Improving Productivity and Rebuilding Supply and Logistics Systems

「Regarding our production system, we will advance preparations for construction of a new plant in step with store expansion, establishing the foundation for providing affordable and delicious products and enhancing corporate value.」

「We also acquired land for construction of a new plant, which will form the foundation of our in-house manufacturing and direct-sales model. Operations at the new plant are scheduled to begin in December 2028.」

「By constructing a new Koriyama plant (tentative name; scheduled to begin operations in December 2028), increasing staffing at the current Koriyama plant and updating equipment at the Odawara plant, we plan to gradually secure the product supply capacity needed to support plans for higher sales through new store openings, store renovations and longer operating hours, with a view to expanding to 500 stores.」

「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.」

「As a result, for the interim consolidated accounting period, net sales were ¥13,713 million, up 5.0% year on year, operating profit was ¥427 million, compared with an operating loss of ¥409 million in the same period of the previous year, ordinary profit was ¥403 million, compared with an ordinary loss of ¥421 million, and interim net profit attributable to owners of the parent was ¥512 million, compared with an interim net loss attributable to owners of the parent of ¥253 million in the same period of the previous year.」

「Against this backdrop, the consolidated third quarter operating period posted an operating profit for the second consecutive quarter, following the second quarter, through the regular introduction of new menu items and stronger efforts to attract customers through digital marketing, improved customer satisfaction through better QSC at all stores, reduced losses through the closure of unprofitable stores, and the promotion of low-cost operations through expense controls, among other measures.」

「The company plans to eliminate its operating loss by reducing losses through the closure of unprofitable stores and promoting low-cost operations through expense controls.」

「The company plans to eliminate its operating loss by normalizing business hours through resolving labor shortages, improving store operating efficiency by narrowing the range of standard menu items, increasing average spend per customer through the product mix, revising the prices of certain products to reflect higher store operating costs, substantially reducing promotional expenses, rigorously managing fixed costs and closing unprofitable stores, among other measures.」

「We will achieve substantial cost reductions by reviewing purchasing activities and manufacturing processes to reduce food costs, reducing logistics costs by moving to joint distribution, discontinuing television commercials, and reducing promotional expenses by reassessing cost-effectiveness, among other measures.」

「We have also actively pursued cost reductions, including rigorous fixed-cost management, and worked to improve profitability.」

「We have also actively pursued cost reductions, including rigorous fixed-cost management, and worked to improve profitability. As a result, the break-even point for the Company as a whole declined, and all profit measures improved.」

「We are also continuing to improve profitability through rigorous cost reductions and optimization of store openings and investment.」

「We have also actively pursued cost reductions, including rigorous fixed-cost management, and worked to improve profitability.」

「Specifically, we are improving store operating efficiency through cost reductions using professional expertise, labor-cost reductions through stricter standard labor management, and the introduction of tablets, robots and SI-based systems.」

「The company implemented initiatives including takeaway of store menu items, including the new “Kouben” Kourakuen bento, taxi delivery and the launch of its own delivery service, drive-through service, a tablet self-ordering system, the introduction of serving robots, and the broader introduction of breakfast menus.」

「We promptly established an emergency response headquarters, set up an expanded production system at the Odawara Factory in Kanagawa Prefecture, and quickly resumed operations at stores under the Koriyama area with a limited menu and limited quantities. In addition, we achieved full operation at the Koriyama Factory in early November and resumed normal operations at all stores within one month of the disaster.」

「We newly established a Cost Reduction Promotion Department, will improve the stores, factories and head office from an operational perspective, and will work to streamline and reorganize operations.」

「The Kyoto Factory was transferred.」

「To improve the efficiency of its management resources and enhance profitability, the Group reviewed its in-house production system and decided to transfer ownership of its Kyoto Factory. Scheduled property handover date March 2018 (scheduled) Transfer price 2,360 Book value 1,783 Gain on transfer 516」

「We will review all operations and processes across our stores, factories, supply operations and head office functions, pursue productivity improvements and lower the break-even point, and rebuild our supply and logistics operations in line with the expansion of our store network.」