Consolidation of business formats and strengthening of core brands

「In Japan, openings were centered on “GYUKAKU Yakiniku Shokudo,” “OOTOYA” and “Café Veloce,” while overseas we opened GYUKAKU and GYUKAKU Yakiniku Shokudo stores in Taiwan and HUNTER & BARREL stores in Australia.」

「In the domestic food-service business, in addition to opening new restaurants, we are working to expand our café business following C-United’s integration into the Group.」

「In the domestic food-service business, we opened stores under a diverse range of brands, including 牛角焼肉食堂, とんかつ神楽坂さくら and 大戸屋.」

「In Japan, we are primarily opening restaurants in suburban and roadside locations and shopping centers. In particular, 牛角焼肉食堂, a food-court concept developed by 牛角, has grown to more than 60 stores, while とんかつ神楽坂さくら has also grown to more than 40 stores.」

「Regarding store openings and closures, we opened 94 company-operated restaurants and 12 company-operated izakaya, for a total of 106 stores, while closing 48 company-operated restaurants and 19 company-operated izakaya, for a total of 67 stores. As a result, the number of company-operated stores at the end of the consolidated fiscal year was 1,403, while the total number of stores, including franchises, was 2,583. Restaurants accounted for 90% of total stores, demonstrating steady progress in optimizing our business portfolio.」

「In our domestic food-service business, we are opening restaurants, including 牛角 and its derivative formats, 焼肉カルビ大将 and 大戸屋ごはん処, primarily in suburban and roadside locations to adapt to lifestyle changes brought about by COVID-19, with the aim of recovering the net reduction in company-operated stores during the pandemic. We are also renovating, relocating and converting aging stores to different formats to lift same-store revenue and restore profitability.」

「In our domestic food-service business, we are opening restaurants, including 牛角 and its derivative formats, 焼肉カルビ大将 and 大戸屋ごはん処, primarily in suburban and roadside locations, to adapt to lifestyle changes brought about by COVID-19. We have also opened new formats, such as 蕎麦処大戸屋, to capture new demand. In addition, we are renovating aging stores and converting them to different formats to lift same-store revenue and restore profitability.」

「To adapt to changes in the business environment, we are reviewing store locations, business formats, and operating hours, while expanding menus suited to individual dining and demand from small groups.」

「Specifically, in response to the shift from central urban and building-integrated locations to suburban and roadside locations and from demand for alcohol to demand for meals, we are reviewing store locations and opening and closing stores, while converting izakaya-format stores with slow sales recovery to restaurant formats and pursuing an opening strategy suited to locations and consumer needs.」

「Specifically, we are gradually shifting store locations from business districts and integrated building sites toward suburban and residential areas, bringing forward opening times to move away from late-night operations. Regarding menus, in both restaurant and izakaya formats, we are shifting the focus from demand for alcoholic beverages to demand for meals and working to expand menus suited to individual diners and small groups.」

「As measures to adapt to changing consumer preferences and new foot-traffic trends, we will begin converting alcohol-focused formats to restaurant formats, changing store layouts from accommodating large groups to serving individual and small-group customers, reviewing menus, changing store hours to suit each location by opening earlier and reducing late-night hours, and developing and selling products that reflect changing preferences.」

「Conversion and consolidation of business formats, improving ingredient yields through menu planning, and reducing food waste through more precise demand forecasting」

「Conversion and consolidation of business formats, improving ingredient yields through menu planning, and reducing food waste through more precise demand forecasting」

「On the cost side, we are scrutinizing cost-effectiveness and making every effort to lower the break-even point. Specifically, we are working to restrain investment in new store openings; revitalize human resources and reduce personnel expenses through appropriate employee transfers; reduce costs by reviewing various contracts, including lease agreements for rented properties; consolidate business formats and close a large number of unprofitable stores; improve ingredient yields through menu planning; reduce food waste through more precise demand forecasting; and consolidate logistics hubs.」

「Regarding store strategy, we consolidated and closed stores, primarily in the izakaya format, from the perspective of “capturing future value.”」

「Short-term mission: ① Promote the consolidation, closure, and conversion of izakaya-format stores in response to changes in consumption patterns」

「Accordingly, we analyzed customer needs and further refined the concepts of our core formats, while developing new formats and providing a variety of more convenient and compelling services.」

「Accordingly, we analyzed customer needs and further refined the concepts of our core formats, while working to provide a variety of more compelling services and further improve employee skills and motivation.」

「Accordingly, we analyzed customer needs and further refined the concepts of our core formats, while providing new services such as sushi delivery and all-you-can-eat options at lunchtime and dinnertime.」

「To date, we have expanded our restaurant business through M&A after starting with the izakaya business. Going forward, we will promote the revitalization of the izakaya format by converting it to the optimal brands in line with consumer needs.」

「Accordingly, we reconsidered the alignment between customer needs and the positioning of our core formats and further refined their concepts, while also working to develop new formats based on new ideas.」

「Accordingly, we analyzed customer needs, reconfirmed the positioning of our core formats, and further refined their concepts, while also working to develop new formats ahead of changing trends.」

「Against this backdrop, the Group is consolidating business formats and further clarifying and refining the concepts of its core brands in line with changes in the times, while continuing to strengthen its financial position and earnings structure and promote greater efficiency and maximum synergies across the Group.」

「Accordingly, we analyzed customer needs, reconfirmed the positioning of our core formats, and continued to further refine their concepts.」

「Accordingly, we analyzed customer needs, reconfirmed the positioning of our core formats, and continued to further refine their concepts.」

「Accordingly, we analyzed customer needs, reconfirmed the positioning of our core formats, and further refined their concepts.」

「Accordingly, we consolidated business formats and worked to strengthen the brands of our core formats, while further refining format concepts, promoting the value proposition of banquet course menus, and offering regional limited-time menus using local ingredients.」

「We are further consolidating business formats, particularly those with a small number of stores, and strengthening the brands of our core formats, while reconfirming their positioning and refining their concepts.」

「Accordingly, we are consolidating business formats and strengthening the brands of our core formats, while reconfirming their positioning and further refining their concepts.」