Weak Domestic Same-Store Sales and the Impact of Closures Due to Natural Disasters

「New store openings progressed smoothly, same-store sales remained solid, sales of seasonal products such as "Futo Tsukemen" and "Miso Akamaru," and increased media exposure attracted customers」

「This enabled the Company to pass on price increases commensurate with higher costs resulting from soaring raw-material prices and rising personnel expenses without compromising product value, raising average spending per customer by approximately 15% compared with March 2021.」

「Inbound demand recovery and price revisions have raised average spending per customer by approximately 15% compared with the fiscal year ended March 2021.」

「The legal classification of COVID-19 was changed, and the recovery in foot traffic and inbound demand following the lifting of border controls contributed to sales.」

「The legal classification of COVID-19 was changed, and the recovery in foot traffic and inbound demand following the lifting of border controls contributed to sales.」

「Restrictions related to COVID-19 had been lifted from March 2022, and inbound demand was recovering as foot traffic recovered and border controls were eased. However, customer traffic during evening and late-night hours had not recovered sufficiently, and sales recovered only gradually.」

「Although restrictions including reduced operating hours under the priority preventive measures related to COVID-19 were absent from March 2022, sales recovered only gradually because of the increase in infections from late July through the end of August and the insufficient recovery in customer traffic during evening and late-night hours.」

「From March 2022, restrictions including reduced operating hours under the priority preventive measures to prevent the spread of disease were lifted, and customer traffic recovered solidly until the long Golden Week holiday. However, because of price increases resulting from inflation and other factors, customer traffic during evening and late-night hours had not recovered sufficiently despite the absence of restrictions, and sales recovered only gradually.」

「From October of that year, the state of emergency was lifted as the number of infections declined, and sales recovered solidly. However, as infections involving variants rapidly resurged from around late December, restrictions including reduced operating hours were imposed again through mid-March」

「From October of that year, the state of emergency was lifted as the number of infections declined, and sales recovered solidly. However, the Omicron variant, believed to be highly transmissible, began spreading from late December, and unstable conditions have continued.」

「In Japan, the Company was unable to offset the impact of store closures in the first quarter, while overseas it was also unable to offset the impact of prolonged stagnation in economic activity in various countries. As a result, net sales were ¥7,072 million, down 52.1% year on year.」

「From February 2020, when the impact of the spread of COVID-19 became pronounced, both new and existing stores performed weakly. As a result, net sales for the first-quarter consolidated cumulative period were ¥967 million, down 76.0% year on year.」

「After entering the fourth quarter, both new and existing stores performed weakly from February 2020, when the impact of the spread of COVID-19 became pronounced. As a result, net sales for the consolidated fiscal year were ¥16,282 million, up 3.1% year on year.」

「During the year-end and New Year period, 67 stores, mainly Ippudo locations, were closed from 31 December through 2 January to promote work-style reform for employees. Nevertheless, aided by the promotional activities described above, newly opened stores continued to perform solidly despite the consumption tax increase in October, while customer numbers at existing stores increased year on year, resulting in net sales of ¥12,691 million, up 7.7% year on year.」

「In addition to the new store openings described above, the June price revision for products under the Ippudo brand continued to raise average spending per customer without causing a decline in customer numbers. Customer numbers also increased as a result of promotional campaigns such as "Beer Ramen" and "Respect for the Aged Day," as well as the launch of strategic seasonal and regionally limited products, and same-store sales remained solid」

「Domestic store operations sales increased 4.9% year on year, as same-store sales also recovered as a result of various initiatives.」

「While sales at new stores were in line with plan and same-store sales were beginning to recover, closures due to natural disasters from June through September, among other factors,」

「As a result, revenue for the cumulative second quarter of the consolidated fiscal year was ¥7,664 million, up 1.9% year on year, as sales at new stores progressed as planned, but same-store sales remained weak and stores were closed due to natural disasters between June and September, among other factors.」