Improving Food Service Business Profitability by Rationalizing Unprofitable Stores

「At Italian Tomato Co., Ltd., we worked to increase customer traffic and average spending per customer by introducing seasonal limited-time menus each month. At the same time, we reviewed store operations and promoted renovations.」

「株式会社イタリアントマト worked to increase sales and secure an appropriate level of profitability amid a persistently challenging cost environment caused by higher ingredient prices and labor costs. It sought to raise average customer spending by introducing seasonal menus and high-value-added products. Its store count was 122 (46 company-owned and 76 franchised).」

「At Italian Tomato Co., Ltd., we worked to expand sales and secure appropriate profitability amid continuing severe cost conditions caused by higher food-material prices and labor costs.」

「株式会社イタリアントマト introduced seasonal menus every month, attracting more customers to its stores. It also continued improving store operations and reducing food waste. The company remained operating profitable. Its store count was 126 (47 company-owned and 79 franchised).」

「株式会社イタリアントマト introduced seasonal menus every month using carefully selected seasonal ingredients, attracting more customers to its stores. It also participated in limited-time events and conducted limited-quantity factory-direct sales. At the same time, it continued to thoroughly improve store operations and reduce food waste. As a result, the company maintained operating profitability and steadily increased profit. Its store count was 134 (47 company-owned and 87 franchised).」

「株式会社イタリアントマト introduces seasonal menus every month using ingredients in season, continues improving store operations and reducing food waste, and works to attract more customers by participating in limited-time events. These efforts enabled it to maintain operating profitability.」

「As a result, revenue from the food-service business for the fiscal year was ¥4,232 million, up 9.2% from the previous fiscal year, and the operating loss was ¥14 million, compared with an operating loss of ¥219 million in the previous fiscal year.」

「株式会社イタリアントマト substantially outperformed the same period of the previous year in terms of revenue, as customer traffic recovered following the reclassification of COVID-19 and other factors, supported by the monthly introduction of seasonal menus, events and other measures to bring customers back to its stores. In terms of profitability, the company optimized labor and raw-material costs by adjusting staffing, food procurement and management in line with changes in sales conditions, while working to reduce waste losses. It also developed products and revised prices in response to higher procurement prices for raw materials, utility costs and other expenses, and continued introducing menus with high added value. As a result, profit levels improved substantially. Its store count was 143 (49 company-owned and 94 franchised).」

「株式会社イタリアントマト substantially outperformed the same period of the previous year in terms of revenue, as customer traffic recovered following the reclassification of COVID-19 and other factors, supported by the monthly introduction of seasonal menus, events and other measures to bring customers back to its stores. In terms of profitability, the company optimized labor and raw-material costs by adjusting staffing, food procurement and management in line with changes in sales conditions, while working to reduce waste losses. It also developed products and revised prices in response to higher procurement prices for raw materials, utility costs and other expenses, and continued introducing menus with high added value. As a result, profit levels improved substantially and the company returned to operating profitability.」

「株式会社イタリアントマト substantially outperformed the same period of the previous year in terms of revenue, as customer traffic recovered following the reclassification of COVID-19 and other factors, supported by the monthly introduction of seasonal menus, events and other measures to bring customers back to its stores, and strengthened delivery initiatives. In terms of profitability, the company optimized labor and raw-material costs by adjusting staffing, food procurement and management in line with changes in sales conditions, while working to reduce waste losses. It also developed products and revised prices in response to higher procurement prices for raw materials, utility costs and other expenses, and continued introducing menus with high added value. As a result, profit levels improved substantially and the company returned to operating profitability. Its store count was 148 (50 company-owned and 98 franchised).」

「The company's store count was 149, down 8 stores year on year (51 company-owned and 98 franchised). As a result, revenue from the food-service business for the fiscal year was ¥3,875 million, up 10.0% from the previous fiscal year, and the operating loss was ¥219 million, compared with an operating loss of ¥326 million in the previous fiscal year.」

「The company's store count was 152, down 1 store from the end of the second quarter (51 company-owned and 101 franchised). As a result, revenue from the food-service business for the cumulative nine-month period was ¥2,764 million, up 8.5% year on year, and the operating loss was ¥182 million, compared with an operating loss of ¥294 million in the same period of the previous year.」

「In terms of store expansion, 2 existing Italian Tomato Cafe Junior stores, the Aeon Mall Atsuta store and the Kitaoji store, were renovated and reopened under the new Caffe Italian Tomato brand. In addition, the company opened 1 company-owned store and 2 franchised stores, while consolidating unprofitable stores where a recovery in profitability was unlikely, bringing the total to 153 stores (51 company-owned and 102 franchised).」

「The company also opened 1 company-owned store and 1 franchised store, while proceeding with the consolidation of unprofitable stores where a recovery in profitability was unlikely, bringing the total to 157 stores (53 company-owned and 104 franchised).」

「The company renovated and reopened 5 existing Italian Tomato Cafe Junior stores under the new Caffe Italian Tomato brand and opened a new Italian Tomato Dolceria cake-shop location at Smark Isesaki. In addition, while opening 4 franchised stores overseas, in Hong Kong, the company proceeded with the consolidation of unprofitable stores where a recovery in profitability was unlikely, bringing the total to 157 stores (52 company-owned and 105 franchised).」

「In terms of store expansion, 4 existing Italian Tomato Cafe Junior stores were renovated and reopened under the new Caffe Italian Tomato brand, and a new Italian Tomato Dolceria cake-shop location was opened at Smark Isesaki. In addition, while opening 4 franchised stores overseas, in Hong Kong, the company consolidated unprofitable stores where a recovery in sales was unlikely, bringing the total to 161 stores (54 company-owned and 107 franchised).」

「In terms of store expansion, 4 existing Italian Tomato Cafe Junior stores were renovated and reopened under the new Caffe Italian Tomato brand. In addition, while opening 2 new franchised stores overseas, in Hong Kong, the company consolidated unprofitable stores where a recovery in sales was unlikely, bringing the total to 161 stores (55 company-owned and 106 franchised).」

「In terms of store expansion, the existing Italian Tomato Cafe Junior stores at Aeon Mall Miyazaki and Kawagoe Atre Maruhiro were renovated and reopened under the new Caffe Italian Tomato brand. At the same time, the company consolidated mainly unprofitable stores where a recovery in sales was unlikely, bringing the total to 163 stores (56 company-owned and 107 franchised). As a result, revenue from the food-service business for the cumulative first quarter was ¥871 million, down 34.3% year on year, and the operating loss was ¥103 million, compared with an operating loss of ¥281 million in the same period of the previous year.」

「As a result, revenue from the food-service-related business for the current consolidated fiscal year was ¥3,363 million, down 32.1% from the previous consolidated fiscal year, and the operating loss was ¥863 million, compared with an operating loss of ¥171 million in the previous consolidated fiscal year.」

「As a result, revenue from the food-service-related business for the cumulative third quarter of the current consolidated fiscal year was ¥2,390 million, down 35.3% year on year, and the operating loss was ¥702 million, compared with an operating loss of ¥139 million in the same period of the previous year.」

「As a result, revenue from the food-service-related business for the cumulative second quarter of the current consolidated fiscal year was ¥1,472 million, down 42.5% year on year, and the operating loss was ¥559 million, compared with an operating loss of ¥48 million in the same period of the previous year.」

「In terms of store expansion, the company opened 2 new franchise locations and converted 2 franchise locations to company-operated stores, while proceeding to rationalise unprofitable stores. The total was 175, comprising 58 company-operated stores and 117 franchise stores.」

「In terms of store expansion, the company opened 2 new franchise locations and converted 2 franchise locations to company-operated stores, while proceeding to rationalise unprofitable stores. The total was 185, comprising 64 company-operated stores and 121 franchise stores.」

「In terms of store expansion, the company converted 1 franchise store to a company-operated store and opened 1 overseas location, while proceeding to rationalise unprofitable stores as part of its business recovery efforts. The total number of stores was 187, comprising 65 company-operated stores and 122 franchise stores.」

「株式会社イタリアントマト introduced limited-time menu items, including the spring-inspired spinach cream pasta and chowder cream pasta, as well as the fruit-infused Amaretto Tea Orange Mint. In terms of its stores, it converted 1 franchise location to a company-operated store and proceeded to rationalise unprofitable stores as part of its business recovery efforts, bringing the total to 197, comprising 71 company-operated stores and 126 franchise stores.」

「In terms of store expansion, the company opened 5 new locations while proceeding to close unprofitable stores, bringing the total to 201, comprising 74 company-operated stores and 127 franchise stores.」

「In terms of store expansion, the company opened 4 new locations while proceeding to close unprofitable stores, bringing the total to 216, comprising 76 company-operated stores and 140 franchise stores.」

「In terms of store expansion, the company opened 3 new locations while proceeding to close unprofitable stores, bringing the total to 223, comprising 79 company-operated stores and 144 franchise stores.」

「In terms of store openings, the company opened 3 locations, including PANES HOUSE Aeon Mall Zama in Kanagawa Prefecture, while proceeding to close unprofitable stores, bringing the total to 230, comprising 61 company-operated stores and 169 franchise stores.」

「Overseas, the company opened Italian Tomato Laos Vientiane Centerpoint in Laos, among others. While opening 7 locations in Japan and overseas, it proceeded to close unprofitable stores, bringing the total to 232, comprising 56 company-operated stores and 176 franchise stores.」

「Overseas, the company opened Italian Tomato Laos Vientiane Centerpoint in Laos, among others. While opening 6 locations in Japan and overseas, it proceeded to close unprofitable stores, bringing the total to 236, comprising 55 company-operated stores and 181 franchise stores.」

「In terms of store openings, the company opened Café Junior Toyama Apia in Toyama Prefecture, Cake Shop Aeon Town Nagayo in Nagasaki Prefecture, and Kurami Coffee Konoha Mall Hashimoto in Fukuoka Prefecture, a new format targeting families and offering a wide range of sweets and food, including pancakes, as well as freshly brewed coffee made by grinding beans to order. Overseas, it opened Italian Tomato Laos Vientiane Centerpoint in Laos, among others. While opening 5 locations in Japan and overseas, it proceeded to close unprofitable stores, bringing the total to 241, comprising 55 company-operated stores and 186 franchise stores.」

「In Japan, the company opened Café Junior Toyama Apia in Toyama Prefecture and Cake Shop Aeon Town Nagayo in Nagasaki Prefecture. Overseas, it opened Italian Tomato Laos Vientiane Centerpoint in Laos, among others. While opening 4 locations in Japan and overseas, it proceeded to close unprofitable stores, bringing the total to 245, comprising 55 company-operated stores and 190 franchise stores.」

「While opening 11 locations in Japan and overseas, the company proceeded to close unprofitable stores, bringing the total to 254, comprising 57 company-operated stores and 197 franchise stores.」

「Overseas, the company opened Fari Beur Aeon Cornhill in Hong Kong and Superiore Taipei Unity Times in Taiwan, among others. While opening 9 locations in Japan and overseas, it proceeded to close unprofitable stores, bringing the total to 261, comprising 60 company-operated stores and 201 franchise stores.」

「In Japan, the company opened Café Junior Yumetown Sogawa in Toyama City and PANES HOUSE in Shimokitazawa, Setagaya, a new format offering a wide range of authentic sandwiches, coffee and sweets, as well as bistro dishes and alcoholic beverages in the evening. Overseas, it opened Cake Shop Taipei Unity Times in Taiwan and Fari Beur Aeon Cornhill in Hong Kong, among others. While opening 5 locations in Japan and overseas, it proceeded to close unprofitable stores, bringing the total to 263, comprising 61 company-operated stores and 202 franchise stores.」

「Under a policy of building a foundation for the future, with “Challenge, Innovation and Unity” as its slogan, the company opened the Cake Shop Taipei Unity Times location in Taiwan. At the same time, it proceeded to close unprofitable stores to improve profitability, bringing the total number of stores to 264, comprising 57 company-operated stores and 207 franchise stores.」