Development of new restaurant formats based on one format per fiscal period

「For new store openings, we opened the second store of the new inbound-oriented “KOBE Beef Emperor Steak” format in Kyoto and opened a store under the Umai format in Kumagaya, Saitama Prefecture.」

「○ 3 new locations opened\n1 うま囲 location, 1 ボンジョルノ食堂 location and 1 エンペラーステーキ location」

「Capital expenditure during the fiscal year included changing the formats of 4 existing locations for redevelopment purposes and opening 1 new location to expand the format portfolio.」

「The following new openings, format changes and store closures were implemented.\n○ 4 new locations opened\n2 忍家 locations, 1 うま囲 location and 1 池森そば location」

「As a new concept store, we opened a location in a food court. We opened “池森そば生そばアレンジキッチン” ヒタチエ店 in Hitachi, Ibaraki Prefecture, and continued efforts to establish store operations with a small number of employees. ○ New openings: 1 store」

「Following the ramen and motsunabe concepts launched as new concepts in the previous fiscal year, we opened a 四〇屋 concept and began efforts to establish another new concept.」

「Capital expenditure during the fiscal year included changing the formats of 6 existing locations for redevelopment purposes and opening 1 new location to expand the format portfolio.」

「Following the ramen format, which the Company began rolling out in the previous fiscal year as a new format, it opened a motsunabe restaurant in Tsuchiura, Ibaraki Prefecture, and began efforts to establish another new format.」

「We opened “ふじ田下妻店” as the first suburban location of the ramen concept “ふじ田,” which opened in February this year, and are working to cultivate it as a new core concept.」

「We opened “ふじ田荻窪店” as the second location of the ramen concept “ふじ田,” which opened in February this year, and are working to cultivate it as a new core concept.」

「During the fiscal year, we began efforts to develop ramen and Italian concepts and cultivate them as new core concepts.」

「At チェゴ’s “焼肉とスンドゥブ” concept, newly reopened as a suburban store at the つくばみどりの location, we introduced mobile ordering, allowing customers to place orders using their smartphones, and began efforts aimed at operating with a small number of employees.」

「In addition to the measures described above, we will continue developing model restaurants capable of withstanding future changes in the external environment.」

「Capital expenditures during the fiscal year included the conversion of 3 stores for the redevelopment of existing locations and the opening of 2 new stores under new concepts to expand the concept portfolio.」

「忍家 concept: 1 store (Kamagaya, Chiba Prefecture) → たんとんたん concept ※ New concept」

「○ New stores 大釜もつ煮五右衛門 concept (new concept): 2 stores (Osaki, Miyagi Prefecture; Chuo Ward, Sagamihara, Kanagawa Prefecture)」

「During the cumulative third quarter, we decided on the following new openings and concept changes. Although these concept changes and new openings are expected to have a negative effect on the current fiscal year’s results due to the significant initial costs, they are being implemented to increase flexibility in store expansion and improve performance from the next fiscal year onward. ○ New openings: 2 stores 上ル商店荻窪店 (Itabashi Ward, Tokyo) 焼肉ホルモン酒場れれれ日立店 (Hitachi, Ibaraki Prefecture) ○ Concept changes: 2 stores 忍家いわき湯本店 → 湯本しゃぶ将軍田なべ (Iwaki, Fukushima Prefecture) 味斗上尾駅東口店 → 赤から上尾駅東口店 (Ageo, Saitama Prefecture)」

「○ Concept change 忍家浦和駅西口店 → うま囲浦和駅西口店 (Urawa Ward, Saitama, Saitama Prefecture) As of the report submission date, the following additional concept change had also been implemented. 忍家巣鴨駅前店 → うま囲巣鴨駅前店 (Toshima Ward, Tokyo), opened 10 October 2019」

「忍家浦和駅西口店 → うま囲浦和駅西口店 ※ New concept」

「Our basic policy for concept development is to develop at least 1 concept each fiscal year in order to build a stable earnings structure by optimizing the concept portfolio.」

「The concept changes during the cumulative third quarter were as follows. ○ Converted to the 忍家 concept: 2 stores ・みんなの和食村 concept: 2 stores (Chikusei, Ibaraki Prefecture; Nasushiobara, Tochigi Prefecture) ○ Converted to the 赤から concept: 6 stores ・忍家 concept: 2 stores (Higashiibaraki District, Ibaraki Prefecture; Hitachi, Ibaraki Prefecture) ・巴 concept: 1 store (Hitachinaka, Ibaraki Prefecture) ・串三昧 concept: 1 store (Kamisu, Ibaraki Prefecture) ・串市場 concept: 1 store (Soka, Saitama Prefecture) ・味斗 concept: 1 store (Mihama Ward, Chiba, Chiba Prefecture) ○ Converted to the もんどころ concept: 1 store ・月豆 concept: 1 store (Hitachinaka, Ibaraki Prefecture)」

「Regarding store conditions, our basic approach is to improve performance within existing concepts. However, for stores requiring urgent improvement, we are primarily pursuing conversions using franchise concepts. The concept changes during the cumulative second quarter were as follows. ○ Converted to the 赤から concept: 4 stores ○ Converted to the もんどころ concept: 1 store」

「Regarding store conditions, our basic approach is to improve performance within existing concepts. However, for stores requiring urgent improvement, we are primarily pursuing conversions using franchise concepts. The concept changes during the cumulative first quarter were as follows.」

「As an initiative for the next fiscal year, we are simultaneously developing new concepts as measures to improve the performance of suburban roadside stores, which are currently facing difficult conditions.」

「Regarding the review of the concept portfolio, our policy is to convert stores to franchise concepts in a way that maximizes expected benefits while reducing development time and expenses, while also promoting efficient store operations through consolidation of concepts. As part of this review, we decided to convert stores to the following franchise concepts. ○ 1 store to the “いきなり!ステーキ” concept (converted from the “忍家” concept in Mito, Ibaraki Prefecture) ○ 1 store to the “赤から” concept (converted from the “みんなの和食村” concept in Otawara, Tochigi Prefecture)」

「Regarding the review of the concept portfolio, our policy is to expand the franchisee business in a way that maximizes expected benefits while reducing the time and expense required to develop concepts.」

「Our basic policy for concept development is to develop at least 1 concept each fiscal year in order to build a stable earnings structure by optimizing the concept portfolio.」

「As the industry continues to move broadly toward lower prices and specialization amid declining alcohol consumption, we are developing the following new concepts and converting existing stores to them.」

「We developed the “みんなの和食村” concept, which offers an extensive, dining-focused menu capable of meeting a broad range of food-service demand. In competing concepts, demand continues to shift toward low-priced formats such as all-you-can-eat offerings as the industry becomes generally more focused on lower prices and specialization. To respond to this environment, we also developed the “串三昧” concept, offering all-you-can-eat grilled skewers, kushikatsu and gyoza.」

「Our basic policy for new concept development is to develop 1 concept each fiscal year.」