Store closures, lower demand and procurement difficulties due to COVID-19
First written in FY2020. 6 of 15 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2026.
Watami moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 6 of 16 companies on the "Worse" side.
21 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The business environment in the food service industry is progressing toward normalization, and demand has recovered to previous levels.」
It explains that demand for food service has recovered to previous levels, regarding the impact of store closures and declining demand caused by COVID-19. - 2026-05-13MitigatedResults
「当連結会計年度におけるわが国の経済は、底堅い企業業績を背景に前年度から続く賃上げの動きの広がり等により、雇用・所得環境の改善が進み、個人消費は堅調に推移いたしました。」
感染症による店舗休業・需要減少について新たな悪化は記載されず、個人消費の堅調な推移を示している。 - FY2025-H1MitigatedAnnual report
「With the widespread availability of vaccines and treatments, and with COVID-19 being handled from April 2024 in the same manner as seasonal influenza under the Infectious Diseases Control Law, economic activity in the food service industry has recovered to normal levels.」
The change in the legal classification of the infectious disease brought economic activity in the food service industry back to normal, further mitigating the impact of the risks of store closures and declining demand. - FY2024-Q2MitigatedAnnual report
「As the legal classification of COVID-19 was changed from the equivalent of Category II to Category V infectious disease, restrictions on activities were lifted, and domestic consumption is gradually recovering toward pre-COVID levels.」
The change in the legal classification of the infectious disease lifted restrictions on activities, and domestic consumption is recovering toward pre-COVID levels. The domestic food service business reported higher revenue and higher profit, further mitigating the impact of the risk of pandemic-related demand declines. - FY2024-Q1MitigatedAnnual report
「As the legal classification of COVID-19 was changed from the equivalent of Category II to Category V infectious disease, restrictions on activities were lifted, and domestic consumption is gradually recovering toward pre-COVID levels.」
The change in the legal classification of the infectious disease lifted restrictions on activities, and domestic consumption is recovering toward pre-COVID levels. Although additional information continues to indicate uncertainty over the pandemic's effects, improvement is evident in the domestic business environment. - FY2023-Q3WorsenedAnnual report
「Regarding the impact of COVID-19, as the number of infected people is trending up due to the emergence of a eighth wave, we believe it is difficult to accurately predict when the pandemic will end and other related matters.」
The number of infected people began trending up due to the eighth wave, and difficulty in predicting when the pandemic will end continues. While the business plan incorporates a gradual recovery from January 2023 onward, it has also been stated that additional impairment losses may arise if assumptions are revised. - FY2023-Q2WorsenedAnnual report
「Regarding the impact of COVID-19, although the number of infected people is trending down, the emergence of new variants and the possibility of a eighth wave remain concerns, and we believe it is difficult to accurately predict when the pandemic will end and other related matters.」
While the number of infected people is trending down, new variants and the possibility of a eighth wave have been cited, and uncertainty over when the pandemic will end continues. It has also been stated that additional impairment losses may arise if assumptions need to be revised. - FY2023-Q1Domestic recovery and overseas lockdowns coexistAnnual report
「Against this backdrop, economic activity in the food service industry has been gradually recovering, with measures such as the easing of restrictions on wearing masks outdoors and on the number of people permitted at group meals. Overseas, the economy remained in an uncertain state due to the slowdown accompanying lockdowns in Hong Kong and China under their zero-COVID measures.」
While food service activity in Japan showed signs of recovery as restrictions on mask-wearing and the number of people at group meals were eased, lockdowns and economic slowdowns continued in Hong Kong and China under their zero-COVID policies, with the improvement and persistence of the pandemic's effects coexisting across regions. - FY2022-Q3WorsenedAnnual report
「Regarding the impact of COVID-19, the Company believes that it is difficult to accurately predict when the pandemic will subside while the number of infections from the Omicron variant continues to rise.」
Uncertainty over when the pandemic will subside continues due to the spread of a new variant. The business plan incorporates an assumption of a gradual recovery from the next consolidated fiscal year onward. - FY2022-Q1RestatedAnnual report
「As efforts to bring COVID-19 under control accelerated, a state of emergency was declared again to contain further spread. This forced the suspension of alcohol sales, shortened operating hours and related store closures, and conditions remained difficult.」
The impacts of the state of emergency, the suspension of alcohol sales, shortened operating hours and store closures continue. The loss in the domestic food-service business, however, has narrowed from the year-earlier period. - FY2021WorsenedAnnual report
「In the domestic food-service business, the Company opened 99 new stores and closed 159 stores, bringing the total number of stores to 431 at the end of the consolidated fiscal year. Due to the impact of COVID-19, which began in the previous fiscal year, same-store revenue was 37.9% of the year-earlier period and same-store customer traffic was 39.0%.」
The impact of the pandemic continued throughout the fiscal year, with same-store revenue in the domestic food-service business at 37.9% of the year-earlier period, customer traffic at 39.0%, and the segment loss at ¥9,615 million. - FY2021-Q3WorsenedAnnual report
「Due to the impact of COVID-19, which began in the previous fiscal year, same-store revenue was 36.3% of the year-earlier period and same-store customer traffic was 37.3%. As a result, revenue in the domestic food-service business was ¥13,691 million, or 37.8% of the year-earlier period, and the segment loss was ¥7,125 million, compared with profit of ¥428 million in the year-earlier period. A second declaration of a state of emergency covering 11 prefectures and metropolitan areas, including requests for restaurants to shorten their operating hours, was issued in January 2021. Same-store revenue in the domestic food-service business in January 2021 was 38.0% of the year-earlier period and same-store customer traffic was 61.0%.」
Due to the pandemic, cumulative same-store revenue in the domestic food-service business was 36.3% of the year-earlier period, customer traffic was 37.3%, and the segment loss was ¥7,125 million. Although the business recovered on a quarterly basis, a second state of emergency was declared, and January revenue fell to 38.0% of the year-earlier period. - FY2021-Q2WorsenedAnnual report
「Due to the impact of COVID-19, which began in the previous fiscal year, same-store revenue was 28.5% of the year-earlier period and same-store customer traffic was 29.3%.」
The impact of COVID-19 continued, leaving same-store revenue and customer traffic in the domestic food-service business substantially below the year-earlier period. Given the uncertainty over when the pandemic would subside and revenue recover, multiple assumptions were used in estimates including impairment accounting. - FY2021-Q1MaterialisedAnnual report
「In the domestic food-service business, the Company opened 17 new stores and closed 69 stores, bringing the total number of stores to 439 at the end of the current quarter. Due to the impact of COVID-19, which began in the previous fiscal year, same-store revenue was 16.6% of the year-earlier period and same-store customer traffic was 19.3%.」
The impact of COVID-19 was reflected in the domestic food-service business in the first quarter, with same-store revenue falling to 16.6% of the year-earlier period and customer traffic to 19.3%. - FY2020First statedAnnual report
「COVID-19 has had a major impact on economic activity and consumer spending behaviour in Japan. Since the declaration of a state of emergency, the Group suspended operations at all directly operated stores in its domestic food-service business, excluding takeout-format stores, and consequently same-store revenue in April and May was substantially below the year-earlier period. As COVID-19 spread in Japan and overseas and the timing of its containment remained unforeseeable, the impact on the Group’s results was uncertain, including the trends in domestic and international demand, progress on construction projects and restrictions on the movement of people.」
The closure of directly operated stores and the decline in same-store revenue actually occurred, and the impacts on future demand, the movement of people and raw-material procurement were newly identified as risks.