Infection Control Measures and Business Structural Reform Through Takeout and Delivery

「The effects of the earnings-structure reforms pursued since the fourth quarter of the previous fiscal year have become apparent.」

「Based on 3 priority strategies—“redesigning and transitioning the earnings structure model,” “redefining the format model,” and “evolving the model for maximizing the contributions of our people”—we are pursuing “bold conversion to and investment in a new business model” that strengthens the earnings base while supporting a growth strategy.」

「Under “Future Plan Next,” we are pursuing “bold conversion to and investment in a new business model” that strengthens the earnings base while supporting a growth strategy, based on 3 priority strategies: “redesigning the earnings structure model,” “redefining the format model,” and “evolving the model for maximizing the contributions of our people.”」

「To move forward from the recovery phase aimed at achieving profitability to the renewed-growth phase, the company has continued to pursue format remodels, the development and testing of new concepts, and new store openings, and is gradually beginning to see results.」

「Through its structural reform initiatives to date, and in light of current conditions, the company plans to move from the revitalization phase focused on achieving profitability to the next phase of renewed growth. It will shift its store strategy, which has centered on restructuring toward an appropriate scale, to renewed expansion through new store openings, while launching remodeled formats and new concepts aimed at renewed growth.」

「In addition to the conversions in the previous fiscal year to 台湾まぜそば はなび and 名代宇奈とと, we converted 1 store to 炭火焼干物定食しんぱち食堂 during the current fiscal year.」

「In response to these circumstances, based on the business revitalization plan, we continue to reduce costs through head office cost reductions, improved gross profit per customer through menu revisions and menu mix changes, lower costs through reduced food waste, and higher labor productivity through a review of store operating procedures. We are also continuing to convert stores to new-concept formats suited to the with-COVID and post-COVID operating environment, remodel stores, and strengthen earnings power through services outside in-store dining such as takeout, delivery, and e-commerce.」

「In addition, to adapt to the business environment during and after the COVID-19 pandemic, we are promoting the conversion of stores into collaboration formats with food-driven concepts such as “Taiwan Mazesoba Hanabi” and “Nadai Unatoto,” as well as carrying out renovations of “Uoya Iccho” as a next-generation urban izakaya format, thereby strengthening customer attraction.」

「We are also converting stores into collaboration formats with dining-driven brands such as 台湾まぜそばはなび and 名代宇奈とと, suited to the with-COVID and post-COVID operating environment, while strengthening earnings power by adding new services such as takeout, delivery, and e-commerce.」

「In response to these circumstances, based on the business revitalization plan, we are working to reduce costs through head office cost reductions, improved gross profit per customer through menu revisions and menu mix changes, lower costs through reduced food waste, and higher labor productivity through a review of store operating procedures. At the same time, we are proceeding with format conversions suited to the with-COVID and post-COVID operating environment and strengthening earnings power by adding new services such as takeout, delivery, and e-commerce.」

「In response to these circumstances, we are implementing measures to fundamentally reform the business, including reducing fixed costs by withdrawing from unprofitable stores, cutting head office costs, improving gross profit per customer through menu revisions and menu mix changes, improving costs by reducing food waste, increasing labor productivity through a review of store operating procedures, and recruiting voluntary retirees. We are also proceeding with format conversions suited to the with-COVID and post-COVID operating environment, as well as strengthening earnings power by adding new services such as takeout, delivery, and e-commerce.」

「In response to requests from local authorities following the state of emergency declarations issued by the government on 7 and 13 January 2021 to prevent the spread of COVID-19, our group temporarily closed approximately 110 company-operated stores and reduced operating hours at approximately 180 stores.」

「To improve earnings, we will work 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 menu mix changes, lower costs through reduced food waste, and higher labor productivity through a review of store operating procedures. At the same time, we will restore operating profit by strengthening earnings power through new services such as takeout, delivery, and e-commerce.」

「In response to requests from local authorities to close stores following the government’s declaration of a state of emergency on 7 April 2020, our group temporarily closed approximately 200 stores, mainly izakaya-format locations, amid the spread of COVID-19. Following the lifting of the state of emergency on 25 May 2020, we resumed operations on 1 June.」

「Specifically, to reduce the risk of infection inside stores, we will prioritize the safety of customers and employees through measures such as spaced seating, employee health checks, thorough handwashing, and disinfection. We will also minimize expenditures by reducing fixed costs such as head office expenses, curbing new investment, and controlling store labor costs, while securing cash on hand through borrowings from financial institutions and other means. To secure earnings, we will pursue business structure reform by expanding sales during the daytime, expanding takeout and delivery, and beginning food sales, while actively drawing on external expertise.」