Risks to Dining-Out Demand, Store Operations and Cash Flow Management from the Spread of COVID-19
First written in FY2020. 4 of 17 entries say "Worsened", first in FY2021. Latest entry: FY2025.
The whole theme swung hardest in 2025: 6 of 13 companies on the "Worse" side.
16 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Dining-out demand has remained firm, with a gradual recovery trend continuing.」
The decline in dining-out demand caused by activity restrictions related to the pandemic has been easing as demand and foot traffic recover. - FY2024-Q3MitigatedAnnual report
「In the food-service industry, customer numbers have been recovering as foot traffic returns with the normalization of economic activity, including the revival of various events involving outings.」
The impact on dining-out demand is easing as economic activity normalizes and foot traffic recovers following COVID-19’s transition to Category 5. However, the effects of labor shortages and rising costs remain. - FY2024-Q2MitigatedAnnual report
「In the food-service industry, consumer behavior is gradually returning to pre-pandemic conditions, as the recovery in foot traffic has accompanied the return of various events for the first time since before the pandemic following the transition of COVID-19 to Category 5.」
The impact of activity restrictions on dining-out demand has eased with COVID-19’s transition to Category 5 and the recovery in foot traffic. However, the impact of labor shortages and rising costs on business performance remains. - FY2024-Q1Performance impact continues after the lifting of activity restrictionsAnnual report
「With the removal of restrictions on activities due to COVID-19, dining-out occasions among families and seniors, the Group’s main target customers, have been increasing. However, labor shortages have continued to force some restaurants to reduce their operating hours or close temporarily, resulting in a slower-than-expected recovery in sales.」
Dining-out occasions have been increasing following the removal of activity restrictions, but reduced operating hours and temporary closures due to labor shortages have continued, delaying the recovery in sales more than expected. - FY2023RestatedAnnual report
「However, the sharp increase in infections from COVID-19 variants from July onward, followed by the start of the eighth wave of infections in late October, again strengthened the tendency to refrain from dining out, causing the impact on performance to last longer than expected.」
The company continues to state that the impact of COVID-19 on performance has been prolonged by the eighth wave of infections, people refraining from dining out, and shortened business hours and closures caused by labor shortages. - FY2023-Q3WorsenedAnnual report
「However, recession risks increased as the sharp rise in infections with COVID-19 variants from July, higher raw material and energy prices resulting from the prolonged Russia-Ukraine situation, rising global inflation and rapid yen depreciation caused by the widening interest-rate differential between Japan and the United States continued. The outlook therefore remained uncertain.」
The impact of the pandemic on foodservice demand and store operations has lasted longer than expected because the sharp increase in infections from variants continued, and the eighth wave of infections led to people refraining from dining out, store closures and shortened business hours. - FY2023-Q2WorsenedAnnual report
「After the lifting of the priority preventive measures to prevent the spread of disease in March 2022, our group's performance was recovering. However, the sharp increase in infections from COVID-19 variants from July onward again strengthened the tendency to refrain from dining out, causing the impact on performance to last longer than expected.」
Although performance showed a recovery trend after the measures were lifted, the sharp increase in infections from variants from July onward renewed the tendency to refrain from dining out, causing the effects of COVID-19 to last longer than expected. - FY2023-Q1Recovery slows and effects continueAnnual report
「The business environment remains challenging because of the effects of COVID-19. During the first quarter of the current consolidated fiscal year, same-store sales and customer numbers were 102.2% and 103.0% of the prior-year levels, respectively. There were also signs of improvement in the operating loss. However, as the number of infections in Japan began to rise again and the timing of the end of the pandemic could not be clearly forecast, we maintained the assumption that although conditions would improve, the effects of COVID-19 would continue.」
Although signs of improvement were seen in same-store sales, customer numbers and the operating loss, the company maintained its assumption that the effects of COVID-19 would continue because the number of infections in Japan had begun to rise again. - FY2022WorsenedAnnual report
「The decline in consolidated sales was primarily attributable to the impact of the declaration of a state of emergency and other measures in response to the spread of COVID-19.」
Annual sales fell 5.8% year on year, while the operating loss widened from ¥1,729 million to ¥2,045 million, indicating that the impact of COVID-19 on foodservice demand and store operations continued in the full-year results. - FY2022-Q3Effects continue and recovery slowsAnnual report
「During the third quarter of the current consolidated fiscal year, same-store sales and customer numbers were 96.5% and 99.3% of the prior-year levels, respectively. Because the timing of the end of the pandemic could not be clearly forecast, we assumed that although conditions would improve, the effects of COVID-19 would continue, and made judgments regarding the recoverability of deferred tax assets and whether impairment losses on fixed assets should be recognized. In addition, there was no material change during the third quarter in the assumptions regarding the impact of COVID-19 on our group.」
Same-store sales were 96.5% of the prior-year level and customer numbers were 99.3%, indicating that the effects of the pandemic continued. There was no material change in the accounting assumption that COVID-19 would continue throughout the current consolidated fiscal year. - FY2022-Q2Recovery slowing while effects continueAnnual report
「As the infection spread, states of emergency were declared from 25 April to 20 June 2021 and from 12 July to 30 September. During the second quarter of the current consolidated fiscal year, same-store sales and customer numbers were 99.9% and 98.9% of the prior-year levels, respectively. Because the timing of the end of the pandemic could not be clearly forecast, we assumed that although conditions would improve, the effects of COVID-19 would continue throughout the current consolidated fiscal year, and made judgments regarding the recoverability of deferred tax assets and whether impairment losses on fixed assets should be recognized.」
Although same-store sales and customer numbers were 99.9% and 98.9% of the prior-year levels, respectively, the company maintained its assumption that the effects of COVID-19 would continue throughout the current consolidated fiscal year because of the impact of the state of emergency and the uncertain timing of the end of the pandemic. - FY2022-Q1Improvement in same-store sales and customer numbers, while effects continueAnnual report
「Because the timing of the end of the pandemic could not be clearly forecast, we assumed that although conditions would improve, the effects of COVID-19 would continue throughout the current consolidated fiscal year, and made judgments regarding the recoverability of deferred tax assets and whether impairment losses on fixed assets should be recognized.」
Although same-store sales in the first quarter were 115.3% of the prior-year level and customer numbers improved to 112.8%, the company assumed that the effects of the pandemic would continue throughout the current consolidated fiscal year. - FY2021WorsenedAnnual report
「In the foodservice industry, sales declined following the first state of emergency declared in April 2020, due to shortened business hours, closures and fewer visitors resulting from requests to refrain from going out. Although signs of a recovery were seen after the state of emergency was lifted, the business environment has remained challenging because requests to shorten business hours and refrain from going out were issued in response to the renewed spread of infections. More recently, in addition to the second state of emergency declared in January 2021, a third was declared in April 2021, causing a significant impact not only during the current consolidated fiscal year but also in the first quarter of the fiscal year ending March 2022.」
Although a temporary recovery was reported, the impact on foodservice demand and store operations continued into the first quarter of the fiscal year ending March 2022 because of the renewed spread of infections and the second and third states of emergency. - FY2021-Q3Recovery progressing while the effects of the pandemic continueAnnual report
「Although signs of a recovery were seen following the lifting of the state of emergency, the business environment has remained challenging because requests to shorten business hours and refrain from going out were issued in response to the renewed increase in infections.」
While a recovery following the lifting of the state of emergency was reported, the effects of the pandemic on foodservice demand and store operations continued because of requests to shorten business hours and refrain from going out amid the renewed increase in infections. - FY2021-Q2Recovery progressing while prolonged effects remain assumedAnnual report
「Although same-store sales improved from 50.0% of the prior-year level in April 2020 to 74.5% in July, 72.6% in August and 77.9% in September, the timing of the end of the pandemic could not be clearly forecast. Accordingly, we changed the assumption stated in the securities report for the previous consolidated fiscal year that the effects of the pandemic would recover by around December 2020, and assumed that although conditions would improve, they would continue for a certain period beyond the end of the current consolidated fiscal year.」
Same-store sales showed signs of recovery from 50.0% of the prior-year level in April to 74.5% in July, 72.6% in August and 77.9% in September, while the assumption was changed to one in which the effects of the pandemic would continue beyond the end of the current consolidated fiscal year. - FY2021-Q1Signs of a Partial RecoveryAnnual report
「Although same-store sales in April 2020 were 50.0% of the prior-year level, they recovered to 62.2% in May and 71.5% in June, indicating signs of recovery.」
Monthly recovery was indicated by same-store sales improving from 50.0% of the prior-year level in April to 62.2% in May and 71.5% in June. However, quarterly sales were down 44.1% year on year, and the infection risk and its impact on performance continued. quantified is true and materialized is true. - FY2020MaterialisedAnnual report
「Our group was affected by the spread of COVID-19 from February 2020 onward. Same-store sales fell 22.0% year on year in March, but after a state of emergency was declared across Japan in April, the decline widened to 50.0% year on year as stores closed and business hours were shortened in April.」
The spread of the infection, calls to refrain from dining out, store closures and shortened business hours actually occurred, with same-store sales down 22.0% year on year in March and 50.0% in April. The company also disclosed the risk that production could be suspended if a cluster infection occurred at a factory.