Low-Cost Operations and Lowering the FL Cost Ratio

「The new system updates and visualizes the theoretical cost of each recipe in real time each day based on daily purchase prices. By linking master data for purchased ingredients with sales data, it now enables profitability analysis by menu item.」

「The cost-management system newly introduced in the current fiscal year, the 26th fiscal year, enables timely cost management. We are linking menu recipes by business format with inventory data. Once this work is complete, data entry and reporting previously performed manually will be automated, creating a structure that allows greater focus on store operations.」

「To improve the accuracy of cost management, we will link master data for purchased ingredients with sales data and improve the accuracy of real-time theoretical food-cost ratios. By visualizing recipe revisions, over-portioning, order errors and food waste through inventory management, we will work to optimize ingredient costs.」

「For productivity improvements, we are actively pursuing DX and automation, including at existing stores. This includes enhancing floor service through table-ordering systems, managing service times through kitchen displays, and preventing service delays, and these initiatives will continue.」

「We recognize the need to provide further added value after improving productivity through operational efficiency in order to reduce FL costs, a major cost in the food-service industry comprising total ingredient costs and labor costs.」

「Amid rising ingredient and energy costs and labor shortages, we are pursuing value engineering in the menus we offer, reviewing store QSC checks, introducing cash registers with automatic change-dispensing functions and installing entry-reception kiosks, among other measures, to reduce staffing requirements and improve management efficiency through DX.」

「At Italian Dining Donna, we will improve efficiency in manufacturing and logistics, centered on in-house-produced fresh pasta and sauces, to absorb higher procurement costs. We will also increase the proportion of processed ingredients produced in-house through menu revisions, taking a comprehensive approach to the risk of rising ingredient costs.」

「The effects of progressing with the closure of 10 unprofitable stores where recovery was not expected due to the significant impact of the COVID-19 pandemic are becoming evident. We will continue working to reduce fixed costs in order to lower the break-even point, or break-even sales.」

「We will continue efforts to lower the break-even point across the company by promoting integrated regional operations, while working to improve profitability.」

「We have treated labor-hour management aligned with reduced operating hours, rent-reduction negotiations, and cost controls through reviews of routine expenses and contract terms as priority issues and have advanced these initiatives. Although this is deeply regrettable, we are also closing unprofitable stores as a cost-reduction measure.」

「We continue to pursue cost reductions, including reducing labor costs and electricity charges associated with opening and closing stores, using value engineering on key ingredients, introducing weekly menu changes to reduce food waste, cutting logistics expenses and negotiating rent reductions, with the aim of controlling fixed costs.」

「By operating 4 stores within the facility, including the okonomiyaki restaurant Kotekagaeshi and the pasta and cake restaurant Ducky Duck, and managing them as an integrated operation, we are improving efficiency and strengthening controls on labor costs. Much of the in-store equipment was transferred from stores that had previously closed, keeping investment down.」

「We position the production division as a cost center and will work to improve productivity through labor-saving equipment and the introduction of systems.」

「As a result of strengthening existing stores and controlling expenses previously associated with new store openings, the ordinary profit margin rose from 4.0% to 5.1% on a quarterly basis.」

「To prepare for the risk of rising ingredient costs, we will invest in and actively operate cost-management software and work to develop high-value-added products through rapid, flexible recipe development.」

「Although performance has remained weak to date, the fourth quarter is the final quarter, so in line with the proverb “measure your income and control your spending,” we will prioritize cost improvements, advance operational efficiency and work to improve performance.」

「We will increase the in-house production rate and the proportion of off-premises sales at our own production facilities, namely Confectionery, which produces cakes, baked goods and bread; Commissary, which produces fresh noodles, sauces and dressings; and Tsubakiya Roaster, which roasts coffee beans, and aim to reduce FL costs as a percentage of sales. FL costs comprise cost of sales and personnel expenses, or costs related to FOOD and LABOR.」

「We will increase the in-house production rate at our own production facilities, namely Commissary, which produces fresh noodles, sauces and dressings; Confectionery, which produces cakes and baked goods; and Tsubakiya Roaster, which roasts coffee beans, and aim to reduce FL costs as a percentage of sales. FL costs comprise cost of sales and personnel expenses, or costs related to FOOD and LABOR.」