Improving the cost structure and closing unprofitable domestic food-service locations

「生産性向上、固定費削減等の継続した取り組みを進めた結果、増収増益となりました。」

「Regarding the merchandising structure supporting the food-service and home-delivery businesses, including product development, procurement, logistics and manufacturing, we will continue to review and improve it, pursue differentiation from competitors and reform the earnings structure, and develop a business-format portfolio that addresses risks.」

「生産性向上、固定費削減等の継続した取り組みを進めた結果、増収増益となりました。」

「While strongly advancing the development of a growth platform through fixed-cost reductions, low-cost operations and the development of formats addressing customer needs, including izakaya, yakiniku, takeout and delivery, and formats providing venues for special occasions, as well as the development of the SUBWAY business launched in the previous consolidated fiscal year, we will also continue to establish low-cost operations and review and improve the merchandising structure supporting the food-service and home-delivery businesses, including product development, procurement, logistics and manufacturing. By pursuing differentiation from competitors and reform of the earnings structure, we will develop a business-format portfolio that addresses risks.」

「Revenue growth, along with productivity improvements and fixed-cost reductions implemented to date, has steadily improved performance in the domestic food-service business.」

「Although cash flow from operating activities declined from the same period of the previous year, the main reasons were a decrease in impairment losses, an increase in the change in trade receivables and a decrease in the change in unpaid consumption taxes and other items, despite an increase in income before taxes and other adjustments. As described in “(1) Operating Results,” operating income and loss improved significantly as a result of strongly advancing fixed-cost reductions implemented to date, developing formats that address customer needs, including izakaya, yakiniku, takeout and delivery, and formats providing venues for special occasions, and establishing low-cost operations.」

「In the domestic food-service business, we opened 3 new locations and closed 8, bringing the total number of locations to 342 at the end of the quarter. As restrictions on activities were lifted following the reclassification of COVID-19 under the Infectious Diseases Control Law from Category 2-equivalent to Category 5, the domestic food-service business gradually recovered toward pre-pandemic levels, and performance steadily recovered through increased revenue, productivity improvements implemented to date and fixed-cost reductions.」

「As restrictions on activities were lifted following the reclassification of COVID-19 under the Infectious Diseases Control Law from Category 2-equivalent to Category 5, the domestic food-service business gradually recovered toward pre-pandemic levels, and performance steadily recovered through increased revenue, productivity improvements implemented to date and fixed-cost reductions.」

「With COVID-19 vaccinations progressing steadily in Japan, and economic activity in the food-service industry gradually recovering through measures such as the easing of outdoor mask-wearing and limits on the number of people at gatherings, as well as the removal of entry restrictions, the Group will continue to promote fixed-cost reductions in the domestic food-service business, while」

「To address this situation, we will continue to strengthen our resilience to a decline in sales by reducing fixed costs through the closure of unprofitable locations, negotiations to reduce rents and expense reductions, while」

「In the domestic food-service business, which was most severely affected by the spread of COVID-19, as efforts to bring the pandemic under control accelerated, we continued to strengthen our resilience to a decline in sales by reducing fixed costs through the closure of unprofitable locations, negotiations to reduce rents and expense reductions, while」

「To address this situation, we reduced fixed costs through the closure of unprofitable stores, negotiations for rent reductions and expense reductions, strengthening resilience to a smaller sales scale. We also made strong progress in establishing a growth platform by converting izakaya-format stores to Yakiniku no Watami and accelerating the opening of Karage no Tensai stores, which are primarily focused on takeout and delivery under a franchise model. As a result, the segment loss in this business improved from ¥2,167 million in the first quarter of the current consolidated fiscal year and ¥1,682 million in the second quarter to ¥864 million in the third quarter.」

「In the domestic food-service business, we opened 27 new locations and closed 12, bringing the total number of locations to 446 at the end of the second quarter, including locations converted from izakaya formats. To address this situation, we will continue to strengthen our resilience to a decline in sales by reducing fixed costs through the closure of unprofitable locations, negotiations to reduce rents and expense reductions, while」

「To address this situation, we will continue to strengthen our resilience to a decline in sales by reducing fixed costs through the closure of unprofitable locations, negotiations to reduce rents and expense reductions, while」

「To address this situation, we strengthened our resilience to a decline in sales by reducing fixed costs by approximately ¥10 billion through the closure of 159 unprofitable locations, the transfer of assets at 2 domestic food-service factories, negotiations to reduce rents and expense reductions.」

「This was attributable to the effects of measures including the reduction in losses from closing unprofitable locations in addition to the previously mentioned recovery in same-store revenue; fixed-cost reductions through the integration and consolidation of domestic food-service factories, including the Kansai and Sagamihara factories, through asset transfers and other measures; the conversion of izakaya locations to the 「焼肉の和民」 format, with 15 locations at the end of the cumulative third quarter; and accelerated openings of 「から揚げの天才」 locations, a franchise model focused on takeout and delivery, with 77 locations at the end of the cumulative third quarter.」

「In the domestic food-service business, we opened 54 new locations and closed 91, bringing the total number of locations to 454 at the end of the quarter.」

「In the domestic food-service business, we opened 17 new locations and closed 69, bringing the total number of locations to 439 at the end of the quarter.」

「In the domestic food-service business, we opened 37 new locations and closed 26, bringing the total number of locations to 491 at the end of the consolidated fiscal year, compared with 480 in the previous fiscal year. We will fundamentally review the merchandising structure supporting the food-service businesses, including product development, procurement, logistics and manufacturing, to differentiate ourselves from competitors and reform the earnings structure.」

「In the domestic food-service business, we opened 30 new locations and closed 9, bringing the total number of locations to 501 at the end of the quarter. Although same-store revenue was 99.5% of the previous year's level and same-store customer numbers were 100.3%, revenue increased while profit declined due to higher costs at existing locations.」

「In the domestic restaurant business, we opened 16 new stores and closed 7 stores, bringing the number of stores at the end of the current quarter's consolidated accounting period to 489. The effects of format conversions and other measures resulted in sales at existing stores of 100.1% year on year and customer traffic at existing stores of 101.0% year on year, and revenue and profit increased. As a result, revenue in the domestic restaurant business was ¥23,364 million, or 103.0% of the same period of the previous year, and the segment loss was ¥32 million, compared with a loss of ¥67 million in the same period of the previous year.」

「In the domestic food-service business, we opened 8 new locations and closed 3, bringing the total number of locations to 485 at the end of the quarter. The effects of format changes and other initiatives lifted same-store revenue to 100.5% of the previous year's level and same-store customer numbers to 100.8%.」

「In the domestic food-service business, we opened 21 new locations. At the same time, we closed 9 locations, bringing the total number of locations to 479 at the end of the quarter. Same-store revenue was 101.5% of the previous year's level and same-store customer numbers were 101.6%. Although profitable locations were closed, profitability improved as a result of the effects of format changes and improvements in merchandising.」

「In the domestic food-service business, we opened 10 new locations. At the same time, we closed 9 locations, bringing the total number of locations to 468 at the end of the quarter. Same-store revenue was 100.6% of the previous year's level and same-store customer numbers were 100.7%. Although profit declined due to the closure of profitable locations and higher personnel costs, profitability improved as a result of the effects of format changes and improvements in merchandising.」

「In the domestic food-service business, we closed 8 locations, bringing the total number of locations to 466 at the end of the quarter. Through revenue-generation measures, including changes in business formats, and improvements to store operations, same-store revenue was 102.1% of the previous year's level and same-store customer numbers were 102.4%.」

「In the domestic food-service business, we opened 11 new locations. At the same time, we closed 23 locations, bringing the total number of locations to 467 at the end of the consolidated fiscal year. Through revenue-generation measures, including changes in business formats, and improvements to store operations, same-store revenue reached 105.3% of the previous year's level, exceeding the previous year's result for a second consecutive year, and the business recorded increases in both revenue and profit.」

「In the domestic food-service business, we opened 9 new locations. At the same time, we closed 14 locations, bringing the total number of locations to 474 at the end of the quarter. Same-store revenue was 105.8% of the previous year's level, and same-store customer numbers were 105.8%. We made progress toward a return to profitability through revenue-generation measures, including changes in business formats, and improvements to store operations. As a result, revenue from the domestic food-service business was ¥36,315 million, up 2.8% year on year, and segment profit was ¥278 million, compared with a loss of ¥471 million in the same period of the previous year.」

「In the domestic food-service business, we closed 12 locations, bringing the total number of locations to 467 at the end of the quarter. Same-store revenue was 107.2% of the previous year's level, and same-store customer numbers were 107.0%. We made progress toward a return to profitability through revenue-generation measures, including changes in business formats, and improvements to store operations. As a result, revenue from the domestic food-service business was ¥23,496 million, up 4.6% year on year, and the segment loss was ¥84 million, compared with a loss of ¥867 million in the same period of the previous year.」

「In the domestic food-service business, we closed 6 locations, bringing the total number of locations to 473 at the end of the quarter. Same-store revenue was 107.6% of the previous year's level, and same-store customer numbers were 106.3%. We implemented measures to generate revenue, including changes in business formats, as well as measures to improve profitability through better store operations, making progress toward a return to profitability.」

「In the domestic food-service business, we opened 6 new locations. At the same time, we closed 11 locations, bringing the total number of locations to 487 at the end of the third quarter. Same-store revenue was 101.9% of the previous year's level, and same-store customer numbers were 100.0%. We continued to improve store operations and implement cost-reduction measures and other initiatives, making progress toward a return to profitability. As a result, revenue from the domestic food-service business was ¥35,854 million, down 1.3% year on year, and the segment loss was ¥481 million, compared with a loss of ¥1,546 million in the same period of the previous year.」

「In the domestic food-service business, we opened 3 new locations. At the same time, we closed 13 locations, bringing the total number of locations to 484 at the end of the second quarter. Same-store revenue was 101.8% of the previous year's level, and same-store customer numbers were 100.5%. We also continued to implement cost-reduction measures and other initiatives, making progress toward a return to profitability.」

「In the domestic food-service business, we opened 1 new location. At the same time, we closed 10 locations, bringing the total number of locations to 484 at the end of the quarter. Same-store revenue and same-store customer numbers were both 100.3% of the previous year's levels. We also continued to implement cost-reduction measures and other initiatives, making progress toward a return to profitability.」

「To improve profitability at the store level, the closure of 72 unprofitable locations had been completed by the end of the consolidated fiscal year. In addition, the cost-reduction plan of ¥3,500 million announced at the beginning of the fiscal year was achieved above target, and improvement of the earnings structure is steadily progressing.」