Difficulty in operating the business due to COVID-19

「If a major abnormal event, such as the spread of COVID-19 or other infectious diseases and the continued reluctance of customers to go out due to declarations of a state of emergency issued as a countermeasure, occurs on a scale exceeding our assumptions and makes business operations difficult, or if the spread of infectious diseases and other factors make it difficult to continue operations due to insufficient availability of customers or employees, our group's operating results and financial position may be materially affected.」

「The normalization of economic activity progressed following the recovery in foot traffic and inbound demand resulting from the reclassification of COVID-19 as a Class 5 disease and the easing of various activity restrictions, and personal consumption showed a gradual recovery trend.」

「The normalization of economic activity progressed following the recovery in foot traffic and inbound demand resulting from the reclassification of COVID-19 as a Class 5 disease and the easing of various activity restrictions, and personal consumption showed a gradual recovery trend.」

「Border control measures on entry into Japan implemented as COVID-19 countermeasures were eased from 29 April, and the legal classification of COVID-19 was changed to Class 5 on 8 May. Following the easing of various restrictions, there were signs of progress toward the normalization of economic activity.」

「In the restaurant industry, personal consumption showed some signs of recovery as the May Golden Week holidays were held without activity restrictions. However, due to the impact of the seventh and eighth waves, demand during the summer holidays and Obon period, normally a peak season, and demand for large-group banquets in December declined substantially. In addition, the outlook for soaring raw material prices and utility costs remained uncertain, and the operating environment continued to be extremely difficult.」

「In the restaurant industry, personal consumption showed some signs of recovery as the May Golden Week holidays were held without activity restrictions. However, due to the impact of the seventh and eighth waves, demand during the summer holidays and Obon period, normally a peak season, and demand for large-group banquets in December declined substantially. In addition, the outlook for soaring raw material prices and utility costs remained uncertain, and the operating environment continued to be extremely difficult.」

「In the restaurant industry, personal consumption showed some signs of recovery as the May Golden Week holidays were held without activity restrictions for the first time in 3 years. However, demand during the summer holidays and the Obon period, normally a peak season, declined substantially due to the impact of the seventh wave, while the outlook for soaring raw material prices and utility costs remained uncertain, and the operating environment continued to be extremely difficult.」

「In the restaurant industry, requests from the government and local authorities to suspend operations and alcohol service were lifted, and personal consumption showed some signs of recovery as the May Golden Week holidays were held without activity restrictions for the first time in 3 years. However, changing customer behavior also had a significant impact, including a pronounced decline in demand for second-party visits and large banquets at izakayas, and total sales did not recover to pre-pandemic levels.」

「In the restaurant industry, restrictions on operations and alcohol service and requests to limit dining to small groups imposed by the government and local authorities as COVID-19 countermeasures had a significant impact throughout the fiscal year. Demand for large-group banquets during peak periods and late-night second-party visits declined substantially in particular.」

「In the restaurant industry, the lifting of the state of emergency and priority preventive measures, and the resulting removal of requests from the government and local authorities to suspend operations and alcohol service, led to signs of a partial recovery in personal consumption. However, the industry remains in an extremely difficult situation due to concerns over the spread of new variant strains and soaring resource prices.」

「The restaurant industry also remained in an extremely difficult situation, as restrictions on business operations and alcohol service and requests to limit dining to small groups imposed by the government and local authorities as COVID-19 countermeasures, along with the continued prevalence of telework and consumers refraining from dining out, had a very significant impact, including an increase in takeout and delivery.」

「The restaurant industry continued to face extremely severe conditions due to the major impact of requests from the national and local governments to refrain from operating businesses, requests to limit dining to small groups, the expansion of telework, and consumers' continued reluctance to dine out, which increased demand for takeout and delivery. In addition, during the state of emergency declared in late April, requests were added to refrain from serving alcoholic beverages. As a result, exceptionally severe conditions continued, as in the previous consolidated fiscal year.」

「The restaurant industry continued to face extremely severe conditions due to the major impact of requests from the national and local governments to refrain from operating businesses, requests to limit dining to small groups, the expansion of telework, and the disappearance of inbound demand. Under these circumstances, our group continued group-wide cost-reduction initiatives, including infection-prevention measures at restaurants and negotiations to reduce restaurant rents. However, following renewed requests from certain local governments from late November onward to refrain from operating businesses and going out, as well as requests to refrain from traveling to and from areas where infections were spreading, demand for December parties, normally the peak season, declined sharply, particularly in the metropolitan-area izakaya format, becoming a factor in the substantial deterioration in revenue during the cumulative third quarter of the current consolidated fiscal year.」

「The impact on the restaurant industry of requests from the national and local governments to refrain from operating businesses, requests to limit dining to small groups, the expansion of telework, and the disappearance of inbound demand was extremely significant, and the exceptionally severe conditions continued. Under these circumstances, our group made the prevention of infection among customers, business partners, employees, and their families its top priority. In response to requests from local governments and others, each restaurant shortened its operating hours or temporarily closed, while thoroughly implementing hygiene and staff health management measures, including handwashing, gargling, mask wearing, and hand disinfection. The group also continued cost-reduction initiatives, including negotiations to reduce restaurant rents. However, in addition to temporary closures at many restaurants during the state of emergency in April and May, the renewed increase in infections in Japan from July onward further strengthened the tendency to refrain from dining out, causing a substantial deterioration in revenue during the cumulative second quarter of the current consolidated fiscal year.」

「Under these circumstances, our group made the prevention of infection among customers, business partners, employees, and their families its top priority. In response to requests from local governments and others, each restaurant shortened its operating hours or temporarily closed. During operations, we thoroughly implemented hygiene and staff health management measures, including handwashing, gargling, mask wearing, and hand disinfection by employees, as well as installing partitions between counter seats in conveyor-belt sushi restaurants.」

「If a major abnormal event, such as the spread of COVID-19 or other infectious diseases and the continued reluctance of customers to go out due to declarations of a state of emergency issued as a countermeasure, occurs on a scale exceeding our assumptions and makes business operations difficult, or if the spread of infectious diseases and other factors make it difficult to continue operations due to insufficient availability of customers or employees, our group's operating results and financial position may be materially affected.」