Domestic restaurant sales at existing stores above 100% year on year and a return to profitability

「国内外食事業における売上高は9,615百万円（前年同期比106.6％）、セグメント利益は583百万円（前年同期比113.4％）の増収増益となりました。」

「In the domestic food-service business, we opened 42 new locations and closed 17, bringing the total number of locations to 517 at the end of the consolidated fiscal year. Revenue from the domestic food-service business increased 9.5% year on year to ¥37,668 million, while segment profit increased 40.5% to ¥2,263 million.」

「In the domestic food-service business, we opened 12 locations and closed 8, bringing the total number of locations to 496 at the end of the interim consolidated accounting period. Performance remained strong, with same-store revenue at izakaya, yakiniku and TGI locations exceeding the previous year's level for 6 consecutive months. Revenue from the domestic food-service business was ¥18,010 million, up 110.0% year on year, and segment profit was ¥884 million, up 126.9% year on year.」

「In the domestic food-service business, we closed 9 locations, bringing the total number of locations to 319 at the end of the interim consolidated accounting period. As economic activity in the food-service industry had recovered to normal levels, including the treatment of COVID-19 being aligned with that for seasonal influenza from April 2024, revenue from the domestic food-service business was ¥16,371 million, up 109.2% year on year, and segment profit was ¥696 million, up 156.7% year on year.」

「In the domestic food-service business, we opened 5 new locations and closed 13, bringing the total number of locations to 339 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, and as the business gradually recovered toward pre-pandemic levels, revenue from the domestic food-service business was ¥23,557 million, up 129.5% year on year, and segment profit was ¥960 million, compared with a loss of ¥1,613 million in the same period of the previous year.」

「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, and as the business gradually recovered toward pre-pandemic levels, revenue from the domestic food-service business was ¥14,992 million, up 131.3% year on year, and segment profit was ¥444 million, compared with a loss of ¥1,281 million in the same period of the previous year.」

「Revenue from the domestic food-service business was ¥7,371 million, up 126.5% year on year, and segment profit was ¥312 million, compared with a loss of ¥582 million in the same period of the previous year.」

「In the domestic food-service business, we opened 17 new locations and closed 55, bringing the total number of locations to 367 at the end of the quarter. As economic activity in the food-service industry gradually recovered, with measures such as the easing of outdoor mask-wearing and limits on the number of people at gatherings, revenue from the domestic food-service business was ¥18,184 million, up 161.4% year on year, and the segment loss was ¥1,613 million, compared with a loss of ¥4,714 million in the same period of the previous year.」

「Revenue in the domestic restaurant business was ¥11,416 million, or 210.8% of the same period of the previous year, and the segment loss was ¥1,281 million, compared with a loss of ¥3,850 million in the same period of the previous year.」

「In the domestic restaurant business, we opened 10 new stores and closed 8 stores, bringing the number of stores at the end of the current quarter's consolidated accounting period to 407. As economic activity in the restaurant industry gradually recovered, including the easing of outdoor mask-wearing requirements and restrictions on the number of people at group meals, revenue in the domestic restaurant business was ¥5,829 million, or 203.9% of the same period of the previous year, and the segment loss was ¥582 million, compared with a loss of ¥2,167 million in the same period of the previous year.」

「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 restaurant business, we opened 27 new stores and closed 12 stores, bringing the number of stores at the end of the second quarter of the current consolidated fiscal year to 446, including stores converted from izakaya formats. Due to restrictions on operating hours resulting from the state of emergency and priority preventive measures implemented to control COVID-19, revenue in the domestic restaurant business was ¥5,415 million, or 72.2% of the same period of the previous year, and the segment loss was ¥3,850 million, compared with a loss of ¥5,343 million in the same period of the previous year. As a result, the segment loss in this business improved from ¥2,167 million in the first quarter of the current consolidated fiscal year to ¥1,682 million in the second quarter.」

「In the domestic restaurant business, we opened 18 new stores and closed 4 stores, bringing the number of stores at the end of the first quarter of the current consolidated fiscal year to 445. Due to restrictions on operating hours resulting from the state of emergency and priority preventive measures implemented to control COVID-19, revenue in the domestic restaurant business was ¥2,859 million, or 130.2% of the same period of the previous year, and the segment loss was ¥2,167 million, compared with a loss of ¥3,311 million in the same period of the previous year.」

「In the domestic restaurant business, we opened 99 new stores and closed 159 stores, bringing the number of stores at the end of the current consolidated fiscal year to 431. Due to the impact of the COVID-19 pandemic, which began in the previous fiscal year, sales at existing stores were 37.9% year on year and customer traffic at existing stores was 39.0% year on year. As a result, revenue in the domestic restaurant business was ¥17,094 million, or 36.4% of the previous fiscal year's level, and the segment loss was ¥9,615 million, compared with segment profit of ¥247 million in the previous fiscal year.」

「In the domestic restaurant business, which was most severely affected by the spread of COVID-19, sales at existing stores fell to 15.1% year on year during the first quarter accounting period, which included the period from April to May 2020 when the state of emergency was in effect nationwide. After the state of emergency was lifted, sales began to recover independently, and the government's Go To initiatives also contributed, with sales recovering to 44.5% in the second quarter accounting period and 53.1% in the third quarter accounting period. The segment loss in this business also improved to ¥1,781 million in the third quarter accounting period, compared with ¥3,311 million in the first quarter accounting period, excluding ¥729 million in losses from temporary store closures, and ¥2,032 million in the second quarter accounting period.」

「In the domestic restaurant business, we opened 54 new stores and closed 91 stores, bringing the number of stores at the end of the current quarter's consolidated accounting period to 454. Due to the impact of the COVID-19 pandemic, which began in the previous fiscal year, sales at existing stores were 28.5% year on year and customer traffic at existing stores was 29.3% year on year. As a result, revenue in the domestic restaurant business was ¥7,497 million, or 32.1% of the same period of the previous year, and the segment loss was ¥5,343 million, compared with a loss of ¥32 million in the same period of the previous year.」

「In the domestic restaurant business, we opened 17 new stores and closed 69 stores, bringing the number of stores at the end of the current quarter's consolidated accounting period to 439. Due to the impact of the COVID-19 pandemic, which began in the previous fiscal year, sales at existing stores were 16.6% year on year and customer traffic at existing stores was 19.3% year on year. As a result, revenue in the domestic restaurant business was ¥2,196 million, or 18.5% of the same period of the previous year, and the segment loss was ¥3,311 million, compared with segment profit of ¥126 million in the same period of the previous year.」

「In the domestic restaurant business, we opened 37 new stores and closed 26 stores, bringing the number of stores at the end of the current consolidated fiscal year to 491, compared with 480 in the previous fiscal year. Sales at existing stores were 96.2% year on year and customer traffic at existing stores was 96.8% year on year. Although the effects of format conversions and other measures proved effective, sales at existing stores fell to 59.6% year on year in March alone due to the impact of COVID-19.」

「In the domestic restaurant business, we opened 30 new stores and closed 9 stores, bringing the number of stores at the end of the current quarter's consolidated accounting period to 501. Although the effects of format conversions and other measures resulted in customer traffic at existing stores of 100.3% year on year, sales at existing stores were 99.5% year on year due to higher costs at existing stores, resulting in higher revenue and lower profit. As a result, revenue in the domestic restaurant business was ¥36,260 million, or 101.8% of the same period of the previous year, and segment profit was ¥428 million, or 56.1% of the same period of the previous year.」

「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 restaurant business, we opened 8 new stores and closed 3 stores, bringing the number of stores at the end of the current quarter's consolidated accounting period to 485. The effects of format conversions and other measures resulted in sales at existing stores of 100.5% year on year and customer traffic at existing stores of 100.8% year on year. As a result, revenue in the domestic restaurant business was ¥11,854 million, or 104.0% of the same period of the previous year, and segment profit was ¥126 million, compared with a loss of ¥35 million in the same period of the previous year, marking a return to profitability for the first time in 6 quarters on a quarterly consolidated accounting-period basis.」

「In the domestic restaurant business, we opened 21 new stores and closed 9 stores, bringing the number of stores at the end of the current quarter's consolidated accounting period to 479. Although profitable stores were closed, profitability improved through the effects of format conversions and merchandise development improvements. As a result, sales at existing stores were 101.5% year on year and customer traffic at existing stores was 101.6% year on year, while revenue was ¥35,616 million, or 98.0% of the same period of the previous year, and segment profit was ¥763 million, or 274.0% of the same period of the previous year.」

「In the domestic restaurant business, we opened 10 new stores and closed 9 stores, bringing the number of stores at the end of the current quarter's consolidated accounting period to 468. Sales at existing stores were 100.6% year on year and customer traffic at existing stores was 100.7% year on year. Although profit declined due to the closure of profitable stores and higher labor costs, profitability improved through the effects of format conversions and improvements in merchandise development. As a result, revenue in the domestic restaurant business was ¥22,682 million, or 96.5% of the same period of the previous year, and the segment loss was ¥67 million, compared with a loss of ¥84 million in the same period of the previous year.」

「In the domestic restaurant business, we closed 8 stores, bringing the number of stores at the end of the current quarter's consolidated accounting period to 466. Measures to generate sales through format conversions and improvements in store operations resulted in sales at existing stores of 102.1% year on year and customer traffic at existing stores of 102.4% year on year. However, revenue declined and profit increased due in part to the closure of unprofitable stores.」

「In the domestic restaurant business, we opened 11 new stores and closed 23 stores, bringing the number of stores at the end of the current consolidated fiscal year to 467. Measures to generate sales through format conversions and improvements in store operations resulted in sales at existing stores of 105.3% year on year, exceeding the previous year's level for the second consecutive year, and revenue and profit increased. As a result, revenue in the domestic restaurant business was ¥48,325 million, or 102.2% of the previous fiscal year's level, and segment profit was ¥555 million, compared with a loss of ¥229 million in the previous fiscal year, marking a return to profitability for the first time in 5 periods.」

「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 9 months of the current consolidated fiscal year, sales at existing stores reached 105.8% year on year, driven in part by format conversions and signage changes at 123 stores, and performance showed signs of recovery, 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 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 also strengthened sales promotion during the peak trading season, including promoting the use of early-bird discounts ahead of the year-end party season, and implemented measures to improve store operations and reduce costs. These initiatives proved effective: during the first 9 months of the current consolidated fiscal year, sales at existing stores were 101.9% year on year and customer traffic at existing stores was 100.0% year on year, while sales at existing stores during the year-end party season in December reached 104.1% year on year. Performance in the domestic restaurant business therefore recovered significantly, and we achieved a return to consolidated ordinary profitability for the first time in 3 periods during the first 9 months of the current consolidated fiscal year. We believe that continuing these initiatives to improve performance, centered on the domestic restaurant business, will enable us to achieve consolidated operating and ordinary profitability for the full fiscal year as well.」

「The domestic restaurant business has reported operating losses for 3 consecutive periods and urgently needs to be rebuilt. However, during the first 6 months of the current consolidated fiscal year, performance showed signs of recovery, with sales at existing stores at 101.8% year on year and customer traffic at existing stores at 100.5% year on year.」

「During the first quarter of the current consolidated fiscal year, performance showed signs of recovery, with sales at existing stores reaching 100.3% year on year. In addition, from June we began rolling out Miraizaka as a format conversion from Watami, and the new brand, with stronger product appeal, has performed well. In fiscal 2016, we planned to convert the formats of approximately 80 stores in total, with the aim of driving growth in sales at existing stores and raising sales at existing stores above 100% year on year.」

「In the following consolidated fiscal year, we plan to convert the formats and change the signage at approximately 80 stores in total, with the aim of driving growth in sales at existing stores and raising sales at existing stores above 100% year on year.」