Strengthening Store Operations and Renovating Aging Equipment

「At existing stores, the company promoted digital transformation and optimized costs by store format in response to higher raw material prices, including by changing core menus and reviewing prices in line with seasonal product changes.」

「The group sought to operate existing stores efficiently, strengthened efforts to acquire members of its proprietary app and LINE members, and used these efforts to increase reservations. In addition to higher raw material prices, energy and recruitment-related costs also rose across the board, and the group optimized costs by store format, including by changing core menus and reviewing prices in line with seasonal product changes.」

「Although stores continued to recover gradually, they had still not reached pre-COVID levels, and the company continued to operate them with an emphasis on efficiency, including by closing unprofitable stores, converting store formats and reviewing operating hours. In addition to higher raw material prices, energy and recruitment-related costs also rose across the board, and the company optimized costs by store format, including by changing core menus and reviewing prices in line with seasonal product changes.」

「Although stores continued to recover gradually, they had not yet returned to pre-COVID levels, and the company continued to operate them with an emphasis on efficiency. As raw material prices continued to rise, the company optimized costs by store format, including by changing the core menu and reviewing prices in line with seasonal product changes.」

「The company worked to optimize costs and advance store operations by strengthening reservations during periods with high customer traffic and assigning staff efficiently, with an emphasis on efficiency, including by reviewing operating hours.」

「During the third quarter, the company advanced store operations through active promotional activities and efficient staffing timed to the year-end party season, an opportunity to attract customers.」

「As described above, although the stores in this segment faced challenging external conditions, existing stores continued to outperform the same quarter of the previous year as a result of format conversions, stronger advertising and promotions, and broader efforts to strengthen store operations.」

「To strengthen store operations, the company held in-house training sessions to discuss and consider the results of outsourced operational surveys, and sought to improve QSC standards by having employees themselves consider and implement improvements based on a shared awareness of the issues.」

「To strengthen store operations, the company shared the results of outsourced operational surveys and store hygiene inspections through in-house training, held the "Hori School" program, where employees themselves discuss and consider improvements, and sought to enhance the overall capabilities of store employees.」

「To strengthen store operating capabilities, we share the results of outsourced operational surveys and store hygiene inspections through internal training, and hold 「ホリイスクール」 sessions where employees themselves discuss and consider improvements, thereby seeking to improve the overall capabilities of store employees.」

「To strengthen store operating capabilities, we share the results of outsourced operational surveys and store hygiene inspections through internal training, and hold 「ホリイスクール」 sessions where employees themselves discuss and consider improvements, thereby seeking to improve the overall capabilities of store employees.」

「Specifically, the company sought to motivate employees by expanding incentive programs linked to their performance, and promoted the enhancement of in-house training programs, expansion of IT-based communication networks with store employees, and stronger hygiene management to improve QSC (quality, service and cleanliness). To assess the effectiveness of these measures, the company also conducted outsourced operational surveys and promoted the strengthening and standardization of store operations.」

「Expansion of incentive programs linked to sales performance and improvement of store operations through the introduction of new store management tools」

「The company also sought to increase visits by new customers by strengthening advertising and promotions at existing stores, while expanding incentive programs linked to sales performance and introducing new guidance and management tools to strengthen store operations.」

「Capital expenditures during the fiscal year included format conversions at 21 existing stores and refurbishments at 15 stores as part of the redevelopment of existing stores.」

「To improve this situation, new store openings were temporarily suspended during the fiscal year, while we strengthened store operating capabilities, renovated aging stores and converted stores to different formats to improve the operating performance of existing stores as follows. The format conversions and store renovations carried out during the nine-month cumulative period were as follows. ○ Format conversions: 18 stores」

「To improve this situation, new store openings were temporarily suspended during the fiscal year, while we strengthened store operating capabilities, renovated aging store facilities and converted stores to different formats to improve the operating performance of existing stores. The format conversions and store renovations carried out during the six-month cumulative period were as follows. ○ Format conversions: 14 stores　○ Store renovations: 14 stores」

「We intend to strengthen store operating capabilities and renovate aging store facilities in order to improve the operating performance of existing stores.」