Rebuilding the Business Portfolio for the Post-COVID Environment

「During the consolidated fiscal year, the company implemented the following initiatives, primarily: “Evolution of intrinsic value and expansion of growth areas.”」

「Developing new formats that embody the evolution of intrinsic value and expanding the brand portfolio」

「This initiative was intended to strengthen the portfolio with a view to the post-pandemic environment, using “everyday,” “established favorites” and “strong local ties” as keywords, while pursuing further business expansion in the United States. In Japan, as a business supporting this growth strategy, the company acquired all issued shares of 一幻フードカンパニー, which operates the ebi soba restaurant Ichigen, a leading ramen restaurant in Sapporo, Hokkaido, on 1 October 2024, making it a consolidated subsidiary.」

「“Wildflower's joining the group is fully aligned with this strategy.” “In addition, we decided to acquire the company's shares because we determined that the transaction would enhance the group's corporate value by further developing its noodle-based business, a staple everyday-food format, strengthening its brand portfolio by nurturing next-generation core brands, and creating synergies through intra-group franchising and other measures.”」

「Regarding new store openings, the company opened GOTTA, a new American dining concept developed by Create Brand Lab, a specialist organization responsible for developing exciting new formats and concepts. It also opened stores primarily under core brands such as the all-you-can-eat shabu-shabu restaurant Shabu Sai and casual bar Gono Go. In addition, it actively opened outsourced-operation stores, including restaurants located at golf courses and stores operated in collaboration with JA Zen-Noh. As a result, the group opened 6 new stores, changed the formats of 4 stores and closed 11 stores, mainly due to contract expirations. The consolidated store count, including outsourced-operation stores and others, was 1,104 as of the end of the first quarter.」

「As a result, the Group opened 34 new stores, converted 21 stores to different formats, and exited 70 stores, primarily locations whose contracts had expired and unprofitable stores, bringing the consolidated store count, including contract-operated stores and others, to 1,109 at the end of the fiscal year.」

「Regarding new store openings, the company resumed investment aimed at achieving “quality and quantity,” focusing on core brands including the all-you-can-eat shabu-shabu restaurant Shabu Sai, MACCHA HOUSE, seafood izakaya Isomaru Suisan, casual izakaya Gono Go, sesame soba restaurant Yuzuru, yakiniku restaurant Manya, bakery Sunvalley and tsukemen restaurant TETSU. At the same time, it actively opened franchise locations in Hong Kong without additional investment and outsourced-operation stores, including restaurants located at golf courses.」

「Regarding new store openings, the company opened stores primarily under its core group brands, including the all-you-can-eat shabu-shabu restaurant Shabu Sai, MACCHA HOUSE, the casual izakaya Gono Go, sesame soba restaurant Yuzuru, yakiniku restaurant Manya and bakery Sunvalley. It also actively opened outsourced-operation stores, including restaurants located at golf courses.」

「Regarding new store openings, the company made full use of the group's strength in adapting to change. It opened stores with high investment efficiency, primarily in its contract, service-area and parking-area businesses, as well as environmentally conscious stores reflecting an awareness of the SDGs. It also changed store formats to provide higher-value-added services, promoted intra-group franchising by leveraging synergies, and changed formats and transferred businesses within the group. As a result, the group opened 24 new stores, changed the formats of 20 stores and closed 36 stores. The consolidated store count, including outsourced-operation stores and others, was 1,025 as of the end of the third quarter.」

「The company opened new stores with high investment efficiency, primarily in its contract, service-area and parking-area businesses, as well as environmentally conscious stores reflecting an awareness of the SDGs. It also changed store formats to provide higher-value-added services, promoted intra-group franchising by leveraging synergies, and transferred businesses within the group.」

「Implemented new openings with high investment efficiency, primarily in the contract and service-area businesses, format conversions aimed at providing higher value-added services, and initiatives including the introduction of food trucks.」

「We aim to achieve sustainable growth as a “winner” in the foodservice industry by identifying changes in customers' new demands and using our group's distinctive ability to respond to change to rebuild an efficient portfolio suited to those demands. Specifically, from a business-format perspective, we will shift our focus from the previous emphasis on “extraordinary experiences and corporate entertaining demand” to “everyday occasions (plus something extra), families and friends, low prices, and specialization.” From a location perspective, we will shift our focus from “central urban areas, prime locations, and office buildings” to “suburban and residential areas,” rebuilding the portfolio through new combinations of business formats and locations.」