Cancellations of paying restaurants exceeding expectations

「Although the process of addressing restaurants using the specific agency with a high cancellation rate that had remained was nearly complete,」

「Cancellations exceeding expectations occurred in some agency channels, limiting revenue growth to +4.4% year on year. The process of addressing agency channels that had previously had relatively high cancellation rates was also nearly complete, and cancellations were expected to settle down.」

「Under these circumstances, the number of Omise Members under the fixed-price and usage-based plans in the food-service support business increased from 7,003 to 7,155 during the interim accounting period from October 2024 to March 2025, as the Company made progress in removing stores acquired through certain agencies that had continued to have high cancellation rates.」

「Under these circumstances, the number of Omise Members under the fixed-price and usage-based plans in the food-service support business decreased from 6,958 to 6,653 during the second quarter cumulative period from October 2023 to March 2024, owing to the impact of stores acquired through certain agencies that continued to have high cancellation rates.」

「During the cumulative first-quarter period from October to December 2023, the number of Shop Members (fixed + usage-based) declined from 6,958 to 6,725 due to the impact of restaurants remaining with a specific agency that had a high cancellation rate.」

「During the fiscal year, the number of paying participating restaurants under the Shop Membership (fixed) plan, the company's most important KPI, continued to trend downward due to the impact of a specific agency with a high cancellation rate.」

「As a result, revenue from the FRM business, including the specific agency, has continued to trend downward because of that agency's high cancellation rate. However, revenue has continued to show a net increase in the focus agency channel and direct-sales channel, excluding that specific agency.」

「With respect to cancellations, irregular cancellations due to restaurant closures and other factors occurred among trial contracts for large corporate customers, including izakaya chains, and certain agencies had high cancellation rates. As a result, the number of participating restaurants declined by 262 from the end of the previous fiscal year to the end of the first-quarter accounting period, to 6,659.」

「With respect to cancellations, the low retention rate of certain relatively inexpensive plans within the Shop Membership (fixed) plans, which have limited customer-referral effectiveness despite their low price, also affected the overall number of cancellations, resulting in more cancellations than before the impact of COVID-19. As a result, the number of paying participating restaurants under the Shop Membership (fixed) plan declined by 1,429 from the end of the previous fiscal year to the end of the fiscal year, to 6,921.」

「With respect to cancellations, the low retention rate of certain relatively inexpensive plans within the Shop Membership (fixed + usage-based) plans, which have limited customer-referral effectiveness despite their low price, also affected the overall number of cancellations, resulting in more cancellations than before the impact of COVID-19.」

「With respect to cancellations, irregular cancellations due to restaurant closures and other factors occurred among trial contracts for large corporate customers, including izakaya chains. As a result, the number of participating restaurants declined by 802 from the end of the previous fiscal year to the end of the second-quarter accounting period, to 7,548.」

「With respect to cancellations, irregular cancellations due to restaurant closures and other factors occurred among trial contracts for large corporate customers, including izakaya chains. As a result, the number of participating restaurants declined by 445 from the end of the previous fiscal year to the end of the first-quarter accounting period, to 7,905.」

「Irregular cancellations due to restaurant closures and other factors occurred among trial contracts for large corporate customers, including izakaya chains. As a result, the number of participating restaurants declined by approximately 1,380 from the end of the previous fiscal year to the end of the fiscal year, to 8,350. Of this 1,380 decrease, 1,172 were attributable to a decline in the aforementioned trial contracts.」

「The maturity cancellation rate temporarily increased following the first state of emergency declared in 2020, but returned to the normal level of approximately 2% through measures such as waiving monthly service fees. Separately from the above maturity cancellations, some restaurants were forced to close before their contracts reached maturity due to the impact of the state of emergency declared in response to COVID-19, temporarily increasing the number of irregular cancellations.」

「Although approximately 570 trial contracts for major corporate customers were lost due to unusual cancellations, regular contracts increased by approximately 240, limiting the decline in the total number of contracted restaurants to approximately 330 from the end of the previous fiscal year to the end of the second-quarter accounting period.」

「As a result of these measures, the number of participating restaurants increased by an average of approximately 140 or more per month from July 2020 onward, except in October 2020, when approximately 500 irregular cancellations occurred in one-off trial contracts for large corporate customers (Note 1) (Note 2).」

「The maturity cancellation rate temporarily increased as the operating environment for restaurants deteriorated due to the impact of the state of emergency declared in response to COVID-19, but returned to the normal level of approximately 2% from July 2020 through measures such as waiving monthly service fees.」