Stable Profit Generation at Existing Stores

「Some of the new stores that should have contributed to the recovery in performance, particularly those opened in the first half of the fiscal year ending June 2026, were slow to ramp up because severe labor shortages prevented the placement of suitable personnel in suitable positions, and because of changes in the business environment around their locations. They became unprofitable stores after falling substantially short of their initial sales and profit plans.」

「As a result of these initiatives, sales in the food-service business gradually recovered from 2023 onward as the impact of COVID-19 gradually eased, and the business unit has continued to report stable profits.」

「As a result of these initiatives, sales in the food-service segment gradually recovered from 2023 onward as the impact of COVID-19 gradually eased, and the business unit returned to profitability.」

「Through the SANKO fleet initiative, we are developing the business into a brand that achieves both cost control despite soaring fish prices and customer satisfaction, as well as stability and improvement in the livelihoods of fishermen, by communicating the intrinsic value of fish.」

「In the food-service business, Akamaruya, whose performance has recovered significantly, continues to grow as a brand that matches customer needs changed by the COVID-19 pandemic, with existing-store sales continuing to exceed 100% of the corresponding month in 2019, before COVID-19.」

「As a result of these initiatives, sales in the food-service segment gradually recovered from the second quarter onward as the impact of COVID-19 gradually eased, and the business unit returned to profitability.」

「Akamaruya consists of small and medium-sized stores located in suburban areas and has received strong customer support even during the COVID-19 pandemic, with existing-store sales exceeding 100% of the corresponding month in 2019, before the pandemic. In addition, Akamaruya is a brand with high investment efficiency. We will continue to refine the brand and actively open stores after assessing the trade area and site conditions.」

「Akamaruya consists of small and medium-sized stores located in suburban areas and has received strong customer support even during the COVID-19 pandemic, with existing-store sales exceeding 100% of the corresponding month in 2019, before the pandemic, as shown in the table below.」

「Akamaruya consists of small and medium-sized stores located in suburban areas and has received strong customer support even during the COVID-19 pandemic, with existing-store sales exceeding 100% of the corresponding month in 2019, before the pandemic.」

「Akamaruya and Yakiniku Banri are located in suburban areas and have continued to receive a certain level of customer support even during the COVID-19 pandemic. Akamaruya in particular is a high-efficiency, high-profitability brand. We opened the Monzen-Nakacho store in Koto-ku, Tokyo, in October 2021, a store with an adjoining fresh fish shop in Saitama, Saitama, in April 2022, the Shinkoiwa store in Katsushika-ku, Tokyo, in May 2022, and the Asagaya store in Suginami-ku, Tokyo, in June 2022.」

「Akamaruya and Yakiniku Banri are located in suburban areas and have continued to receive a certain level of customer support even during the COVID-19 pandemic. Akamaruya in particular is a low-investment, high-profitability brand, and we opened the Monzen-Nakacho store in Koto-ku, Tokyo, in October 2021.」

「Akamaruya in particular is a low-investment, high-efficiency brand. We will continue to refine the brand and open stores carefully after assessing the trade area and site conditions.」

「Recognising that preventing cash outflows was an immediate priority, we closed 5 unprofitable stores during the third quarter accounting period and decided to close 1 store in April 2021. As a result of these measures, stores supported by customers, mainly suburban stores and stores in specific formats such as Akamaruya and Yakiniku Banri, remain as stores capable of securing stable profits. By improving customer satisfaction at these stores, we will work to improve operating results as quickly as possible.」

「Recognising that preventing cash outflows was an immediate priority, we closed 6 unprofitable stores during the second quarter accounting period. In addition, assuming that the broad impact of the COVID-19 pandemic on the economy and corporate activity would continue for a certain period, we decided to close a further 2 stores between January and February 2021 where a considerable amount of time would be required to restore store profitability.」

「Recognising that preventing cash outflows was an immediate priority, we closed 21 unprofitable stores during the first quarter accounting period. In addition, assuming that the broad impact of the COVID-19 pandemic on the economy and corporate activity would continue for a certain period, we decided to close a further 5 stores between September and October 2020 where a considerable amount of time would be required to restore store profitability.」

「By September 2020, we had decided to close 55 stores where a considerable amount of time would be required to restore store profitability.」

「In the fiscal year ending June 2020, we decided to close more than 40 stores, focusing not only on stores expected to become unprofitable, but also on stores requiring considerable time to improve their results, stores with high sales-to-rent ratios, and large stores and stores on upper floors. At stores targeted for enhancement that will remain in operation, we prioritised assigning excellent personnel and driving in-store reforms. After comparing profitability, we narrowed down the stores covered and carried out low-cost renovations that made maximum use of existing assets, contributing to improved earning power.」

「While proceeding with store closures, we will prioritise assigning excellent personnel to priority stores and drive in-store reforms. After comparing profitability, we will narrow down the stores covered, carry out low-cost renovations that make maximum use of existing assets, and improve earning power.」

「While restructuring its format portfolio, the company pursued various initiatives to build a highly productive and robust operating foundation.」

「As a result of these initiatives, some sales at izakaya stores have recovered and signs of gradual improvement have begun to emerge, including a 50% increase in inbound sales compared with the cumulative total for the same period of the previous year, as the impact of COVID-19 has gradually eased. However, sales at izakaya stores have been trending lower year on year because of declining alcohol consumption among younger people and a reduction in both the opportunities for and scale of group bookings by companies for year-end and New Year parties. In addition, investments and expenses have been incurred ahead of the resulting benefits as we continued to renovate stores and repair equipment, as we had done in the previous fiscal year.」

「At izakaya stores, mainly those operating under the Kin no Kura brand, demand for group banquets from companies and other organisations has fallen sharply, while investments and expenses related to structural reform have been incurred ahead of the resulting benefits.」

「The main factors were declines in existing-store sales, store closures and failure to meet the store-opening plan.」

「For existing stores, we changed the business formats of and opened 4 stores under “金の蔵” and “アカマル屋,” which have stable earnings and strong growth potential, respectively, to adapt to market changes and improve the profitability of individual stores.」

「Through these measures, we worked to build a stronger foundation by improving the profitability of existing stores.」

「We also implemented various measures focused on the efficiency and profitability of each individual store, including shortening late-night operating hours at some stores and trialling self-service all-you-can-drink offerings.」

「Under these circumstances, we established the following objectives and advanced initiatives in response to changes in the market environment: “securing stable profits at existing stores through various initiatives and business-format changes,” “new アカマル屋 openings and their early stabilization,” “uncovering new needs through new-format development,” and “developing next-generation personnel.”」