Store Closures and Business Impact Due to COVID-19
First written in FY2020-Q3. 4 of 15 entries say "Materialised", first in FY2020. Latest entry: FY2024.
The Monogatari moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 68 of 90 companies on the "Worse" side.
7 other companies' latest entry also says "Softened".
- FY2024SoftenedAnnual report
「Since COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law in May 2023, the normalization of economic activity has progressed, and domestic consumption activity has continued to show signs of a gradual recovery.」
The description of store closures and business performance impacts caused by COVID-19 shifted to a recovery context driven by the reclassification as a Class 5 disease and the normalization of economic activity, weakening its treatment as a serious standalone risk. - FY2024-Q1RestatedAnnual report
「Since COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law in May 2023, the normalization of economic activity has progressed, and domestic consumption activity has continued to show signs of a gradual recovery.」
It described the reclassification of COVID-19 as a Class 5 disease and the recovery in economic and consumption activity, while noting separately that changes in lifestyles that may affect demand for eating out and higher costs continued. - FY2023The easing of the impact of COVID-19 coexisted with residual effectsAnnual report
「Although the recovery trend in demand for eating out has continued as the movement of people recovered following the reclassification of COVID-19 as a Class 5 disease, we continue to be affected by a shift from eating out to takeout and home cooking due to changes in lifestyles, as well as by restrictions on dining out in large groups and going out at night.」
The reclassification of COVID-19 as a Class 5 disease and the recovery in the movement of people pointed to a recovery trend in demand for eating out, while the effects of the shift to takeout and home cooking and restrictions on large-group dining and going out at night remained. - FY2023-Q3MaterialisedAnnual report
「Certain stores in China are temporarily closed at the request of the Chinese government to prevent the spread of COVID-19. Fixed costs, including personnel expenses, incurred during the closure period have been recorded as extraordinary losses under COVID-19-related losses.」
At the request of the Chinese government, certain stores in China were temporarily closed, and ¥18 million in fixed costs, including personnel expenses, was recorded as COVID-19-related losses. - FY2023-Q2The impact of the seventh and eighth waves coexisted with a recovery in consumptionAnnual report
「During the six months ended the second quarter, the Japanese economy was intermittently affected by the seventh and eighth waves of COVID-19 infections. However, consumption activity gradually recovered, helped by the effects of measures aimed at normalizing economic activity, including the nationwide travel support program and the easing of border-control measures.」
It stated that although the effects of the seventh and eighth waves continued, consumption activity gradually recovered as a result of measures including nationwide travel support and the easing of border-control measures. - FY2023-Q1The impact of the seventh wave coexisted with signs of a recovery in consumptionAnnual report
「During the three months ended the first quarter, the Japanese economy was affected by the seventh wave of COVID-19 infections. However, as the number of new infections began to trend down from mid-August, consumption activity showed signs of a gradual recovery.」
It stated that although the impact of the seventh wave continued, the decline in new infections from mid-August brought signs of a recovery in consumption activity. - FY2022-Q3WorsenedAnnual report
「The spread of COVID-19 infections led authorities across Japan to request that people refrain from going out, forcing us to shorten business hours intermittently.」
The signs of recovery from vaccinations and the lifting of the state of emergency gave way to the spread of infections caused by new variants, which led to the application of priority preventive measures and again materially affected store operations through requests to refrain from going out and shortened business hours. - FY2022-Q2Declining infections, easing restrictions on activities and continued concerns over variant strainsAnnual report
「During the six months ended the second quarter, the Japanese economy showed signs of recovery as the number of infections trended down with the rollout of COVID-19 vaccinations and restrictions on activities were gradually eased, despite the prolonged impact of COVID-19. However, concerns over the spread of infections caused by new variants remain, and the outlook continues to be uncertain.」
It noted signs of recovery from the rollout of vaccinations, the decline in infections and the easing of restrictions on activities, while concerns over the spread of infections caused by new variants and uncertainty remained. - FY2022-Q1MaterialisedAnnual report
「However, signs of improvement emerged in the severe business environment, partly due to the expansion of subsidy programs for cooperation by local authorities. Nevertheless, the decline in customer numbers caused by reduced operating hours had a significant impact. Revenue at existing domestic stores during the first-quarter consolidated cumulative period declined 15.3% year on year at company-operated stores and 14.9% at franchised stores.」
The shortening of business hours at the request of local authorities and the decline in customer traffic materially affected same-store sales in the first quarter, which fell 15.3% at company-operated stores and 14.9% at franchised stores. It also noted signs of improvement resulting from the expansion of the subsidy program. - FY2021MaterialisedAnnual report
「The COVID-19 pandemic affected the results for the consolidated fiscal year through reduced operating hours and other factors. The impact continues, and it is difficult to predict the situation going forward. If the pandemic spreads further, it may have a significant impact on the company’s results.」
The company stated that reduced operating hours and other effects of the pandemic had actually affected FY2021 results and that the impact continued. Stores continued to implement infection-prevention measures. - FY2021-Q3WorsenedAnnual report
「After the first state of emergency was lifted, signs of recovery began to emerge, helped by the rebound from consumers’ fatigue with self-restraint and initiatives such as the “Go To Eat Campaign” administered by the Ministry of Agriculture, Forestry and Fisheries. However, this recovery was temporary. After the state of emergency was reintroduced, requests from the government and local authorities to refrain from going out and reduce operating hours created an unprecedentedly severe business environment for the restaurant industry.」
After a temporary recovery trend, the reintroduction of the state of emergency from January through March 2021 again made requests to refrain from going out and reduce operating hours risks to store operations and results. The impact of the pandemic was continuing in practice. - FY2021-Q2WorsenedAnnual report
「The spread of the second and third waves of COVID-19 continued unabated, and the outlook remained uncertain.」
The continuing spread of the second and third waves meant that requests from the government and local authorities to refrain from going out and reduce operating hours remained and intensified as risks to store operations and results. - FY2021-Q1RestatedAnnual report
「Although personal consumption showed signs of recovery following the lifting of the state of emergency, the number of COVID-19 cases was again trending upward, and an unpredictable situation continued.」
The company stated that the pandemic’s impact continued and that an unpredictable situation persisted, including a renewed increase in cases. Meanwhile, store operations resumed after the state of emergency was lifted, and revenue gradually recovered. - FY2020MaterialisedAnnual report
「The COVID-19 pandemic had an extremely significant impact on the results for the consolidated fiscal year. The impact continues, and it is difficult to predict the situation going forward.」
The company stated that the pandemic had an extremely significant actual impact on the results for the fiscal year, including extraordinary losses of ¥1,219.344 million, the temporary closure of all company-operated stores in Japan and a decline in same-store revenue. - FY2020-Q3First statedAnnual report
「If the spread of COVID-19 continues unabated and further declines in customer visits, reduced store hours and store closures occur due to the continued requests to refrain from going out following extensions of the state of emergency, this may affect the Group’s results. In addition to the temporary closure of 12 stores operated by 物語(上海)企業管理有限公司 from 27 January through the end of February 2020, all 302 company-operated stores in Japan were temporarily closed from 7 April through 10 May 2020. As a result, revenue declined significantly during the period, creating circumstances that raised substantial doubt about the Group’s ability to continue as a going concern.」
The company identified declining customer visits, reduced store hours and store closures caused by the prolonged COVID-19 pandemic as new risks. It explained that the temporary closure of 12 stores in Shanghai and all 302 company-operated stores in Japan, the significant decline in revenue and circumstances raising substantial doubt about going concern had actually occurred.