Cost controls and workforce reallocation during COVID-19

「We are also working to consolidate food delivery centers and optimize delivery frequency, and continue initiatives to improve logistics efficiency further.」

「In response to soaring raw material prices, we established the COLOWIDE MD Research Institute in October last year to develop products efficiently by integrating the product development divisions of Group companies. We are advancing the standardization of raw materials and specifications, menu development focused on improving yields, and reductions in raw material waste, among other initiatives.」

「In response to changes in the business environment driven by advancing inflation, including soaring raw material prices and higher logistics costs, we have continued to advance the Group's merchandising capabilities, one of its strengths. We have developed menus with a focus on improving ingredient yields, reduced food waste, and improved cooking efficiency by promoting the conversion of products into meal kits. We have also consolidated delivery centers and reviewed delivery frequency as measures to address higher logistics costs.」

「To this end, the company revitalised its workforce through appropriate employee reassignments, introduced serving robots, reduced labour costs based on calculating suitable working hours to the minute, and reduced costs by reviewing various contracts including rent agreements for leased properties.」

「On the cost side, the company continues to scrutinise cost-effectiveness and is working diligently to lower its break-even point. To this end, it is revitalising its workforce through appropriate employee reassignments, reducing labour costs based on calculating suitable working hours to the minute, reducing costs by reviewing various contracts including rent agreements for leased properties, converting or consolidating business formats, improving ingredient yields through menu innovation, reducing food waste losses through more precise demand forecasting, further improving efficiency in central kitchen production lines, consolidating logistics centres and optimising logistics overall.」

「In terms of costs, we have continued to scrutinize cost effectiveness and work diligently to reduce the breakeven point. Accordingly, we are pursuing measures including optimizing personnel allocation and working hours to improve workforce utilization and reduce labor costs, compressing costs by reviewing various contracts, including rent contracts for leased properties, changing or consolidating business formats, improving ingredient yields through menu planning, reducing food waste through more precise demand forecasts, further improving efficiency in central kitchen production lines, consolidating logistics centers and optimizing logistics operations overall.」

「We improved the breakeven point by 17.6% compared with the fiscal year ended March 2020.」

「In terms of costs, we worked to scrutinize cost effectiveness and reduce the breakeven point. Measures included restraining investment in new store openings, improving workforce utilization and reducing labor costs through appropriate personnel reallocation, compressing costs by reviewing various contracts, including rent contracts for leased properties, improving ingredient yields through menu planning, reducing food waste through more precise demand forecasts and consolidating logistics functions.」

「Through these measures, selling, general and administrative expenses were reduced by ¥15.7 billion from the corresponding period of the previous year, and we expect this reduction to make a significant contribution to future results.」

「In terms of costs, we worked to minimize nonessential spending. Specifically, we restrained investment in new store openings, asked part-time and temporary employees at closed stores to remain at home under leave compensation arrangements, improved workforce utilization efficiency by reallocating regular employees and reduced rents on leased properties.」