Store Portfolio Restructuring Through Openings, Format Changes, and Closures

「As for openings and closures, we opened 12 new company-operated stores and achieved the planned number of openings for the fiscal year. We also closed 7 company-operated stores, 2 contract-operated stores and 1 franchise store (overseas licensed store). As a result, at the end of the fiscal year, we had 57 company-operated stores, including 15 contract-operated stores, and 2 domestic franchise stores, including outsourced-operated stores.」

「Regarding store openings and closures, 10 new stores were opened. In addition, 1 franchise store, an overseas licensed store, was closed. As a result, at the end of the interim consolidated accounting period, there were 64 company-operated stores, including 16 stores operated under management contracts, and 2 domestic franchise stores.」

「Regarding store openings and closures, 2 new stores were opened and 2 stores were converted to different formats. As a result, at the end of the interim consolidated accounting period, there were 57 company-operated stores, including 12 stores operated under management contracts, and 4 franchise stores, comprising 2 overseas stores in Hong Kong and 2 domestic stores.」

「Regarding openings and closures, we newly opened 18 directly operated locations and 2 contract-operated locations. We also closed 1 directly operated location, 1 contract-operated location and 2 franchise locations overseas under licensing arrangements. As a result, at the end of the consolidated fiscal year the number of directly operated locations recovered to 55, including 12 contract-operated locations, while franchise locations, including contract-operated locations, totaled 4, comprising 2 overseas locations in Hong Kong and 2 domestic locations.」

「During the third quarter, we newly opened 3 directly operated locations. As a result, at the end of the third quarter we had 52 directly operated locations, including 10 contract-operated locations, and 6 franchise locations, comprising 4 overseas locations in Hong Kong and Thailand and 2 domestic locations.」

「Regarding openings and closures, we newly opened 1 directly operated location and acquired 10 restaurants in food courts and other facilities in large commercial complexes in the Tokai region through the transfer of contractual positions. We also reopened 焼肉万里 Omiya Suzuran location under a different format. Meanwhile, we closed 1 directly operated location. As a result, at the end of the second quarter we had 50 directly operated locations, including 10 contract-operated locations, and 6 franchise locations, comprising 4 overseas locations in Hong Kong and Thailand and 2 domestic locations.」

「Regarding openings and closures, we closed 1 contract-operated location and newly opened 2 directly operated locations. As a result, at the end of the first quarter we had 40 directly operated locations, including 10 contract-operated locations, and 6 franchise locations, comprising 4 overseas locations in Hong Kong and Thailand and 2 domestic locations.」

「Regarding openings and closures, we closed 8 directly operated locations and 7 contract-operated locations. We also newly opened 5 directly operated locations and 1 franchise location overseas under a licensing arrangement. As a result, at the end of the fiscal year we had 39 directly operated locations, including 11 contract-operated locations, and 6 franchise locations, comprising 4 overseas locations in Hong Kong and Thailand and 2 domestic locations.」

「During the cumulative third quarter, we opened アカマル屋鮮魚店 Mizonokuchi in Kawasaki, Kanagawa, in January 2023. Regarding “東京チカラめし,” in February 2023 we entered into a licensing agreement for a location in Thailand operated by ON AND ON GROUP COMPANY LIMITED, its Thai licensee, and opened the first location in Thailand. Regarding closures, after carefully assessing changes in the impact of the COVID-19 pandemic on each location, we closed 1 directly operated location and 5 contract-operated locations. As a result, at the end of the third quarter we had 38 directly operated locations, including 11 contract-operated locations, and 6 franchise locations, comprising 4 overseas locations in Hong Kong and Thailand and 2 domestic locations.」

「During the cumulative second quarter, we opened アカマル屋鮮魚店 Oyama in Itabashi, Tokyo, in October 2022. Regarding closures, after carefully assessing changes in the impact of the COVID-19 pandemic on each location, we closed 3 directly operated locations. As a result, at the end of the second quarter we had 43 directly operated locations, including 16 contract-operated locations, and 5 franchise locations, comprising 3 overseas locations in Hong Kong and 2 domestic locations.」

「During the cumulative first quarter, we converted 1 “焼肉万里” location in September 2022 to the new format “生もつ焼肉アカマル屋 大宮すずらん通り店.” Regarding closures, after carefully assessing changes in the impact of the COVID-19 pandemic on each location, we closed 2 directly operated locations and 2 contract-operated locations.」

「During the consolidated fiscal year, we opened, under the “アカマル屋” format, Monzen-Nakacho in Koto, Tokyo, in October 2021, a location with an attached fresh-fish store in Saitama, Saitama, in April 2022, Shinkoiwa in Katsushika, Tokyo, in May 2022, and Asagaya in Suginami, Tokyo, in June 2022. Under new formats, we opened “宮益坂下 酒場” in Shibuya, Tokyo, in March 2022, and under the contract-operated business we opened 3 locations. In addition, under a licensing agreement for “東京チカラめし” locations in Hong Kong, we opened the second location in September 2021 and the third location in December of the same year. Regarding closures, after carefully assessing changes in the impact of the COVID-19 pandemic on each location, we closed 5 contract-operated locations. In addition, 2 franchise locations closed.」

「During the cumulative third quarter, we opened “アカマル屋” Monzen-Nakacho in Koto, Tokyo, in October 2021, “宮益坂下 酒場,” a new format, in Shibuya, Tokyo, in March 2022, and 2 locations in July 2021 through our contract-operated business, which requires no major fixed investment. In addition, under a licensing agreement for “東京チカラめし” locations in Hong Kong, we opened the second location in September 2021 and the third location in December of the same year. Regarding closures, after carefully assessing changes in the impact of the COVID-19 pandemic on each location, we closed 1 contract-operated location and 2 franchise locations. As a result, at the end of the third quarter we had 48 directly operated locations, including 18 contract-operated locations, and 4 franchise locations.」

「During the cumulative second quarter, we carefully assessed changes in the impact of the COVID-19 pandemic on each location and closed 3 contract-operated locations. Meanwhile, we opened 1 contract-operated location, which requires no major investment. As a result, at the end of the second quarter we had 48 directly operated locations, including 19 contract-operated locations, and 6 franchise locations.」

「During the cumulative first quarter, we carefully assessed changes in the impact of the COVID-19 pandemic on each location and closed 2 contract-operated locations. Meanwhile, we opened 2 contract-operated locations, which require no major investment. As a result, at the end of the first quarter we had 29 directly operated locations, 21 contract-operated locations and 5 franchise locations.」

「During the cumulative third quarter, we carefully assessed changes in the impact of the COVID-19 pandemic on each location and closed 31 directly operated locations and 2 contract-operated locations, primarily those for which we determined that recovering store profitability would take a considerable amount of time. In addition, 4 franchise locations closed. With cash flow as our top priority, we temporarily deferred the new openings originally planned for existing formats. Meanwhile, in the contract-operated business, which requires no major investment, we newly undertook the operation of 3 restaurants attached to government and other facilities. Under new formats, we opened 3 locations through the seafood business project, including 2 format conversions.」

「During the cumulative second quarter, we carefully assessed changes in the impact of the COVID-19 pandemic on each location and closed 25 directly operated locations and 2 contract-operated locations, primarily those for which we determined that recovering store profitability would take a considerable amount of time. In addition, 1 franchise location closed. With cash flow as our top priority, we temporarily deferred the new openings originally planned for existing formats. Meanwhile, in the contract-operated business, which requires no major investment, we newly undertook the operation of 3 restaurants attached to government and other facilities. Under new formats, we opened 2 locations through the seafood business project, including 1 format conversion.」

「During the cumulative first quarter, we closed 19 directly operated locations and 2 contract-operated locations. In addition, 1 franchise location closed. In the contract-operated business, we newly undertook the operation of 3 restaurants attached to government and other facilities.」

「We closed 40 directly operated locations. We also newly opened 1 “アカマル屋” location and 1 “焼肉万里” location, and newly undertook the operation of 15 restaurants in bathing facilities and government facilities through our contract-operated business, which requires no major investment. As a result, at the end of the fiscal year we had 65 directly operated locations, 15 contract-operated locations and 8 franchise locations.」

「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.”」

「During the second quarter, we closed 6 directly operated locations and 1 franchise location that we determined would be difficult to keep profitable due to changes in their trading areas and other factors. We decided to defer new openings, while newly undertaking the operation of 1 restaurant attached to a bathing facility through our contract-operated business, which requires no major investment.」

「With respect to store openings and closures, we opened 1 new 「アカマル屋」 store, which had been refined as a labor-saving model store and qualitatively transformed in the previous fiscal year, while closing 1 store that we judged would be difficult to operate profitably due to changes in its trading area and other factors.」

「Regarding new openings, in January we opened the Teradacho location of “東京チカラめし” in Osaka as a franchise location. In February, we changed the format of 1 “東京チカラめし” location to “アカマル屋.” In the same month, we changed 1 “月の雫” location to “東方見聞録,” 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.」

「Regarding openings, we newly opened 2 locations of our core “金の蔵” format, 1 location of “カフェ＆ダイニングKinKura,” incorporating a café-style format, and 1 location of “焼肉万里,” which has been performing steadily. Regarding closures, we closed a total of 11 locations whose contracts expired due to redevelopment or which we determined would be difficult to keep profitable because of changes in their trading areas and other factors.」

「We changed the formats of and opened 4 locations under “金の蔵” and “アカマル屋.” Meanwhile, we closed 7 locations whose contracts expired due to redevelopment or which we determined would be difficult to make profitable, working to build a sound 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.」

「During the fiscal year, among our directly operated locations, we opened 2 “アカマル屋” locations, 1 soba bar location of “ゑびや” as a brand addressing new market needs, and 1 “バリバリ鶏” location. Meanwhile, we closed 4 locations due to station-front redevelopment, contract expirations and other factors.」

「“ゑびや,” a soba bar opened in Omiya as a new format in August 2016, has been well received by customers and is performing steadily. To test the format’s fit with new markets, we opened a location in Ikebukuro in January this year and launched “ゴールデン金の蔵,” a yakitori concept, to meet the needs of the generation that previously patronized “金の蔵.” We also closed 1 unprofitable location to build a sound portfolio of formats and stores.」

「We opened 2 locations to expand the market for “アカマル屋,” and 1 location each for “ゑびや” and “バリバリ鶏” to test their fit with new markets. We also changed the formats of 3 locations to better meet customer needs. In addition, we closed 1 unprofitable location.」

「Regarding store development, we opened 2 new locations and changed the format of 1 location.」

「Regarding openings and closures, we opened 12 new locations, converted 3 locations to different formats, and closed 9 locations due to contract expirations and other factors.」