Country risks associated with overseas business expansion and decline in overseas franchise locations
First written in FY2018. 3 of 6 entries say "Worsened", first in FY2022. Latest entry: FY2027-H1.
Eat&Holdings moved to the "Worse" side of this theme in 2022.
0 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Conditions remain unpredictable due to the prolonged turmoil in the Middle East, worsening Japan-China relations and unexpected interest-rate increases.」
It newly identified the prolonged situation in the Middle East, worsening Japan-China relations and unexpected interest-rate increases as external risks related to its overseas business and overseas demand. - FY2026WorsenedAnnual report
「However, the group is also expected to be significantly affected by the decline in the number of Chinese visitors to Japan resulting from deteriorating Japan-China relations and its impact on inbound consumption, as well as by higher crude oil prices resulting from heightened tensions in the Middle East that emerged at the end of February.」
The disclosure states that the decline in Chinese visitors to Japan resulting from deteriorating Japan-China relations and its impact on inbound consumption have already materialized, providing greater specificity on risks related to overseas operations and overseas demand. - FY2023MaterialisedAnnual report
「Although the group planned to expand store openings in Shanghai, China, the new business was significantly affected by the stagnation of the Chinese economy, including the lockdown in Shanghai, and OSAKA FUN DINING 大阪王将 opened only 3 stores.」
The plan to expand store openings in Shanghai, China was actually affected by country risks, including the lockdown, with the number of new stores limited to 3. - FY2022WorsenedAnnual report
「If the group is unable to implement its planned business expansion because of country-specific risks in each market, including political conditions, the economy, conflicts, laws and regulations, and business practices, this could affect the group's business performance and other matters.」
Conflict is specifically identified, in addition to the previously cited political, economic, and legal and regulatory factors, as a driver of overseas expansion risk. - FY2019RestatedAnnual report
「The group operates stores overseas through overseas affiliates or franchisees, which are local companies. If the group is unable to implement its planned business expansion because of country-specific risks in each market, including political conditions, the economy, laws and regulations, and business practices, this could affect the group's business performance and other matters.」
The political, economic, legal and regulatory, and business-practice risks associated with expansion through overseas affiliates and local franchisees are reiterated. - FY2018First statedAnnual report
「The group operates stores overseas through overseas affiliates or franchisees, which are local companies. If the group is unable to implement its planned business expansion because of country-specific risks in each market, including political conditions, the economy, laws and regulations, and business practices, this could affect the group's business performance and other matters. In addition, if the franchise chain cannot be expanded as planned because of a decline in the number of franchisees or deterioration in their performance, this could affect the group's business performance and other matters, including through a decline in royalty income.」
The disclosure specifically describes, for overseas expansion through overseas affiliates and local franchisees, the risks posed by political conditions, the economy, laws and regulations and other factors specific to the markets entered, as well as the risks of a decline in overseas franchisees and deterioration in their performance, for the first time.