Cost reductions, including lower utility expenses

「Meanwhile, on the earnings front, initiatives aimed at “redesigning the earnings structure model” are progressing faster than expected. These include optimizing personnel allocation across the group in connection with the one-company structure implemented from the current fiscal year, consolidating procurement and logistics functions, reforming store operations through the use of DX, reviewing various expenses, and improving operating efficiency by accelerating store openings in urban areas.」

「The company is redesigning operations through the use of DX and the introduction of new store equipment, and is reforming its F&L structure, the productivity structure centered on food costs and labor costs.」

「Fiscal 2024: 12 locations → consolidated into 7 locations」

「Specifically, focusing on the core formats "Ogiya" and "Beni-ton," which have been a priority to date, the company is strengthening its product offering under the theme of "back to basics," including improving the quality of core products and charcoal-grilling techniques. At the same time, it is rigorously pursuing initiatives to increase value added per customer through menu revisions and reviews of the menu mix, as well as cost control through measures such as reducing food waste.」

「Against this backdrop, the Group focused on improving its earnings structure to address challenges including labor shortages, rising costs, and changes in the business environment. It worked to improve gross profit per customer through menu revisions and reconfiguration of the menu mix, lower cost of sales by reducing food waste, and higher labor productivity through reviews of store operating procedures.」

「The company worked to improve its earnings structure through improved gross profit per customer via menu revisions and the menu mix, lower cost of sales through reduced food waste, and higher labor productivity through reviews of store operating procedures.」

「Based on its business revitalization plan, the company worked to reduce costs through head-office cost reductions, improved gross profit per customer through menu revisions and the menu mix, lower cost of sales through reduced food waste, and higher labor productivity through reviews of store operating procedures.」

「Based on its business revitalization plan, the company is working to reduce costs through head-office cost reductions, improved gross profit per customer through menu revisions and the menu mix, lower cost of sales through reduced food waste, and higher labor productivity through reviews of store operating procedures, while」

「Based on its business revitalization plan, the company is working to reduce costs through head-office cost reductions, improved gross profit per customer through menu revisions and the menu mix, lower cost of sales through reduced food waste, and higher labor productivity through reviews of store operating procedures, while」

「Through rigorous control of food waste and measures to improve gross profit, the gross profit margin improved by 0.5 percentage points from the previous consolidated fiscal year to 67.1%.」

「The company is working to reduce costs through head-office cost reductions, improved gross profit per customer through menu revisions and the menu mix, lower cost of sales through reduced food waste, and higher labor productivity through reviews of store operating procedures.」

「During the nine-month period ended 31 December of the current fiscal year, when the business environment had improved, our Group was able to effect a definite change in its earnings structure as a result of the business structure reforms carried out since the previous fiscal year under the Business Rehabilitation Plan. These reforms included reducing head office costs, improving customer gross profit through menu revisions and the menu mix, improving costs by reducing food waste, and improving labor productivity by reviewing store operating procedures.」

「In response to these circumstances, based on its business revitalization plan, the company worked to reduce costs through head-office cost reductions, improved gross profit per customer through menu revisions and the menu mix, lower cost of sales through reduced food waste, and higher labor productivity through reviews of store operating procedures.」

「In response to these circumstances, based on its business revitalization plan, the company is working to reduce costs through head-office cost reductions, improved gross profit per customer through menu revisions and the menu mix, lower cost of sales through reduced food waste, and higher labor productivity through reviews of store operating procedures.」

「In response to these circumstances, the company is working to reduce costs and implement fundamental reforms to address its business challenges through measures including lower fixed costs from withdrawing from unprofitable stores, head-office cost reductions, improved gross profit per customer through menu revisions and the menu mix, lower cost of sales through reduced food waste, higher labor productivity through reviews of store operating procedures, and the solicitation of voluntary early retirements.」

「Regarding earnings improvement, the company is working to reduce costs through measures including lower fixed costs from withdrawing from unprofitable stores, head-office cost reductions, improved gross profit per customer through menu revisions and the menu mix, lower cost of sales through reduced food waste, and higher labor productivity through reviews of store operating procedures.」

「Against this backdrop, with "same-store sales growth and cost reductions" as the central pillars, the company negotiated rent reductions, reduced fixed costs by cutting head-office labor expenses and other costs, restrained new investment, and controlled store labor costs to minimize expenditures, while」

「Regarding cost of sales, the cost-of-sales ratio improved by 1.2 percentage points from the previous fiscal year, owing to measures such as securing gross profit through the menu mix.」

「Although the labor-cost ratio increased due to higher hourly wage rates and costs increased because of higher logistics expenses and other factors, the SG&A ratio decreased by 0.4 percentage points from the same quarter of the previous year, owing to reviews of outsourcing and transportation expenses, lower depreciation resulting from the decrease in the number of stores, and savings in consumable supplies and utilities.」

「Although expenses such as outsourcing and transportation costs were reviewed and depreciation declined due to the decrease in the number of stores, the SG&A ratio increased by 0.2 percentage points from the same quarter of the previous year because of higher labor-cost ratios resulting from increased hourly wage rates and higher logistics costs and other expenses.」

「Although costs increased due to higher logistics expenses and other factors, the SG&A ratio decreased by 0.2 percentage points from the same quarter of the previous year, owing to reviews of expenses such as outsourcing and transportation costs and lower depreciation due to the decrease in the number of stores.」

「Specific measures include reducing head-office costs, lowering labor costs by improving store operations, and reducing costs through menu initiatives. They also include customer-traffic measures such as customer-oriented business operations, promotional activities through effective messaging, continuous enhancement of core products, and service reform.」

「This was mainly due to cost reductions in consumable supplies, tableware, and other items.」

「Regarding SG&A expenses, the company made thorough efforts to reduce costs such as utilities and consumable supplies and to manage working hours. However, higher hourly wage rates and construction-material prices, costs associated with transferring the listing to the First Section of the Tokyo Stock Exchange, and higher costs associated with the increase in the number of shareholders resulted in a 0.5-percentage-point increase in the ratio of SG&A expenses to net sales from the same period of the previous year.」

「Regarding cost of sales, food-ingredient unit prices remained stable, and the cost-of-sales ratio decreased by 0.7 percentage points from the same period of the previous year. Regarding SG&A expenses, the company implemented cost reductions, including lower utility expenses, but」

「By implementing cost reductions, including lower utility expenses, the SG&A ratio increased by only 0.3% from the previous year.」