Strengthening existing stores through format conversions and renovations

「To increase the value of existing stores, the Group will renovate stores that have been operating for a certain period, taking account of the characteristics of their trade areas, and relocate stores in response to changes in their surrounding market environment. It will also shift away from prioritising the number of seats, instead optimising turnover efficiency and capacity by expanding 2-person seating, large counters and bench seating.」

「既存店舗の価値向上に向け、開業から一定期間が経過した店舗については、商圏特性を踏まえ改装を進めるほか、商圏環境の変化に対応したリロケーションを実施してまいります。」

「During the first six months of the fiscal year, the number of directly operated stores in the Group was 289. While 6 stores were closed due to contract expirations, the rationalisation of unprofitable stores and renovations, 2 new stores were opened and 3 stores were acquired.」

「Capital expenditure during the fiscal year totalled ¥593 million, focused mainly on investments in new store openings, format conversions and renovations of existing stores in the food-service business.」

「Capital expenditure during the fiscal year totalled ¥365 million, focused mainly on investments in new store openings, format conversions and renovations of existing stores in the food-service business.」

「In the core yakiniku business, the Group is expanding the number of 「肉匠坂井」 existing stores using serving robots, which are currently being tested, and is also testing robot vacuum cleaners and assessing their potential introduction.」

「Amid expectations that difficulties in recruiting personnel will continue in the core yakiniku business, the Group is testing robot vacuum cleaners at 2 existing 「肉匠坂井」 and 「七輪坂井」 stores as part of its further store digitalisation initiatives.」

「Capital expenditure during the fiscal year totalled ¥363 million, focused mainly on investments in new store openings, format conversions and renovations of existing stores in the food-service business.」

「The Group has also continued its store digitalisation initiatives. In its core yakiniku business, it is expanding the number of 「肉匠坂井」 existing stores using serving robots, which are currently being tested. In the daily-meal and fast-food businesses, it is also testing a self-ordering system that allows customers to place orders from their smartphones at some 「おむらいす亭」 and 「長崎ちゃんめん」 stores.」

「The Group will actively introduce systems to improve productivity, including expanding the installation of touch-panel ordering systems and pursuing cashless operations, while working to create stores that are easier for employees to work in and customers to use.」

「During the first nine months of the fiscal year, the number of directly operated stores in the Group was 436. Although 25 stores were closed due to contract expirations and the rationalisation of unprofitable stores and 1 store was transferred to a franchise owner, 27 new or converted stores were opened, comprising 9 new stores and format conversions at 7 yakiniku stores, 6 fast-food stores, 1 sushi store, 1 restaurant store and 3 izakaya stores. The number of stores operated by subsidiaries also increased following the creation of new subsidiaries through M&A, and increased by 13 through store acquisitions. In addition, 3 stores were acquired from franchise locations.」

「Opening of 21 new or converted stores (8 new stores; format conversions: 4 yakiniku stores, 4 fast-food stores, 1 sushi store, 1 restaurant store and 3 izakaya stores)」

「During the first three months of the fiscal year, the number of directly operated stores in the Group was 428. Although 12 stores were closed due to contract expirations and the rationalisation of unprofitable stores, 8 stores underwent format conversions, comprising 2 yakiniku stores, 4 fast-food stores, 1 sushi store and 1 restaurant store, and 3 new stores were opened, comprising 1 fast-food store, 1 restaurant store and 1 store acquired from a franchise location.」

「The Group will continue working to maintain and improve these formats through store renovations, higher product quality and better customer-focused service.」

「In the other businesses, amid continued weak performance in the izakaya format, the Group undertook various initiatives to improve the format, including efforts to improve product quality and services from the customer's perspective. At the same time, it closed unprofitable stores and worked to improve profitability for the next fiscal year.」

「At Heiroku Sushi in particular, the Group renovated 3 stores, including the Tagajo Nishiten store in August, and continued initiatives to differentiate its stores from competitors by staging distinctive events such as tuna-cutting shows, drawing on the skills of its sushi chefs, and offering locally sourced ingredients.」

「At existing stores, the Group installed tanks for live fish and shellfish and provided fresh ingredients together with fresh fish sourced from the Ishinomaki market. Heiroku Sushi Fukushima Yanome store was reopened on 26 April 2018 as part of the effort to create a tastier, renewed Heiroku Sushi.」

「In the sushi format of the food-service business, the Group has continued to thoroughly review QSC and strengthen improvement initiatives. In July, it reopened Heiroku Sushi Akishidain store, the second Heiroku Sushi store to be renovated during the fiscal year. The store was converted from the conventional Heiroku Sushi format to an open-lane design, creating a more spacious interior and focusing on the sale of fresh fish from Ishinomaki and live shellfish. The renovation has created a store where customers can enjoy the excitement of sushi being prepared in front of them, with a closer connection to the sushi chefs.」

「Across the food-service business, the Group has continued to thoroughly review QSC and strengthen improvement initiatives.」

「The Group has worked to improve store formats, including conversions to formats with strong brand equity, store renovations and menu enhancements, while strengthening the development of franchise locations for these formats.」

「In Hokkaido, the Group reopened Heiroku Sushi Hokkaido Sunpiazza after completely renewing its interior and exterior, and acquired the operation of the gourmet conveyor-belt sushi restaurant 「匠の回転寿司○海」.」

「The Group has also worked to improve customer satisfaction, including by installing touch panels at every seat in some stores.」

「Against this backdrop, the Group has worked to improve store formats, including store renovations and menu enhancements, while leveraging the name recognition of formats with strong brand equity, alongside efforts to strengthen the provision of products that customers can enjoy with confidence and peace of mind.」

「② Strengthening existing stores through format conversions and renovations」