Reducing the Cost Ratio by Reviewing Procurement Costs and the Menu Gross Profit Mix

「In terms of profit, the company worked to minimize the increase in costs by managing the menu gross margin mix, consolidating the number of food ingredients and developing new sourcing regions in response to rising raw material prices. However, it was unable to absorb increases in costs including store opening and renovation expenses, personnel expenses and various other expenses. Operating profit was ¥491 million, down 46.8% year on year, and ordinary profit was ¥537 million, down 49.1%.」

「To address rising raw-material prices, we worked to minimize the increase in cost of sales through menu gross-margin mix, consolidation of food-item categories, and development of new production areas. However, we were unable to absorb higher costs, including expenses related to new openings and renovations, labor costs, and various other expenses.」

「With regard to profit, we worked to minimize the impact of higher costs by optimizing the menu gross-margin mix, consolidating the number of food items, and developing new sourcing regions in response to rising raw-material prices. However, due to higher store-opening and renovation costs, personnel expenses, and other expenses, operating profit was ¥55 million, down 82.5%% year on year; ordinary profit was ¥87 million, down 75.8%; and interim net profit attributable to owners of the parent was ¥101 million, down 42.5%.」

「Although personnel expenses and other costs increased, the company worked to review various expenses and control costs, measures that have continued since the COVID-19 pandemic. As a result, including the effects of addressing higher costs through digital transformation and menu revisions, operating profit was ¥1,300 million.」

「During the second quarter of the current consolidated fiscal period, customer traffic from banquets, inbound visitors and domestic group tours continued to trend steadily from the first quarter. Together with measures to address higher costs through digital transformation and menu revisions, business performance progressed smoothly.」

「In response to rising raw material prices, the company continued to work to minimize cost increases by managing the menu gross margin mix and consolidating the number of food ingredients.」

「In response to soaring raw material prices, the company reviewed product selling prices and the menu gross margin mix, consolidated the number of menu formats and reduced the number of food ingredients by increasing the use of common ingredients, in an effort to minimize cost increases. Regarding the break-even sales level reduced during the COVID-19 pandemic, the company worked to maintain it while continuing efforts to lower it.」

「In response to soaring raw material prices, the company reviewed product selling prices and the menu gross margin mix, consolidated the number of menu formats and reduced the number of food ingredients by increasing the use of common ingredients, in an effort to minimize cost increases. Regarding the break-even sales level reduced during the COVID-19 pandemic, the company worked to maintain it while continuing efforts to lower it.」

「The company also worked to maintain the break-even sales level achieved during the COVID-19 pandemic and considered the possibility of further reductions, while addressing soaring raw material prices through the menu mix and other measures.」

「Selling, general and administrative expenses decreased by ¥4,023 million, or 23.8% year on year, measured before losses related to the response to the novel infectious disease were reclassified from selling, general and administrative expenses to extraordinary losses. This reflected the company’s continued efforts to maintain reductions and savings in each expense category achieved through reviews implemented from the previous fiscal year. As a result, the company was able to lower its break-even point.」

「On the cost side, to lower the break-even point, the company reviewed each category of selling, general and administrative expenses in the previous fiscal year and worked to maintain the resulting reductions and savings. As a result, selling, general and administrative expenses decreased by ¥3,983 million, or 29.8% year on year, measured before losses related to the response to the novel infectious disease were reclassified from selling, general and administrative expenses to extraordinary losses.」

「On the cost side, to lower the break-even point, the company reviewed each category of selling, general and administrative expenses in the previous fiscal year and worked to maintain the resulting reductions and savings. As a result, selling, general and administrative expenses decreased by ¥3,236 million, or 35.6% year on year, measured before losses related to the response to the novel infectious disease were reclassified from selling, general and administrative expenses to extraordinary losses.」

「On the cost side, the company worked to control expenses in order to lower the break-even point, as it did in the previous fiscal year.」

「On the cost side, the company reviewed the cost of sales and personnel expenses, closed unprofitable stores and reviewed various expenses, including negotiations for rent reductions, in an effort to lower its break-even point.」

「In terms of profit, to prepare for a prolonged downturn, the company is working to lower its break-even point by controlling the cost of sales and personnel expenses, closing unprofitable stores and reducing costs through a review of expenses.」

「In terms of profit, gross profit was ¥14,388 million, down 4.6% year on year, as the company narrowed its menu, reduced the number of items, procured spot products flexibly and controlled the menu gross margin mix, among other measures, to limit the impact of rising food prices as much as possible.」

「In terms of profit, gross profit was ¥7,395 million, down 3.8% year on year, as the company narrowed its menu, reduced the number of items, procured spot products flexibly and controlled the menu gross margin mix, among other measures, to limit the impact of rising food prices as much as possible. Operating profit was ¥496 million, down 27.8%, following a review of expenses and other measures, while ordinary profit was ¥515 million, down 25.7%.」

「To limit the impact of rising food prices as much as possible, the company narrowed its menu, reduced the number of items, procured spot products flexibly and managed the menu gross margin mix, among other measures. Operating profit was ¥2,457 million, down 20.1% year on year.」

「In terms of profit, operating profit was ¥2,094 million, down 17.3% year on year, as the company narrowed its menu and reduced the number of items to improve productivity, while procuring spot products flexibly, among other measures, to limit the impact of rising food prices as much as possible.」

「In terms of profit, operating profit was ¥1,012 million, down 27.9% year on year, as the impact of rising raw material prices was controlled through the menu gross margin mix, among other measures. Ordinary profit was ¥992 million, down 31.1%, due mainly to ¥74 million in compensation payments.」

「Gross profit was ¥31,469 million, reflecting efforts to contain the cost ratio through the menu mix in response to rising purchase prices, among other measures.」

「In terms of profit, gross profit increased as a result of a lower cost ratio through the review of procurement costs and the menu gross margin mix, among other measures. However, this was insufficient to absorb the increase in selling, general and administrative expenses. Operating profit was ¥2,152 million, down 11.9% year on year, and ordinary profit was ¥2,186 million, down 12.4%.」

「In terms of profit, gross profit increased as a result of a lower cost ratio through the review of procurement costs and the menu gross margin mix, among other measures. However, this was insufficient to absorb the increase in selling, general and administrative expenses. Operating profit was ¥1,536 million, down 2.6% year on year, and ordinary profit was ¥1,565 million, down 3.6%.」