reaching 161 locations as of the end of May 2019. During the third quarter consolidated accounting period, major chains such as Sushiro and popular local restaurants also newly joined.」

「As part of efforts to accelerate the rollout of the key Sharing Delivery® business, popular chains including Hidaka-ya, Uobei and Miyamoto Munashi newly joined during the second quarter accounting period, while the number of popular local restaurants also increased steadily. To expand the Sharing Delivery® service area, the company promoted the development of a profitable model for delivery locations and newly entered Kyoto, Nara and Hiroshima prefectures. In Fukuyama, Hiroshima Prefecture, a locally based transport company joined as a new delivery partner. As a result, the number of delivery locations reached 104 as of the end of February 2019.」

「To accelerate the rollout of the key Sharing Delivery® business, major popular chains such as Kappa Sushi, which did not offer their own delivery service, and popular local restaurants joined Demae-can. In addition, the service was launched in northern Kanto in November 2018, and operations at delivery locations were commenced by Japan Best Rescue System Co., Ltd. as a new collaboration partner. As a result, the total number of delivery locations reached 78 as of the end of November 2018.」

「The provision of delivery outsourcing services led to a steady increase in new memberships among popular restaurants in each region that had not previously offered delivery.」

「Delivery outsourcing services were launched in Nagoya, Aichi Prefecture, the first location in the Tokai region, and the total number of locations expanded to 33 as of the end of May 2018. During the third quarter consolidated accounting period, new memberships among popular restaurants in each area continued to increase steadily, in addition to major chains such as Lotteria and Denny's.」

「Under the initiative to develop stores for market expansion, the company stepped up the expansion of Sharing Delivery®. During the second quarter, major popular chains such as Ringer Hut and Marugame Seimen, as well as popular local stores in new service areas, joined the Demae-can partner-store network, bringing the number of partner stores above 16,000 on 31 January 2018. Sharing Delivery® hubs centered on the newspaper retailer ASA also expanded steadily, reaching a total of 23 as of the end of February 2018.」

「Under the initiative to develop stores for market expansion, the promotion of Sharing Delivery™ brought major popular chains, such as Gyoza no Ohsho and Tendon Tenya, which had not previously offered delivery, as well as popular local stores, into the Demae-can partner-store network. Sharing Delivery™ hubs centered on ASA also expanded steadily, reaching a total of 17 as of the end of November.」

「As part of efforts toward the sustainable growth of the Demae-can business, the first store opened in March in Sagamihara, Sagamihara, Kanagawa Prefecture, through collaboration with ASA, the newspaper retailers that are business partners of The Asahi Shimbun Company, with which the company entered into a business partnership agreement on 15 December of the previous year, to expand community-based delivery locations. The second collaborative store opened in May in Machida, Machida, Tokyo.」

「By combining the sales base and delivery network of ASA, which operates a locally focused newspaper-retailer model, with Demae-can's database on delivery demand, one of the largest in Japan, the company will provide delivery services based on demand in each region.」

「The company's selection of areas with strong demand for food delivery and merchant development as part of its regional rollout」

「The company is responsible for selecting areas with strong demand for food delivery and acquiring merchants as part of the regional rollout.」