Strengthening the Competitiveness and Earnings Base of the 玄品ふぐ Fugu Restaurant Brand

「Due in part to a decline in visits by inbound tourists from mainland China, same-store sales at directly operated restaurants declined 12.0% year on year compared with the first quarter of the previous fiscal year.」

「The various fairs held for milestones such as the 45th-anniversary fair and “Fugu Day,” together with wild tiger pufferfish courses and course meals including eel, contributed to higher sales. However, sales were approximately unchanged from the previous fiscal year, partly due to fewer visits by travelers from mainland China. Company-operated existing-store sales were ¥3,977 million, down 1.0% from the previous fiscal year, while the number of “Genpin” company-operated stores remained unchanged at 41 following 2 new openings and 2 closures.」

「Revenue from directly operated restaurants, including the Group’s core “Genpin” business, was ¥4,105 million, down 0.0% year on year.」

「Strong sales of eel dishes and the highly popular 45th-anniversary fair, among other factors, drove existing-store sales at company-operated stores up 1.7% year on year compared with the first-half cumulative period of the previous fiscal year. At the end of the first-half cumulative period, the number of company-operated stores was 40, down 1 from the end of the previous fiscal year following 1 new opening and 2 closures, while sales from company-operated stores were ¥1,513 million, up 1.2% year on year.」

「Going forward, the Group will pursue the following initiatives: ① further enhance the value of “Genpin” and expand into tiger pufferfish and other ingredients by leveraging the Group’s strengths; ② increase its share of the tiger pufferfish restaurant market, improve the profitability of each store, and make “Genpin” a year-round destination; and ③ expand its franchise business throughout Japan and overseas.」

「Strong sales of eel dishes, the summer-only “Natsuyasumi” course, and wild tiger pufferfish courses, as well as increases in inbound travelers from regions outside Asia, contributed to higher sales. Compared with the first-half cumulative period of the previous fiscal year, existing-store sales at company-operated stores increased 10.9% year on year. At the end of the first-half cumulative period, the number of company-operated stores was 42, down 1 from the end of the previous fiscal year due to a closure, while sales from company-operated stores were ¥1,494 million, up 7.7% year on year.」

「Company-operated existing-store sales were ¥3,847 million, up 30.1% from the previous fiscal year. The number of “Genpin” company-operated stores at the end of the fiscal year was 43, following the transfer of 1 store from the franchise network, the conversion of 2 stores to franchises, and the closure of 1 store in March 2024.」

「Compared with the third-quarter cumulative period of the previous fiscal year, existing-store sales at company-operated stores increased 36.5% year on year. At the end of the third quarter, the number of company-operated stores was 44, following the transfer of 1 store from the franchise network and the conversion of 2 stores to franchises, while sales from company-operated stores were ¥2,706 million, up 33.5% year on year.」

「At the Group’s company-operated stores, including its core “Genpin” business, consumer sentiment was improving as the impact of COVID-19 was nearly subsiding. A significant increase in inbound travelers from Asian regions such as Taiwan and South Korea, as well as from Europe and the United States, together with strong sales of summer eel dishes and reasonably priced wild pufferfish, drove existing-store sales at company-operated stores up 61.4% year on year compared with the second-quarter cumulative period of the previous fiscal year. The number of company-operated stores at the end of the second quarter increased by 1 from the end of the previous fiscal year to 46 through the conversion of a franchise store, while sales from company-operated stores were ¥1,387 million, up 57.8% year on year.」

「At the Group’s company-operated stores, including its core “Genpin” business, dining-out sentiment was improving as restrictions on activities were lifted. Although the number of travelers from mainland China remained low, increases in inbound travelers from Europe and the United States, in addition to Asian regions such as Taiwan, and strong sales of eel dishes launched in earnest the previous year drove existing-store sales at company-operated stores up 52.7% year on year compared with the first-quarter cumulative period of the previous fiscal year. The number of company-operated stores at the end of the first quarter increased by 1 from the end of the previous fiscal year to 46 through the conversion of a franchise store, while sales from company-operated stores were ¥695 million, up 47.5% year on year.」

「Company-operated existing-store sales were ¥3,105 million, up 81.0% year on year. The number of “Genpin” company-operated stores at the end of the fiscal year was 45, following the closure of 3 stores due to redevelopment-related relocations and the addition of 1 store through conversion from a franchise store at the end of March, compared with 47 at the end of the previous fiscal year.」

「The increase in stores selling eel using expertise from the Kagurazaka store, higher sales of high-quality wild tiger pufferfish using the Company’s procurement routes, and favorable customer response to the newly launched “Raamen” contributed to higher sales not only during the Company’s off-peak season but throughout the year. Inbound group visits were also increasing, although recovery remained underway. Compared with the third-quarter cumulative period of the previous fiscal year, existing-store sales at company-operated stores increased 79.2%. The number of company-operated stores at the end of the third quarter remained unchanged from the end of the previous fiscal year at 47, while sales from company-operated stores were ¥2,027 million, up 76.2% year on year.」

「Inbound group visits were also gradually increasing, although recovery remained underway. Compared with the second quarter of the previous fiscal year, existing-store sales at company-operated stores increased 321.5%. The number of company-operated stores at the end of the second quarter remained unchanged from the end of the previous fiscal year at 47, while sales from company-operated stores were ¥879 million, up 288.8% year on year.」

「At the Group’s company-operated stores, including its core “Genpin” business, inbound customers and large-group dining had yet to recover fully after the resumption of normal operations. However, the expansion from May of stores selling eel, based on expertise developed through 5 years of sales at the Kagurazaka store, proved successful and also had a positive effect on delivery and takeaway sales. As a result, compared with the first-quarter cumulative period of the previous fiscal year, existing-store sales at company-operated stores increased 296.5% year on year. The number of company-operated stores at the end of the first quarter remained unchanged from the end of the previous fiscal year at 47, while sales from company-operated stores were ¥471 million, up 261.6% year on year.」

「Company-operated existing-store sales were ¥1,736 million, down 3.4% from the previous fiscal year. The number of “Genpin” company-operated stores at the end of the fiscal year remained unchanged from the end of the previous fiscal year at 47.」

「Compared with the third-quarter cumulative period of the previous fiscal year, the decrease in total operating days, down 20.5%, and the suspension of alcohol service had a significant impact. Although the Company worked to increase sales by strengthening takeaway and delivery offerings, existing-store sales at company-operated stores fell 10.1% year on year.」

「Compared with the second quarter of the previous fiscal year, the decrease in total operating days, down 28.0%, and the suspension of alcohol service had a significant impact. Although the Company worked to increase sales by strengthening delivery and takeaway offerings, existing-store sales at company-operated stores fell 36.4% year on year.」

「In addition to higher sales from strengthening delivery and takeaway offerings, the increase in total operating days and other factors drove a 101.6% year-on-year increase in existing-store sales at company-operated stores. The number of company-operated stores at the end of the first quarter was unchanged from the end of the previous fiscal year at 47, while sales from company-operated stores were ¥130 million, up 94.0% year on year.」

「Company-operated existing-store sales were ¥1,724 million, down 49.1% from the previous fiscal year. The number of “Genpin” company-operated stores at the end of the fiscal year was 47, following the transfer of 1 store from the franchise network and 3 closures, down 2 from the end of the previous fiscal year.」

「The Group’s company-operated stores, including its core “Genpin” business, were almost entirely temporarily closed from 4 April through 31 May due to the impact of COVID-19. After reopening, customer restraint on going out, lower demand for banquet services, requests from local governments to limit customer numbers, and the resurgence of COVID-19 made it difficult to achieve expected peak-season sales. Existing-store sales at company-operated stores therefore fell 50.8% year on year. The number of company-operated stores at the end of the third quarter was 48, following the transfer of 1 store from the franchise network and 2 closures. Sales from company-operated stores were ¥1,283 million, down 51.0% year on year.」

「The Group’s company-operated stores, including its core “Genpin” business, were almost entirely temporarily closed from 4 April through 31 May due to the impact of COVID-19. Following the reopening of operations, customer restraint on going out and lower demand for banquet services also weighed on sales, resulting in a 73.4% year-on-year decline in existing-store sales at company-operated stores.」

「The Group’s company-operated stores, including its core “Genpin” business, were temporarily closed almost entirely, except for 3 stores, from 28 March in Tokyo and from 4 April through 31 May in other regions. With safety in relation to the coronavirus given top priority, the stores gradually resumed operations after implementing infection-prevention and safety measures. As of the end of June, 25 of the 49 company-operated stores in Japan were operating. However, continued customer restraint and restrictions on the number of customers resulted in a 90.9% year-on-year decline in existing-store sales at company-operated stores.」

「Company-operated existing-store sales were ¥3,471 million, down 2.3% from the previous fiscal year. The number of “Genpin” company-operated stores at the end of the fiscal year was 49, following 3 new openings, the transfer of 2 stores from the franchise network to company-operated status, including “Genpin Singapore,” and 2 closures, including those due to the expiration of leases, up 3 from the end of the previous fiscal year.」

「Existing-store sales at company-operated stores, including the Group’s core “Genpin” business, increased 8.7% year on year. The increase reflected the effect of renovations through rebranding, the full operation of the call center to eliminate missed reservations, and improved customer satisfaction as reduced workloads at stores enabled staff to focus more on customers.」

「Existing-store sales at company-operated stores, including the Group’s core “Genpin” business, increased 11.2% year on year, reflecting the success of rebranding initiatives, including store renovations, and ongoing promotional activities. ... As a result, the number of company-operated stores at the end of the second-quarter cumulative period was 49, up 3 from the end of the previous fiscal year, following 2 new openings, the transfer of 2 stores from the franchise network, including “Genpin Singapore,” following their conversion into consolidated subsidiaries, and 1 closure due to the expiration of a lease. Sales from company-operated stores were ¥1,272 million, up 12.2% year on year, and customer visits increased 17.3% from the previous fiscal year.」

「Existing-store sales at company-operated stores, including the Group’s core “Genpin” business, increased 9.8% year on year as the rebranding initiatives gradually began to take effect. ... As a result, the number of company-operated stores at the end of the first quarter was 48, up 2 from the end of the previous fiscal year. Sales from company-operated stores were ¥662 million, up 11.3% year on year, and customer visits increased 16.5% year on year.」

「“Genpin” company-operated existing-store sales were ¥2,256 million, down 3.8% year on year, while the number of company-operated stores at the end of the third quarter was 46, up 1 from the end of the previous fiscal year. Sales from company-operated stores were ¥2,385 million, down 2.7% year on year.」

「Sales had been strong as a result of proactive initiatives to attract inbound customers, the launch of “はも” sales at all stores in Japan, the establishment of “大とらふぐ” as a core product, and the introduction of online reservations through the company’s website. However, from July to September, natural disasters including torrential rain, typhoons, earthquakes, and extreme heat, temporary store closures and a temporary decline in inbound customers resulting from the closure of Kansai International Airport had an impact. Despite this, same-store sales at directly operated “玄品” stores increased 3.8% year on year. As of the end of the second quarter, the number of directly operated “玄品” stores was 46, an increase of 4 from the end of the same quarter of the previous year, following the transfer of “玄品　善光寺口” from an area franchise to directly operated status. Sales at directly operated stores were ¥1,133 million, up 5.0% year on year.」

「Same-store sales at directly operated stores in the core “玄品ふぐ” business and other businesses increased 11.0% year on year, supported by the success of measures to address the summer off-season.」

「Same-store sales at directly operated stores serving the core “玄品ふぐ” business and other fugu products increased 5.8% year on year. This reflected higher average spending per customer from sales of the high-value-added “天然とらふぐ” and “大とらふぐ,” as well as increased customer visits during the off-season following the launch of new products such as “はも” and successful efforts to attract inbound customers, despite operating days decreasing by a cumulative 242 days due to employee training and other initiatives.」

「Same-store sales at directly operated stores handling the core “玄品ふぐ” business and other products were 108.4% of the previous-year quarter during the cumulative third-quarter period. This reflected an increase in customer visits throughout the year, driven by the launch of the new “はも” product to increase customer traffic during the off-season, favorable customer response to the high-value-added “天然ふぐ” and “大とらふぐ” products during the peak season, and measures to attract inbound customers, despite store holidays increasing by a cumulative 217 days due to renovations and training.」

「Same-store sales at directly operated stores were 105.5% of the previous-year quarter. Although operating days decreased by a cumulative 217 days due to increased internal training and other factors, customer visits increased through promotions for limited summer menus, the introduction of new ingredients such as “はも” and eel, and measures to attract inbound customers. Average spending per customer also increased, as “天然ふぐ” and “大とらふぐ” were highly rated, particularly by regular and inbound customers.」

「Sales at existing directly operated stores exceeded the previous-year quarter by 1.9%, despite the number of operating days decreasing by 97 from the same quarter of the previous year due to store renovations and an increase in store closing days resulting from enhanced internal training aimed at staff development. This was also supported by an increase in inbound customers and other factors.」

「During the fiscal year, customer visits to existing stores reached 106.9% of the previous year. In the franchise business, we also continued nationwide expansion under the area franchise system, opening 6 stores during the fiscal year: the new stores “那覇國際通里の関,” “浜松乃関,” “善光寺口乃関,” and “富山乃関,” as well as “京都駅前の関” and “千葉の関.”」

「As of the end of the consolidated third-quarter period, the number of directly operated “玄品ふぐ” stores remained unchanged at 41 from the end of the previous consolidated fiscal year. Sales at directly operated stores during the cumulative third-quarter period were ¥2,121 million, down 1.0% year on year, while same-store sales at directly operated 玄品ふぐ stores increased 2.4%.」

「As of the end of the consolidated second-quarter period, the number of directly operated “玄品ふぐ” stores remained unchanged at 41 from the end of the previous consolidated fiscal year. Sales at directly operated stores during the cumulative second-quarter period were ¥967 million, down 1.7% year on year, while same-store sales at directly operated 玄品ふぐ stores increased 2.0%.」

「To accelerate growth, we are actively strengthening frontline store operations, thoroughly reviewing products and quality, and investing in business expansion.」

「We will improve business-format competitiveness and establish a strong earnings base by strengthening operations at “玄品ふぐ” stores, developing new products and improving quality, continuing store renovations, introducing new measures to address the off-season, strengthening efforts to capture inbound demand, and expanding franchises nationwide.」