Store operations and lower demand due to COVID-19

「Following the containment of COVID-19, the number of customers visiting restaurants, particularly, has begun to recover. However, as concerns remain about a resurgence of the infection, the outlook remains uncertain.」

「The impact of COVID-19, including the possibility of another outbreak, is expected to persist into the next fiscal year, and there are concerns that it will take a long time for the world and Japan to fully recover from its effects.」

「The restaurant business has been particularly heavily affected by the spread of COVID-19. The company has undertaken structural reforms, including a review of store operations and logistics rationalization, and achieved some results. However, consumer reluctance to visit restaurants, particularly izakaya-style establishments, and concerns about a renewed spread of the infection mean that the outlook remains uncertain.」

「The restaurant business has been particularly heavily affected by the spread of COVID-19. The company has undertaken structural reforms, including a review of store operations and logistics rationalization, and achieved some results. However, consumer reluctance to visit restaurants, particularly izakaya-style establishments, and concerns about a renewed spread of the infection mean that the outlook remains uncertain.」

「The restaurant business has been particularly heavily affected by the spread of COVID-19. The company has undertaken structural reforms, including a review of store operations and logistics rationalization, and achieved some results. However, consumer reluctance to visit restaurants, particularly izakaya-style establishments, and the possibility of a renewed spread of the infection mean that the outlook remains uncertain.」

「In the restaurant business, after recording an operating loss of more than ¥300 million in the fiscal year ended March 2021, we began structural reforms, including reviewing store operations by clarifying the division of roles between store managers responsible for store operations and chefs responsible for menus and cooking, as well as streamlining logistics. However, we have been forced to operate for shorter hours while subject to restrictions on serving alcoholic beverages due to the state of emergency and priority preventive measures. Sales have already been significantly affected by consumer trends, particularly the avoidance of restaurants, mainly izakaya-style establishments.」

「In the restaurant business, after recording an operating loss of more than ¥300 million in the fiscal year ended March 2021, we began structural reforms, including reviewing store operations by clarifying the division of roles between store managers responsible for store operations and chefs responsible for menus and cooking, as well as streamlining logistics. However, we have been forced to operate for shorter hours while subject to restrictions on serving alcoholic beverages due to the state of emergency and priority preventive measures. Sales have already been significantly affected by consumer trends, particularly the avoidance of restaurants, mainly izakaya-style establishments.」

「As for the next period, the impact of the spread of COVID-19 is expected to persist, and it is believed that the world and Japan will require a prolonged period to recover from its effects. In these circumstances, a substantial impact on sales, particularly in the food-service business, is unavoidable. The outlook for the retail and domestic and overseas wholesale businesses also remains uncertain.」

「During the third quarter of the current cumulative consolidated period, Japan’s economy is expected to continue growing following second-quarter real GDP growth of positive 5.3% quarter on quarter, or positive 22.9% on an annualized basis. However, from November, restrictions on economic activity intensified following the arrival of the third wave of COVID-19, making the economic recovery gradual. In addition, the outlook for the economy has become increasingly uncertain, with a new state of emergency declared starting on 7 January in the Tokyo metropolitan area and 3 neighboring prefectures.」

「In the restaurant business, most stores, with some exceptions, were forced to close from April through May following the declaration of a state of emergency, but gradually reopened from June through July after implementing measures to prevent the spread of COVID-19. However, in August, Tokyo requested that businesses reduce their operating hours due to a sharp increase in infections, which significantly affected sales.」

「In particular, measures to address the spread of COVID-19, including reduced operating hours at retail stores and restaurant closures, resulted in same-store sales in April 2020 falling sharply to 79.7% of the year-earlier level.」

「If an infectious disease such as COVID-19 becomes widespread, measures including store closures and reduced operating hours may be implemented depending on the spread and prevalence of the disease or in response to requests from the government or other authorities, which could lead to lower sales and affect the performance of our group. Furthermore, even after the outbreak has subsided to some extent, changes in consumer purchasing trends could lead to lower sales.」