Supply Disruption Risk Associated with Production Concentrated at 2 Plants
First written in FY2021. 2 of 5 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2018: 32 of 131 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「In production, the Company plans to support sales growth through new restaurants, restaurant renovations and longer operating hours by building a new Koriyama plant, scheduled to begin operations in December 2028, adding personnel at the existing Koriyama plant, and updating equipment at the Odawara plant. It also plans to secure production and supply capacity in stages with a view to expanding to 500 restaurants.」
To address the supply-capacity risk associated with concentrated production at two plants, the Company plans to build a new plant, add personnel and update equipment at existing plants, and secure supply capacity with a view to expanding to 500 restaurants. - FY2025MitigatedAnnual report
「We will expand the production capacity of the Koriyama and Odawara factories to secure sufficient production capacity for future operating initiatives, including longer business hours and new store openings.」
To address the supply-capacity risk associated with concentrated production at two plants, the Company plans to expand the production capacity of the Koriyama and Odawara plants. - FY2023RestatedAnnual report
「The Company is working to establish a system for procuring other ingredients of high quality from around the world at lower cost. However, if raw-material prices rise due to a global food shortage caused by abnormal weather or shipment restrictions on vegetables and other products following the detection of radioactive materials, this could affect the Group’s business performance.」
The Company continues to disclose higher raw-material prices caused by abnormal weather, food shortages and shipment restrictions as risks to its supply and procurement system. - FY2022Addition of a supply stoppage risk factorAnnual report
「The Company is working to establish a system for procuring other ingredients of high quality from around the world at lower cost. However, if raw-material prices rise due to a global food shortage caused by abnormal weather or shipment restrictions on vegetables and other products following the detection of radioactive materials, this could affect the Group’s business performance.」
In addition to the supply risks associated with concentrated production at two plants, the Company identifies higher raw-material prices caused by abnormal weather, food shortages and shipment restrictions as risks to its supply and procurement system. - FY2021First statedAnnual report
「Because the concentrated production system at two plants is closely related to future restaurant-opening plans, if the development of directly operated restaurants does not proceed as planned, or if it takes longer to recover invested capital because the initial earnings plan cannot be achieved, lower utilization of the plants and an increase in interest-bearing debt could become burdens and affect the Group’s business performance.」
In addition to the existing two-plant production system, the Company explicitly identifies lower plant utilization, unforeseen events at either plant and temporary production stoppages due to infection clusters as business-performance risks.