Rebuilding domestic food-service brands and changing business formats

「「ミライザカ」、「鳥メロ」などの居酒屋業態、「焼肉の和民」、「かみむら牧場」などの焼肉業態、「オリーブチキン」などのテイクアウト・デリバリー業態、「TGIフライデーズ」等「ハレの場」を提供する業態、そして前々連結会計年度より開始したSUBWAY事業の展開など様々な業態を展開し、成長基盤の整備を強力に進める」

「In Japan, the company aims to expand its restaurant business by further addressing customers' diverse needs through a range of formats, including izakaya, yakiniku, takeout and delivery, formats offering venues for special occasions, and directly operated and franchised SUBWAY locations.」

「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.」

「In response to changes in the economic environment and customer needs, the company operates a range of formats, including izakaya formats such as MIRAIZAKA and Torimero, yakiniku formats such as Yakiniku no Watami and Kamimura Farm, takeout and delivery formats such as Karaage no Tensai and Olive Chicken, and formats offering venues for special occasions, such as TGI Fridays. As a result of making strong progress in establishing a growth platform, the company achieved higher revenue and higher profit.」

「In response to changes in the economic environment and customer needs, the company operates a range of formats, including izakaya formats such as MIRAIZAKA and Torimero, yakiniku formats such as Yakiniku no Watami and Kamimura Farm, takeout and delivery formats such as Karaage no Tensai and Olive Chicken, and formats offering venues for special occasions, such as TGI Fridays. As a result of making strong progress in establishing a growth platform, the company achieved higher revenue and higher profit.」

「In response to changes in the economic environment and customer needs, the company operates a range of formats, including izakaya formats such as MIRAIZAKA and Torimero, yakiniku formats such as Yakiniku no Watami and Kamimura Farm, takeout and delivery formats such as Karaage no Tensai and Olive Chicken, and formats offering venues for special occasions, such as TGI Fridays. As a result of making strong progress in establishing a growth platform, the company achieved higher revenue and higher profit.」

「In response to changes in the economic environment and customer needs, the company operates a range of formats, including izakaya formats such as MIRAIZAKA and Torimero, yakiniku formats such as Yakiniku no Watami and Kamimura Farm, takeout and delivery formats such as Karaage no Tensai and Olive Chicken, and formats offering venues for special occasions, such as TGI Fridays. As a result of making strong progress in establishing a growth platform, the company achieved higher revenue and higher profit.」

「The company made strong progress in establishing a growth platform through the rollout of Yakiniku no Watami, which had reached 26 locations at the end of the third quarter of the current consolidated fiscal period, and Karaage no Tensai, a franchise-format, takeout- and delivery-focused business, which had reached 59 locations at the end of the third quarter of the current consolidated fiscal period, in addition to its izakaya format.」

「The company made strong progress in establishing a growth platform through the rollout of Yakiniku no Watami, which had reached 26 locations at the end of the second quarter of the current consolidated fiscal period, and Karaage no Tensai, a franchise-format, takeout- and delivery-focused business, which had reached 74 locations at the end of the second quarter of the current consolidated fiscal period, in addition to its izakaya format.」

「The company made strong progress in establishing a growth platform through measures including converting izakaya-format locations to Yakiniku no Watami, which had reached 26 locations at the end of the first quarter of the current consolidated fiscal period, and accelerating the opening of Karaage no Tensai, a franchise-format, takeout- and delivery-focused business, which had reached 96 locations at the end of the first quarter of the current consolidated fiscal period.」

「In the domestic restaurant business, the group is pursuing a growth strategy based on the expansion of takeout and delivery formats and conversions to yakiniku-format locations, in addition to the year-round contribution from the fixed-cost reductions initiated in the previous consolidated fiscal year.」

「The company made strong progress in establishing a growth platform through measures including converting izakaya-format locations to Yakiniku no Watami, which had reached 24 locations at the end of the first quarter of the current consolidated fiscal period, and accelerating the opening of Karaage no Tensai, a franchise-format, takeout- and delivery-focused business, which had reached 105 locations at the end of the first quarter of the current consolidated fiscal period.」

「The company made strong progress in establishing a growth platform for the following consolidated fiscal year and beyond through measures including converting izakaya-format locations to Yakiniku no Watami, which had reached 23 locations at the end of the current consolidated fiscal year, and accelerating the opening of Karaage no Tensai, a franchise-format, takeout- and delivery-focused business, which had reached 92 locations at the end of the current consolidated fiscal year.」

「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 addition to the recovery in same-store sales, the company expects consolidated results for the second half of the current consolidated fiscal year to improve from the first half, supported by measures including reducing losses from store closures, rolling out takeout and delivery formats, and converting izakaya-format locations to yakiniku-format locations.」

「The company is diversifying its revenue sources to expand the restaurant business, including by launching franchise operations for new formats featuring strong products and high productivity.」

「Although the effects of format conversions and other initiatives resulted in same-store sales of 99.5% and same-store customer traffic of 100.3% of the previous year, higher costs at existing locations resulted in higher revenue but lower profit.」

「The effects of format conversions and other initiatives resulted in same-store sales of 100.1% and same-store customer traffic of 101.0% of the previous year, enabling the company to achieve higher revenue and higher profit.」

「Although profitable locations were closed, profitability improved as a result of the effects of format conversions and merchandising improvements.」

「Although earnings declined due to the closure of profitable locations and higher personnel costs, profitability improved as a result of the effects of format conversions and merchandising improvements.」

「Measures to generate sales through format conversions and other initiatives, together with improvements in store operations, resulted in same-store sales of 102.1% and same-store customer traffic of 102.4% of the previous year.」

「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.」

「To address this situation, the group plans to carry out format conversions and rebrandings at approximately 80 locations during the current consolidated fiscal year, converting them to MIRAIZAKA and Sandaime Torimero, which made a significant contribution to improving same-store sales in the previous consolidated fiscal year. The aim is to bring same-store sales in the domestic restaurant business to 100.7% of the previous year. During the 9-month period of the current consolidated fiscal year, same-store sales reached 105.8% of the previous year, partly as a result of format conversions and rebrandings at 123 locations, and performance is recovering, centered on MIRAIZAKA and Sandaime Torimero.」

「To resolve this situation, our group plans to convert the formats and change the signage at approximately 80 stores during the current consolidated fiscal year, primarily to Miraizaka and Sandaime Torimero, which made a significant contribution to improving sales at existing stores in the previous consolidated fiscal year, thereby raising sales at existing stores in the domestic restaurant business to 100.7% year on year. We are also strengthening cost-reduction initiatives, including attracting new customer segments by rebuilding underperforming formats and fully utilizing our in-house production facility, Tedzukuri Chubo. During the first 6 months of the current consolidated fiscal year, sales at existing stores reached 107.2% year on year, driven in part by format conversions and signage changes at 103 stores, and performance showed signs of recovery, centered on Miraizaka and Sandaime Torimero.」

「To address this situation, the group plans to carry out format conversions and rebrandings at approximately 80 locations during the current consolidated fiscal year, converting them to MIRAIZAKA and Sandaime Torimero, which made a significant contribution to improving same-store sales in the previous consolidated fiscal year. The aim is to bring same-store sales in the domestic restaurant business to 100.7% of the previous year. During the first quarter of the current consolidated fiscal year, same-store sales reached 107.6% of the previous year, partly as a result of format conversions and rebrandings at 58 locations, and performance is recovering, centered on MIRAIZAKA and Sandaime Torimero.」

「The domestic restaurant business urgently needs to be rebuilt, having posted operating losses for 3 consecutive periods. Since June, we have been rolling out MIRAIZAKA as a conversion from Watami, and since July, Sandaime Torimero as a conversion from Wataminchi.」

「Since June, we have been rolling out MIRAIZAKA as a conversion from Watami, and since July, Sandaime Torimero as a conversion from Wataminchi. These formats have been well received by customers, supported by lower drink prices and the promotion of signature dishes using domestically produced young chicken. As of the end of the second quarter of the consolidated fiscal period, the number of MIRAIZAKA locations had increased to 22 and that of Sandaime Torimero locations to 38, helping to lift same-store sales. We plan to carry out format conversions at a total of 84 locations, including other formats, by the end of November.」

「In June, we began rolling out 「ミライザカ」 as a conversion from 「和民」. It has performed well as a new brand with stronger product appeal. From July, we plan to roll out 「三代目鳥メロ」 as a conversion from 「わたみん家」.」

「We determined that the core 「和民」 and 「わたみん家」 brands should not merely be preserved, but transformed into new brands rather than simply changing their signage, and have begun new experiments. In the following consolidated fiscal year, we plan to change the business formats and signage at approximately 80 locations in total.」