Burden of Preparation Costs and Personnel Expenses Associated with Continued Store Openings and New Graduate Hiring
First written in FY2017-Q1. 8 of 16 entries say "Mitigated", first in FY2018-Q1. Latest entry: FY2020.
The whole theme swung hardest in 2020: 6 of 21 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2020MitigatedAnnual report
「Revenue in the sales business declined substantially due to the impact of the COVID-19 pandemic, but the company worked to improve its profit structure by improving operations and services through stronger communication between frontline staff and management.」
While revenue declined due to the impact of the pandemic, the company pursued improvements to its profit structure by strengthening communication between frontline staff and management, improving operations and enhancing services. - FY2020-Q3MitigatedAnnual report
「Regarding segment profit, we are controlling costs, primarily selling expenses and recruitment expenses, to improve our profit structure. As a result, revenue for the cumulative third quarter of the consolidated fiscal year was ¥17,367 million, down 0.3% year on year, while segment profit was ¥112 million, compared with a segment loss of ¥139 million in the same period of the previous year.」
Cost control focused on selling expenses and recruitment expenses enabled the sales business to turn from a ¥139 million loss in the same period of the previous year to a ¥112 million profit, mitigating the impact of preparation and recruitment costs. - FY2020-Q2MitigatedAnnual report
「Regarding segment profit, we are controlling costs, primarily selling expenses and recruitment expenses, to improve our profit structure.」
Cost control focused on selling expenses and recruitment expenses continued, narrowing the segment loss in the sales business from ¥330 million in the same period of the previous year to ¥164 million. - FY2020-Q1MitigatedAnnual report
「Regarding segment profit, we are controlling costs, primarily selling expenses and recruitment expenses, to improve our profit structure.」
The company explicitly stated that it is controlling costs, primarily selling expenses and recruitment expenses. The segment loss in the sales business narrowed from ¥117 million in the same period of the previous year to ¥29 million. - FY2019WorsenedAnnual report
「Revenue and segment profit in the sales business have been on a declining trend. This was due to a decline in same-store sales in the core domestic restaurant business, reflecting the impact of a corrective order from the Consumer Affairs Agency in May and temporary closures caused by natural disasters such as torrential rain and earthquakes, as well as a temporary increase in head office costs to establish a new organizational structure.」
Head office costs temporarily increased as a new organizational structure was established for the rebranding of existing brands and the launch of new brands, resulting in a segment loss of ¥328 million in the sales business. - FY2019-Q3WorsenedAnnual report
「Segment profit declined as gross profit decreased along with revenue. In addition, temporary costs were incurred as the company worked to establish a new organizational structure for the rebranding of existing brands and the launch of new brands.」
In addition to the decline in revenue, temporary costs associated with establishing a new organizational structure for the rebranding of existing brands and the launch of new brands were incurred, resulting in a segment loss of ¥139 million in the sales business. - FY2019-Q2WorsenedAnnual report
「Segment profit declined as gross profit decreased along with revenue. In addition, temporary costs were incurred as the company worked to establish a new organizational structure for the rebranding of existing brands and the launch of new brands.」
Temporary costs associated with establishing a new organizational structure for the rebranding of existing brands and the launch of new brands continued to be a factor behind the segment loss. - FY2019-Q1WorsenedAnnual report
「Segment profit declined as gross profit decreased along with revenue. In addition, temporary recruitment expenses and other costs were incurred as the company worked to establish a new organizational structure to maximize the effects of rebranding existing brands and launching new brands.」
Temporary recruitment expenses and other costs were incurred as a new organizational structure was established for the rebranding of existing brands and the launch of new brands, reducing profit. - FY2018MitigatedAnnual report
「Although revenue in the sales business was flat, segment profit was on an improving trend. This was due to progress in reducing expenses through the effects of reviewing store costs, which improved store profit, reducing expenses for launching new businesses, including store openings, and reviewing head office costs.」
While the company incurred costs associated with store openings and new business launches, among other activities, profit improved through reviews of store costs, new business launch expenses and head office costs. - FY2018-Q3MitigatedAnnual report
「Although revenue in the sales business was flat, segment profit was on an improving trend. This was due to progress in reducing expenses through the effects of reviewing store costs, which improved store profit, reducing expenses for launching new businesses, including store openings, and reviewing head office costs.」
Despite the continuing burden of personnel expenses and other costs, expense reductions progressed through reviews of store costs, new business launch expenses and head office costs, contributing to improved profit in the sales business. - FY2018-Q2MitigatedAnnual report
「Although revenue in the sales business was flat, segment profit was on an improving trend. This was because, despite the tendency for personnel expenses to be higher during the cumulative second quarter due to continued staffing increases primarily through new graduate hiring, expense reductions progressed through reviews of expenses for launching new businesses outside the restaurant business and head office costs.」
While the personnel expense burden associated with new graduate hiring continued, expense reductions progressed through reviews of new business launch expenses and head office costs, putting segment profit in the sales business on an improving trend. - FY2018-Q1MitigatedAnnual report
「Although personnel expenses tend to be higher in the first quarter because staffing increases, primarily through new graduate hiring, expenses have been reduced through progress in cutting costs by reviewing expenses for launching new businesses outside the restaurant business and head office costs.」
While the first-quarter personnel expense burden from new graduate hiring continued, cost reductions progressed through reviews of new business launch expenses and head office costs, putting segment profit in the sales business on an improving trend. - FY2017WorsenedAnnual report
「Higher expenses from investments in new store openings and factory launches, as well as higher expenses associated with launching the overseas business, also contributed to the decline in operating income.」
Preparation costs extended beyond store openings to the launch of a factory and overseas businesses, becoming a factor reducing full-year operating profit. - FY2017-Q3WorsenedAnnual report
「As a result, revenue for the cumulative third quarter of the current consolidated fiscal year increased to ¥19,484 million, up 22.3% year on year. However, due to the impact of lower sales at existing stores and higher launch costs for overseas and new businesses, operating income declined 58.0% year on year to ¥263 million, ordinary income declined 46.5% to ¥417 million, and quarterly net income attributable to owners of the parent declined 68.6% to ¥141 million.」
In addition to store openings and overseas expansion, increased costs for launching new businesses were identified as a factor reducing profit, broadening the scope of the cost burden. - FY2017-Q2RestatedAnnual report
「The increase in preparation costs resulting from continued openings of overseas food-service outlets was a factor behind the decline in profit from the previous period.」
The increase in preparation costs associated with continued store openings was reconfirmed as a factor reducing profit. - FY2017-Q1First statedAnnual report
「In addition, restaurant openings, including overseas locations, continued during the first quarter, increasing preparation costs. Because we are seeking to increase staffing primarily through new graduate hiring, personnel expenses tend to be higher in the first quarter. These factors caused profit to decline from the same quarter of the previous year.」
For the first time, it explicitly identifies increased preparation costs from continued store openings and first-quarter personnel expenses associated with new graduate hiring as factors reducing profit.