Concentration of Resources on Core Brands and Restructuring of Business Formats and Stores

「We will work to improve our earnings structure by partially withdrawing from or substantially scaling back fishing and the Numazu fish-processing business, which carry earnings volatility risk, and concentrating management resources on areas where profits can be reliably expected, including store expansion that provides strong outlets for fishery resources.」

「In addition, we took over and began operating 9 restaurants in food courts and other locations in large commercial facilities in the Tokai region. Although temporary store-opening expenses were incurred when the businesses were taken over, we will accumulate expertise in operating restaurants within large commercial facilities, with a view to actively opening more stores in the future. In April 2024, one of the stores we took over was renovated and reopened as Maguro no Kaisho, a seafood rice-bowl restaurant, in the food court of AEON Mall Hamamatsu Ichino.」

「In addition, from December 2023, we took over and began operating 10 restaurants serving fresh fish caught that morning and delivered directly from the production area, as well as seafood dishes, in food courts and other locations in large commercial facilities in the Tokai region. Although temporary store-opening expenses were incurred when the businesses were taken over, we will deepen our relationships with operators of large commercial facilities and accumulate expertise in operating restaurants within such facilities, with a view to actively opening more stores in the future.」

「We recognise that our management challenge is to replace the sales lost from stores we strategically withdrew from during the COVID-19 pandemic. Alongside building a seafood supply chain, opening stores that make maximum use of it, including the Akamaruya Fresh Fish Shop, will contribute to the recovery of the Company's business performance.」

「For restaurants such as Kin no Kura that primarily serve alcoholic beverages, we completed the transformation of our business structure by undertaking large-scale closures and format conversions, mainly of high-fixed-cost stores located in large premises, upper floors and basements.」

「We also developed the Akamaruya Fresh Fish Shop. The Akamaruya Fresh Fish Shop is a casual izakaya with an adjoining fresh fish shop. Since opening its first location in Omiya in April 2022, it has become a popular new-concept izakaya, offering fresh fish caught that morning and delivered from Numazu, as well as tuna-cutting demonstrations conducted in cooperation with SANKO Kaisho in Hamamatsu and Sogo Foods in Toyosu.」

「Akamaruya Fresh Fish is a popular izakaya with an attached fresh-fish shop. Since opening its first location in Omiya in April 2022, it has been a busy new-concept izakaya, serving fresh fish caught that morning in Numazu and holding tuna-cutting shows in collaboration with SANKO Kaisho in Hamamatsu and Sōgō Shokuhin in Toyosu.」

「We expanded our contract operations business for food-service facilities, primarily at government offices and hot-spring spa facilities, which do not require substantial investment in fixed assets. We also worked to expand our prepared-food business, including boxed meals, and our e-commerce mail-order business, including our company-operated website Hitoma (https://hitoma-tuhan.com). As a result, 19 of our 48 directly operated physical stores were contract-operated stores at the end of the second quarter, accounting for approximately 40%.」

「We expanded our contract operations business for food-service facilities, primarily at government offices and hot-spring spa facilities, which do not require substantial fixed investment. We also worked to expand our prepared-food business, including boxed meals, and our e-commerce mail-order business, including our company-operated website Hitoma (https://hitoma-tuhan.com).」

「As a result of these measures, stores supported by customers, primarily suburban locations and specific formats such as Akamaruya, Yakiniku Banri and Tokyo Chikara Meshi, remained as stores capable of generating stable profits. By improving customer satisfaction at these stores, we will work to improve operating earnings and expenses as quickly as possible.」

「As a result of these measures, stores supported by customers, primarily suburban locations and specific formats such as Akamaruya, Yakiniku Banri and Tokyo Chikara Meshi, remained as stores capable of generating stable profits. By improving customer satisfaction at these stores, we will work to improve operating earnings and expenses as quickly as possible.」

「As a result of these measures, stores supported by customers, primarily suburban locations and specific formats such as Akamaruya, Yakiniku Banri and Tokyo Chikara Meshi, remained as stores capable of generating stable profits. By improving customer satisfaction at these stores, we will work to improve operating earnings and expenses as quickly as possible.」

「During the third quarter, we closed 8 directly operated locations that we determined would be difficult to keep profitable due to changes in their trading areas and other factors. We also opened 1 “焼肉万里” location and newly undertook the operation of 2 restaurants attached to bathing facilities through our contract-operated business, which requires no major investment. Regarding format conversions, we converted 1 “金の蔵” location to “東京おばんざい酒場けけ.”」

「We advanced store closures and format changes, including changing 1 Kin no Kura store to Yakiniku Banri, 1 Tokyo Chikara Meshi store to a ramen format, and 1 Baribari-dori store and 1 Tsuki no Shizuku store to Tōhō Kenbunroku.」

「We divided part of a Kin no Kura location and opened Shabu-Shabu Dan, a destination-oriented specialty format targeting families. We also formed a business alliance with 株式会社甲羅 and sought to restore customer traffic by opening Akakara, which is highly popular not only with families but also with students, under a dual-brand format with Kin no Kura.」

「In February, we changed 1 Tokyo Chikara Meshi store to Akamaruya. In the same month, we changed 1 Tsuki no Shizuku store to Tōhō Kenbunroku, a format suited to the current location and market characteristics.」

「As part of our business-structure reform, we closed 12 underperforming locations and opened 1 location.」

「We newly opened 2 stores in our core format Kin no Kura, 1 Café & Dining KinKura store incorporating a café-style concept, and 1 Yakiniku Banri store, which had been performing steadily. We closed a total of 11 stores, including locations whose lease terms expired as a result of redevelopment and locations where we determined that securing profits had become difficult due to changes in their trading areas.」

「Against this backdrop, we continued to pursue the reorganisation of our business formats and stores as part of our business structural reform, as in the previous fiscal year. For existing stores, we changed business formats and opened 4 stores. Meanwhile, we closed 7 stores and worked to build a sound business-format portfolio.」

「As part of our business structure reforms, we continued to consolidate and reorganize existing brands through the reorganization of business formats and stores, as in the previous fiscal year.」

「As the first step in transforming our business structure, we actively concentrated resources on Kin no Kura and Tsuki no Shizuku, which were expected to generate stable earnings, and Akamaruya, which was expected to deliver future growth. We also pursued the reorganisation of business formats and stores, including the integration and consolidation of locations from Tōhō Kenbunroku into Kin no Kura and Tsuki no Shizuku.」