Development and Opening of New Food Service Formats

「In the Overseas business, the Company opened Osaka Ohsho's first North American restaurant, "OSAKA OHSHO GYOZA & TAPAS," in Los Angeles, California, USA, in May 2026. It will continue to actively promote overseas expansion.」

「In the food service business, the Company advanced the opening of new-format stores under its core Osaka Ohsho brand, mainly in the Kanto region, and actively introduced the I-Robo cooking robot to improve store profitability. At the R Baker bakery and café business, the central kitchen in Koshu, Yamanashi Prefecture, is operating stably, and the franchise rollout and improvements in store operating efficiency are progressing smoothly.」

「In the food service business, the Company advanced the opening of new-format stores under its core Osaka Ohsho brand, mainly in the Kanto region, while actively using its central kitchen in Hanyu, Saitama Prefecture, and introducing the I-Robo cooking robot to improve store profitability. At the R Baker bakery and café business, the central kitchen in Koshu, Yamanashi Prefecture, is operating stably, and the R Baker mini franchise and improvements in store operating efficiency are progressing smoothly.」

「In the R Baker bakery and café business, the Company also began operations at its central kitchen in Koshu, Yamanashi Prefecture, and promoted the R Baker mini franchise and improvements in store operating efficiency.」

「During the interim consolidated accounting period, the Company opened 19 stores in total, comprising 14 franchised stores, including 3 overseas stores, and 5 company-operated stores, while closing 10 stores, comprising 7 franchised stores, including 3 overseas stores, and 3 company-operated stores, including 1 overseas store. As a result, at the end of the interim consolidated accounting period, the number of stores was 451, comprising 351 franchised stores, including 20 overseas stores, and 100 company-operated stores, including 7 overseas stores, for a total of 27 overseas stores. In addition, 3 stores changed from company-operated stores to franchised stores due to a change in operating format.」

「In the food service business, in addition to the recovery in same-store sales at its core Osaka Ohsho brand, the Company advanced dominant store openings in the Kanto region, mainly for company-operated stores, supported by the stable operation of its central kitchen in Hanyu, Saitama Prefecture. In the R Baker bakery and café business, the start of operations at the central kitchen in Koshu, Yamanashi Prefecture, provided the impetus for expanding the R Baker mini franchise and improving store operating efficiency.」

「The Company also established a central kitchen in Koshu, Yamanashi Prefecture, for the R Baker bakery and café business and began producing frozen bread and frozen dough. It will actively roll out the new R Baker mini model, which uses these products.」

「In the bakery and café business, in addition to R Baker, the Company will actively roll out a small-format franchise package modeled on R Baker mini.」

「The Company continued its store-opening strategy focused on locations serving local communities and further strengthened its efforts to establish a dominant presence in the Kanto region. During the cumulative second quarter of the consolidated fiscal year, it opened 10 stores in total, comprising 5 franchised stores, including 3 overseas stores, and 5 company-operated stores, including 1 overseas store. It closed 10 franchised stores, including 2 overseas stores, and 2 company-operated stores. As a result, the number of stores at the end of the second quarter was 461, comprising 347 franchised stores, including 21 overseas stores, and 114 company-operated stores, including 10 overseas stores, for a total of 31 overseas stores.」

「The Company continued its store-opening strategy focused on locations serving local communities and further strengthened its efforts to establish a dominant presence in the Kanto region. During the cumulative first quarter of the consolidated fiscal year, it opened 6 stores in total, comprising 3 franchised stores, including 2 overseas stores, and 3 company-operated stores, including 1 overseas store, while closing 5 franchised stores, including 1 overseas store.」

「During the fiscal year, we opened 31 locations, comprising 21 company-operated locations, including 2 overseas locations, and 10 franchise locations, including 2 overseas locations, while closing 40 locations, comprising 11 company-operated locations and 29 franchise locations, including 3 overseas locations. As a result, at the end of the fiscal year, we had 463 locations, comprising 113 company-operated locations, including 9 overseas locations, and 350 franchise locations, including 20 overseas locations, for a total of 29 overseas locations.」

「During the cumulative third quarter of the fiscal year, we opened 26 locations, comprising 9 franchise locations, including 2 overseas locations, and 17 company-operated locations, while closing 24 locations, comprising 15 franchise locations, including 2 overseas locations, and 9 company-operated locations. As a result, at the end of the third quarter, we had 474 locations, comprising 362 franchise locations, including 21 overseas locations, and 112 company-operated locations, including 7 overseas locations, for a total of 28 overseas locations. In addition, 3 locations changed from company-operated locations to franchise locations in connection with changes in operating structure.」

「Although the foodservice business showed signs of recovery after the government fully lifted priority preventive measures against the spread of disease in March, the operating environment remained challenging due to increases in cases during the seventh wave of COVID-19 and stronger consumer preferences for saving amid rising prices. Osaka Ohsho continued to actively open stores serving local communities, while R Baker, which operates bakery cafés, implemented new initiatives, including opening "YOUR OVEN," a new format that sells freshly baked and frozen bread with a system designed to prevent food waste.」

「In the foodservice business, the core Osaka Ohsho brand continued to actively open stores in locations serving local communities and operate stores with higher profitability. At our production factories, the core of our manufacturing operations, we worked to further improve productivity and efficiency, centered on the Kanto No. 2 Factory, amid continuing increases in raw material, logistics and energy costs.」

「During the fiscal year, we opened 37 locations, comprising 25 company-operated locations and 12 franchise locations, while closing 35 locations, comprising 8 company-operated locations and 27 franchise locations. As a result, at the end of the fiscal year, we had 472 locations, comprising 107 company-operated locations, including 7 overseas locations, and 365 franchise locations, including 21 overseas locations, for a total of 28 overseas locations.」

「During the cumulative third quarter of the fiscal year, we opened 27 locations, comprising 15 company-operated locations and 12 franchise locations, while closing 22 locations, comprising 7 company-operated locations and 15 franchise locations. As a result, at the end of the third quarter, we had 475 locations, comprising 98 company-operated locations, including 4 overseas locations, and 377 franchise locations, including 27 overseas locations, for a total of 31 overseas locations.」

「Against this backdrop, Osaka Ohsho brand locations continued to open new stores near residential areas, as in the previous fiscal year, while expanding takeout and delivery menus. To enhance the appeal of each store by offering the "taste of this neighborhood" based on the characteristics of each region and store, we strengthened micromanagement by closely reviewing each store's menu composition. In other branded locations, including the ramen business operated under the "Taiyo no Tomato Men" and "Yottecoya" brands and the bakery-café business operated under the R Baker brand, we worked to improve existing stores by developing limited-time menus and introducing micromanagement, while also consolidating unprofitable locations. During the cumulative first quarter of the fiscal year, we opened 5 locations, comprising 3 franchise locations and 2 company-operated locations, while closing 8 locations, comprising 6 franchise locations, including 2 overseas locations, and 2 company-operated locations. As a result, at the end of the first quarter, we had 467 locations, comprising 377 franchise locations, including 30 overseas locations, and 90 company-operated locations, including 3 overseas locations, for a total of 33 overseas locations.」

「During the cumulative third quarter of the fiscal year, we opened 24 locations, comprising 9 franchise locations and 15 company-operated locations, while closing 50 locations, comprising 28 franchise locations and 22 company-operated locations. As a result, at the end of the third quarter, we had 465 locations, comprising 379 franchise locations, including 33 overseas locations, and 86 company-operated locations, including 2 overseas locations, for a total of 35 overseas locations.」

「While working to stimulate customer visits by strengthening micromanagement and closely reviewing menu compositions to highlight the "taste of this neighborhood" based on the regional characteristics of each area and store, we actively implemented store scrap-and-build initiatives. During the cumulative second quarter of the fiscal year, we opened 14 locations, comprising 4 franchise locations and 10 company-operated locations. We closed 33 locations, comprising 22 franchise locations and 11 company-operated locations. As a result, at the end of the second quarter, we had 472 locations, comprising 380 franchise locations, including 33 overseas locations, and 92 company-operated locations, including 2 overseas locations, for a total of 35 overseas locations.」

「During the fiscal year, we constructed the Kanto No. 2 Factory and opened 5 new Osaka Ohsho locations and 5 new café-bakery locations.」

「Going forward, we will focus on contributing to business growth by implementing measures designed to maximize synergies among our business models and strengthening openings in Japan and overseas across each format. During the cumulative third quarter of the fiscal year, we opened 21 locations, comprising 16 franchise locations, including 5 overseas locations, and 5 company-operated locations. We closed 17 franchise locations, including 5 overseas locations. As a result, at the end of the third quarter, we had 486 locations, comprising 399 franchise locations, including 49 overseas locations, and 87 company-operated locations, including 49 overseas locations.」

「We continued to make steady progress in opening new café-bakery locations. At Osaka Ohsho, however, the number of locations has remained sluggish due to various factors, including labor shortages, and we are working to improve performance through measures such as developing more attractive store models with stronger appeal.」

「At Osaka Ohsho and the ramen formats, we refined the businesses according to regional and site characteristics, including by changing trade names and store exteriors. During the fiscal year, we opened 38 locations, comprising 25 franchise locations, including 12 overseas locations, and 13 company-operated locations. We closed 40 locations, comprising 36 franchise locations, including 11 overseas locations, and 4 company-operated locations. As a result, at the end of the fiscal year, we had 482 locations, comprising 394 franchise locations, including 49 overseas locations, and 88 company-operated locations, including 49 overseas locations.」

「In addition to continuing to actively open new locations across the Osaka Ohsho, ramen and café-bakery formats, we steadily advanced efforts to improve the efficiency of existing stores through a "no knives, no prep" approach. During the cumulative second quarter of the fiscal year, we opened 21 locations, comprising 14 franchise locations, including 9 overseas locations, and 7 company-operated locations. We closed 17 locations, comprising 16 franchise locations, including 4 overseas locations, and 1 company-operated location. As a result, at the end of the second quarter, we had 488 locations, comprising 404 franchise locations, including 53 overseas locations, and 84 company-operated locations, including 53 overseas locations.」

「In addition, in the foodservice business, we advanced the development of new stores designed to improve productivity and the working environment, as well as new menus with enhanced quality and visual appeal.」

「In the foodservice business, same-store sales for the Osaka Ohsho format remained firm without falling below the previous fiscal year. We also advanced the rollout of the "Next-generation Osaka Ohsho," which reduces initial investment and promotes mechanization, and proceeded to test a new store model that does not rely on skilled craftsmanship by streamlining the menu and introducing mechanization such as conveyor ovens.」

「In the foodservice business, we advanced openings of the core Osaka Ohsho format, next-generation bakery cafés and new low-priced izakaya formats, while also working to develop new products, including menus with enhanced appeal through a focus on quality. During the cumulative third quarter of the fiscal year, we opened 43 locations, comprising 27 franchise locations, including 17 overseas locations, and 16 company-operated locations. We closed 28 locations, comprising 17 franchise locations, including 6 overseas locations, and 11 company-operated locations. As a result, at the end of the third quarter, we had 488 locations, comprising 411 franchise locations, including 49 overseas locations, and 77 company-operated locations, including 49 overseas locations.」

「In its restaurant business, the Company opened stores in its core Osaka Ohsho format, its next-generation bakery-café format and a new low-priced izakaya format, while working to develop new products, including menus whose appeal was enhanced through a focus on texture.」

「In the foodservice business, we focused on improving profitability and stability to develop the new formats created in the previous fiscal year into our next-generation core formats. At the same time, we worked to develop new formats and products, including by launching menus with enhanced quality through improvements in ingredients and portion sizes at existing formats.」

「In the foodservice business, we worked to accelerate company-operated openings for next-generation formats and diversify the value offered by existing formats.」

「Against this backdrop, in the foodservice business, our group advanced the development of next-generation formats in parallel with the streamlining of existing formats.」

「In the foodservice business, we advanced the development of next-generation formats in parallel with the streamlining of existing formats.」

「In the foodservice business, we worked to build and accelerate the opening of next-generation formats while diversifying the value offered by existing formats.」

「In addition, in the foodservice business, we focused more than ever on developing new formats.」