Operating Responses to COVID-19

「We also expanded some collaboration events expected to attract customers from permanent locations to food-service stores, with the aim of increasing revenue. As a result, operating income for the cumulative third quarter was ¥96 million and ordinary income was ¥101 million. We are continuing to implement various measures to reduce costs and increase revenue, working to resolve these material events and other matters at an early stage.」

「To address this situation, we began selling new menu items such as sweets and BBQ plans, and developed new business models, including by strengthening event-based merchandise sales at stations, commercial facilities and other locations without permanent stores.」

「In this situation, to secure stable revenue under any conditions, we developed new menu items such as sweets and expanded collaboration events held at specialty stores expected to attract customers to some food-service locations, with the aim of increasing revenue.」

「To address this situation, we began selling new menu items such as sweets and BBQ plans, and developed new business models, including by strengthening event-based merchandise sales at stations, commercial facilities and other locations without permanent stores.」

「We are also promoting digital transformation and working to improve customer satisfaction and address labor shortages, including by introducing contactless ordering systems.」

「In the food-service business, after the declaration of a state of emergency and priority preventive measures related to the spread of COVID-19 were lifted last autumn, we generally restored our stores' operating hours to normal and resumed serving alcoholic beverages. As a result, customer traffic gradually increased and same-store sales recovered proportionately.」

「While fully cooperating with requests to reduce operating hours and refrain from serving alcoholic beverages during declarations of a state of emergency and priority preventive measures, from October 2021, after those declarations and measures were lifted, we returned to normal operating hours and resumed serving alcoholic beverages. As a result, customer traffic gradually increased and same-store sales recovered proportionately.」

「In this situation, we are considering and pursuing the development of a business model capable of generating a certain level of revenue even while the disease remains uncontrolled, including by strengthening takeaway and delivery operations and gradually introducing contactless ordering systems as business initiatives designed for consumers' new lifestyles.」

「In this situation, we are considering and pursuing the development of a business model capable of generating a certain level of revenue even while the disease remains uncontrolled, including by strengthening takeaway and delivery operations and gradually introducing contactless ordering systems as business initiatives designed for consumers' new lifestyles.」

「To address this situation, we are pursuing management initiatives with a stronger focus on cash flow based on three pillars: improving sales, controlling costs and strengthening our financial foundation. Specifically, we have begun implementing, in sequence, measures including store operating initiatives designed for consumers' new lifestyles, continued operation of takeaway, delivery and e-commerce services, continued reductions in executive compensation, use of various subsidies including employment adjustment subsidies, receipt of cooperation payments for complying with requests to reduce operating hours, requests for reductions in rent payable, use of systems allowing deferred payment of taxes and social insurance premiums under emergency economic measures, the accelerated closure of unprofitable stores, and other cost-cutting measures.」

「During the current third quarterly accounting period, we continued operating takeaway, delivery and e-commerce services as business initiatives designed for consumers' new lifestyles, and captured demand generated by the government's Go To Campaign. We also held collaboration cafés featuring IP content at certain directly operated stores, and those stores performed well. This indicates that demand for experiential consumption, meaning consumer behavior focused on experiences suited to individual tastes and preferences, remained high even in the above environment, and that our business development leveraging our strength in IP content has been successful.」

「During the current second quarterly accounting period, we began operating takeaway, delivery and e-commerce services as business initiatives designed for consumers' new lifestyles.」

「Thereafter, in May of the same year, the Company gradually resumed operations within the scope of requests from the government and local authorities. At stores that resumed operations, it thoroughly implemented hygiene management and measures to prevent the spread of infection, while strengthening takeaway sales.」

「In response to the spread of COVID-19 and the declaration of a state of emergency issued by the Japanese government on 7 April 2020 under Article 32, Paragraph 1 of the amended Act on Special Measures for Pandemic Influenza and New Infectious Diseases Preparedness and Response, we took measures to prevent the spread of the disease, including canceling certain events, reducing store operating hours and temporarily closing stores.」