Cost control through food procurement, in-house production and more efficient ordering

「In addition, our 15 function-specific central kitchens and food factories nationwide provide stores with integrated merchandising capabilities covering everything from raw-material procurement through processing and delivery.」

「By leveraging these relationships across the group, we can achieve stable procurement of beef for the group and strengthen distribution earnings by building a supply-chain network centered on Asia.」

「For N Baton Company Co., Ltd., which operates the dessert business newly added to our group and changed its name from Nippon Meika Sogo Honpo Co., Ltd. on 1 October 2024, and the 5 consolidated subsidiaries operating the food-service business, we have not only newly organized procurement-to-logistics operations that had previously been fragmented, leveraging group synergies, but are also improving efficiency by producing products at group factories.」

「Corowide MD Co., Ltd. is leading continued efforts to standardize raw materials and specifications. At our central kitchens, we are expanding beyond food procurement and basic processing to increase in-house production of products, including processed meat products such as hamburgers, sauces for Steak Miya, ramen soup, processed soy-meat products, and meal kits, which are particularly strong products in the food-service business. In logistics, we are also continuing to consolidate distribution centers.」

「In addition, to address the logistics “2024 problem,” we consolidated the number of delivery hubs from 16 nationwide to 12 and optimized food-delivery frequency, reducing deliveries at most distribution centers from 6 days per week to 5 days per week.」

「As part of developing group infrastructure, we are also addressing the logistics “2024 problem,” and implemented the planned efficiency improvements through delivery-hub consolidation and delivery-frequency optimization.」

「We are also addressing the “2024 problem,” which is expected to make logistics conditions more challenging. To improve efficiency, we consolidated delivery hubs from 16 nationwide to 13 and have gradually reduced delivery frequency. In addition, to further improve food-safety management, all factories of Corowide MD Co., Ltd. obtained certification under JFS-B, a food-safety management standard, thereby meeting HACCP, an international food-hygiene management methodology.」

「To address the “2024 problem,” which is expected to make logistics conditions more challenging, we have worked to optimize food-delivery frequency and consolidate delivery hubs. During the cumulative first-quarter consolidated period, we consolidated the number of delivery hubs from 16 nationwide to 13.」

「We established the Corowide MD Research Institute in October last year and are advancing the standardization of raw materials and specifications across group companies, menu development focused on improving yields from ingredients, and reducing raw-material waste. We are also working to consolidate food delivery hubs and optimize delivery frequency, and continue initiatives to further improve logistics efficiency.」

「The Corowide MD Research Institute was established in October 2022. We are integrating the product development bases of group companies and advancing menu development focused on improving yields on ingredients and reducing food waste.」

「In research and development, the Corowide MD Research Institute, established in October 2022, has integrated the product development bases of group companies. We will advance more efficient product development through menu development focused on yields through collaboration across business formats. In manufacturing, we are working to improve production efficiency through the expanded use of meal kits, while in logistics we are consolidating delivery hubs and reviewing delivery frequency.」

「We have continued to advance the group's merchandising capabilities, one of its strengths. We are working on menu development focused on improving yields on ingredients, reducing food waste, and improving cooking efficiency through the expanded use of meal kits. As a measure to address rising logistics costs, we are also consolidating delivery hubs and reviewing delivery frequency.」

「In research and development, we plan to establish the MD Research Institute (provisional name), which will centralize product development for the group, and advance menu development focused on improving yields on ingredients used through collaboration across business formats, as well as reduce food waste through more precise demand forecasting. In the production and procurement of raw materials, we will strengthen initiatives to promote aquaculture and hydroponic cultivation businesses, while in manufacturing we will work to improve production efficiency by reviewing factory functions and introducing meal kits.」

「We are advancing efforts to further improve efficiency in central-kitchen production lines, consolidate logistics hubs and optimize logistics operations overall.」

「We are working to further improve efficiency in central-kitchen production lines, consolidate logistics hubs and optimize logistics operations overall.」

「We are working to improve yields on ingredients used through menu innovations, reduce food waste, and consolidate logistics functions.」

「We are working to improve yields on ingredients used through menu innovations, reduce food waste, and consolidate logistics functions.」

「In particular, for ramen soup, we recently introduced an automated line for filling sachets. This is expected to make soup immediately available for use at stores while dramatically improving productivity at central kitchens.」

「Corowide MD has mitigated the impact of rising ingredient prices through medium-term contracts with suppliers and flexible procurement of spot products, while advancing in-house production of processed products such as yakiniku sauces, other sauces, hamburger patties and ramen soup. In addition, it is working to unify the specifications of various seasonings used by group companies, further improve inventory turnover for raw materials, products and supplies, and consolidate logistics functions.」

「On the cost side, we are working to improve the efficiency of advertising and promotional spending through the use of social media and tie-ups with television programs, improve yields on ingredients used through menu innovations, and limit the impact of rising ingredient prices through medium-term contracts with suppliers and flexible procurement of spot products. We are also continuing to promote in-house production of processed products such as yakiniku sauces, other sauces, hamburger patties and ramen soup. In addition, we are working to unify the specifications of various seasonings used by group companies, further improve inventory turnover for raw materials, products and supplies, and consolidate logistics functions.」

「We are continuing to promote in-house production at our central kitchens of processed products such as yakiniku sauces, other sauces, hamburger patties and ramen soup. We are also working to unify the specifications of various seasonings used by group companies, further improve inventory turnover for raw materials, products and supplies, and consolidate logistics functions.」

「On the cost side, we are working to minimize the impact of rising ingredient prices through improved yields on ingredients used by refining the menus, medium-term contracts with suppliers and flexible procurement of spot products. We have also promoted in-house production at our central kitchens of processed products such as yakiniku sauces, other sauces, hamburger patties and ramen soup, while working to unify the specifications of various seasonings used by group companies, improve inventory turnover for raw materials, products and supplies, and consolidate logistics functions.」

「On the cost side, we worked to minimize the impact of rising ingredient prices by improving yields on ingredients used through menu innovations, entering into medium-term contracts with suppliers and flexibly procuring spot products. We also promoted in-house production at our central kitchens of processed products such as yakiniku sauces, other sauces, hamburger patties and ramen soup, while working to improve inventory turnover for raw materials, products and supplies, unify the specifications of various seasonings used by group companies, and consolidate logistics centers.」

「On the cost side, we worked to minimize the impact of rising ingredient prices by improving yields on ingredients used through menu innovations, and advanced flexible procurement in response to price fluctuations, supplier selection, medium-term contracts and upgrades to the ordering system. In addition, the Nagahama Plant was newly established and fully launched to further promote in-house production of processed products, while we also worked to standardize the specifications of various seasonings used by group companies, improve productivity at central kitchens, and consolidate logistics centers by region.」

「On the cost side, we worked to minimize the impact of rising ingredient prices by improving yields on ingredients used, and advanced flexible procurement in response to price fluctuations, supplier selection, medium-term contracts and upgrades to the ordering system. In addition, to further promote in-house production of processed products, we established and fully launched the Nagahama Plant, while also working to standardize the specifications of various seasonings used by group companies, improve productivity at central kitchens, and consolidate logistics centers by region.」

「To minimize the impact of rising ingredient prices, we worked on flexible procurement in response to price fluctuations, supplier selection, medium-term contracts and upgrades to the ordering system. We also continued efforts to promote in-house production of processed products, standardize the specifications of various seasonings used by group companies, improve productivity at central kitchens, and consolidate logistics centers by region.」

「On the cost side, we worked to minimize the impact of rising ingredient prices by selecting suppliers, entering into medium-term contracts and upgrading the ordering system. We also continued efforts to promote in-house production of processed products, standardize the specifications of various seasonings used by group companies, improve productivity at central kitchens, and make logistics systems more efficient, including by establishing produce depots.」

「On the cost side, we responded flexibly to a stronger yen when procuring imported meat and minimized the impact of soaring vegetable prices through medium-term contracts with suppliers. We are also continuing efforts to standardize the specifications and suppliers of various seasonings used by group companies, narrow the range of ingredients used based on menu revisions, produce processed products in-house, and improve production efficiency at central kitchens.」

「We are working to control the cost of sales and SG&A expenses through the flexible procurement of imported meat in response to the stronger yen, standardizing the specifications and suppliers of various seasonings used by group companies, narrowing the range of ingredients used based on menu revisions, producing processed products in-house, revising the food ordering system in preparation for reorganizing logistics across the group, and upgrading skills at central kitchens.」

「We are working to control the cost of sales and SG&A expenses through flexible procurement of imported meat and other products in response to the stronger yen, narrowing the range of ingredients used based on menu revisions, promoting in-house production of various processed products, improving the efficiency of the group-wide food ordering system, and upgrading cost management and manufacturing skills at central kitchens.」