Risk of Business Suspensions and Sales Declines Due to the Spread of COVID-19
First written in FY2020-Q3. 6 of 13 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2023.
Eternal Hospitality Group moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 69 of 91 companies on the "Worse" side.
33 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「Regarding the impact of COVID-19, although the disease was classified as a Category V infectious disease under the Infectious Diseases Control Law in May 2023 and the situation showed a degree of convergence, if the spread of a new infectious disease or other outbreak occurs in the future, customer traffic may decline and the financial condition or performance of our group may be affected.」
The filing describes a degree of convergence and a recovery in consumer activity following the reclassification as a Category V infectious disease, with the focus shifting from the previous impact centred on operating restrictions to the future risk of the spread of a new infectious disease. - FY2023-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, our group saw customer traffic temporarily decline in August and September 2022 due to the so-called seventh wave, when COVID-19 cases surged in July 2022, but a rapid recovery followed.」
The company reiterates its view that customer traffic declined due to the seventh wave, followed by a rapid recovery. - FY2023-Q2Recovery in customer traffic after the seventh waveAnnual report
「Although customer traffic temporarily declined in August and September 2022 due to the so-called seventh wave, when the number of COVID-19 infections surged in July 2022, a rapid recovery was subsequently seen.」
The filing states that customer traffic actually declined due to the seventh wave, followed by a rapid recovery. - FY2022WorsenedAnnual report
「To prevent the spread of COVID-19, local governments issued requests concerning closures and reduced operating hours. If the situation continues for an extended period or the spread of infection advances further, customer traffic may decline and the financial condition or performance of our group may be affected.」
The impact of the spread of infection, including the seventh wave from July 2022 onward, continued through requests for closures and reduced operating hours and declining customer traffic. The possibility of a prolonged situation or further spread of infection was also explicitly identified as a risk. - FY2022-Q3RestatedAnnual report
「However, as the number of COVID-19 infections surged in January 2022, local governments again issued requests to refrain from operating, and operations remained subject to certain restrictions, including reduced operating hours, through March 2022. The outlook remains uncertain due to the spread of COVID-19 and geopolitical risks.」
The filing describes requests from local governments to refrain from operating following the surge in infections in January 2022 and restrictions such as reduced operating hours through March. Operating restrictions and uncertainty over the outlook due to the pandemic continue. - FY2022-Q2WorsenedAnnual report
「However, as the number of COVID-19 cases surged again in January 2022, local governments once again issued requests for people to refrain from going out, and the outlook remained unpredictable.」
As the number of infections surged, local governments again issued requests to refrain from operating. The spread of the Omicron variant has prolonged operating restrictions, including reduced operating hours, and their impact on performance. - FY2022-Q1WorsenedAnnual report
「In August and September 2021, many prefectures and metropolitan areas issued requests to refrain from serving alcoholic beverages. Although Torikizoku closed many stores, some stores operated without serving alcohol. Sales gradually recovered after requests from the national and local governments were lifted, but same-store sales during the cumulative first quarter were 33.9% of the year-earlier level.」
Although sales gradually recovered after the various requests were lifted, many stores were closed in August and September 2021, and same-store sales were 33.9% of the year-earlier level. Operating restrictions and the impact on performance due to the pandemic continued. - FY2021WorsenedAnnual report
「Since the state of emergency declared in April 2020 was lifted, our group resumed store operations while prioritising the safety of customers and employees and implementing thorough infection-control measures. Although sales gradually recovered after requests from local governments to refrain from operating were lifted, we again shortened operating hours in response to requests from the national and local governments. Stores in areas where requests had been issued to refrain from serving alcoholic beverages either closed or operated for shorter hours without selling alcoholic beverages. As a result, same-store sales for the fiscal year were 58.3% of the previous year's level.」
Shortened operating hours, requests to refrain from serving alcoholic beverages, closures, or shortened-hours operations without alcohol sales continued after operations resumed, and same-store sales fell to 58.3% of the previous year's level. - FY2021-Q3WorsenedAnnual report
「Since the state of emergency was lifted in May 2020, our group resumed store operations while prioritising the safety of customers and employees and implementing thorough infection-control measures. Although sales gradually recovered after requests from local governments to refrain from operating were lifted, we again shortened operating hours in response to requests from the national and local governments. Stores in areas where requests had been issued to refrain from serving alcoholic beverages have been closed. As a result, same-store sales during the cumulative third quarter were 62.1% of the year-earlier level.」
Requests to shorten operating hours recurred after store operations resumed, and stores in areas where requests had been issued to refrain from serving alcoholic beverages were closed. Same-store sales fell to 62.1% of the year-earlier level, indicating a further expansion of the impact of the pandemic. - FY2021-Q2WorsenedAnnual report
「In the food-service industry in particular, although personal consumption had shown signs of recovery after the state of emergency declared in April 2020 was lifted, in November 2020 Tokyo, Osaka and Aichi prefectures requested that restaurants serving alcohol shorten their operating hours. In January 2021, a second state of emergency was declared, significantly restricting operating hours, particularly in the izakaya sector, which was materially affected.」
As the pandemic spread, requests to shorten operating hours were issued in Tokyo, Osaka and Aichi prefectures in November 2020, followed by a second state of emergency declaration in January 2021, significantly restricting izakaya operating hours. Same-store sales were 64.3% of the year-earlier level, while sales declined 37.8% year on year. - FY2021-Q1MaterialisedAnnual report
「The operating environment in the food-service industry has changed significantly due to requests from local governments to suspend operations to prevent the spread of COVID-19, the loss of inbound demand, and changes in lifestyles such as the spread of teleworking, which have reduced dine-in consumption and increased the use of takeout. Since the lifting of the state of emergency, we resumed store operations while prioritising the safety of customers and employees and implementing thorough infection-control measures. Although sales gradually recovered after requests from local governments to refrain from operating were lifted, same-store sales during the cumulative first quarter were 75.8% of the year-earlier level.」
The decline in dine-in consumption due to requests to suspend operations, the loss of inbound demand and changes in lifestyles continued, and same-store sales remained at 75.8% of the year-earlier level even after store operations resumed. - FY2020MaterialisedAnnual report
「However, against the backdrop of the global spread of COVID-19, all directly operated stores suspended operations and temporarily closed from 4 April to 18 May 2020, in light of various requests from the national and local governments to prevent the spread of infection. From 19 May, operations gradually resumed and stores were operated with thorough infection-control measures in line with measures implemented by the Ministry of Health, Labour and Welfare, local governments and the Japan Food Service Association. However, due to restrictions on operating hours based on requests from local governments and the impact of requests to refrain from going out, same-store sales and customer traffic for the fiscal year were 79.0% and 78.3%, respectively, of the previous fiscal year's levels.」
All stores were temporarily closed from 4 April to 18 May 2020 due to the pandemic, while operating-hour restrictions and requests to refrain from going out continued. The annual results for same-store sales and customer traffic were materially affected. - FY2020-Q3MaterialisedAnnual report
「Sales have declined as a result of lower consumer sentiment due to requests to refrain from going out to prevent the spread of COVID-19, measures such as reduced operating hours and temporary store closures, and other factors. The timing of the end of the pandemic remains uncertain. As a result, the Company's business, financial condition and operating results may be materially affected. Against the backdrop of the global spread of COVID-19, customer traffic in March 2020 declined by 18.9 percentage points from the prior year. In light of the spread of COVID-19 and various requests from the national and local governments, all directly operated stores have suspended operations and temporarily closed since 4 April 2020 to prevent the spread of infection.」
As a newly identified standalone risk, the company describes lower consumer sentiment, reduced operating hours and temporary closures, declining sales, and uncertainty over when COVID-19 will subside. Customer traffic declined by 18.9 percentage points year on year in March 2020, and all directly operated stores have been temporarily closed since 4 April, meaning that the risk has affected actual operations and performance.