Policy of using high quality, rather than price competition, as a source of competitiveness
First written in FY2016. 3 of 5 entries say "Softened", first in FY2017-Q2. Latest entry: FY2019.
3 other companies' latest entry also says "Restated".
- FY2019RestatedAnnual report
「This format was developed based on the concept of meeting a broad range of dining needs and offers relatively high average customer spending through high value-added services. However, as the market overall shows a preference for highly specialized formats, we will establish a format-development structure capable of responding quickly to market trends.」
The policy of responding to the market shift toward highly specialized formats while maintaining a foundation of high value added and relatively high average customer spending has continued. - FY2017SoftenedAnnual report
「However, although this also concerns future format development, it is difficult to respond within the existing format mix as the industry as a whole moves toward lower prices and greater specialization.」
The company considers it difficult to respond to market changes with only its existing higher-priced, high-value-added formats and is placing greater emphasis on adapting to lower prices and greater specialization. - FY2017-Q3SoftenedAnnual report
「Until now, our format mix has focused on formats with relatively high average customer spending and menu offerings capable of meeting a broad range of dining needs. However, as the industry overall moves toward lower prices and greater specialization amid a declining trend in alcohol consumption, we are developing new formats and changing existing stores to those formats.」
The company is clearly shifting from its previous focus on relatively high-priced formats to responding to the trend toward lower prices and greater specialization. - FY2017-Q2SoftenedAnnual report
「Amid a market crowded with numerous competing stores, relatively inexpensive formats have been performing well even in segments highly dependent on alcohol sales, while our formats, which have relatively high average customer spending, have been struggling. In addition, the large number of stores opened in previous fiscal years to expand our business scale led to weaker store operations. We believe these factors combined to cause declines in revenue and earnings. Going forward, we aim to break out of the downward trend in revenue by prioritizing our response to lower-priced formats.」
As the previous format mix centered on higher-priced formats struggled, the company indicated that it would prioritize responding to lower-priced formats, relatively weakening its previous policy of avoiding price competition and competing on quality. - FY2016First statedAnnual report
「We plan to open stores under formats that make high-quality products, services, and ambience the source of our competitiveness, without readily entering into price competition.」
The company indicated that it differentiates itself through the quality of its products, services, and store ambience rather than through lower prices.