Risk of supply disruptions affecting ingredients, packaging materials and other supplies for franchisees
First written in FY2018. 1 of 4 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2022: 45 of 64 companies on the "Worse" side.
11 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「For certain materials for which supply concerns have arisen due to the situation in the Middle East, the Company has secured sufficient on-hand inventory and judges that there will be no material impact on future business performance.」
In response to supply concerns for certain materials arising from the situation in the Middle East, the Company has secured sufficient on-hand inventory and judges that there will be no material impact on business performance. - FY2022WorsenedAnnual report
「Natural disasters, pandemics, political instability, regional conflicts, surging prices or shortages of raw materials and components, cyberattacks or system failures affecting the Group or its business partners, and other factors could prevent the Company from supplying franchisees with food and packaging materials, consumables, kitchen equipment, furniture, signs and other items as planned.」
The scope of the supply suspension risk has expanded beyond food ingredients to packaging materials, consumables and kitchen equipment, with pandemics, political conditions, price increases, cyberattacks and system failures identified as contributing factors. - FY2019RestatedAnnual report
「In preparation for a suspension of food ingredient supplies from business partners, the Company is diversifying its supply routes and maintains sufficient inventory of certain major food ingredients to supply them stably from the Company to franchisees for several months.」
Diversification of supply routes and maintenance of several months' worth of inventory to address the risk of supply suspensions remain in place. - FY2018First statedAnnual report
「If the Group becomes unable to supply food ingredients to franchisees for any reason, this could affect its business performance. Accordingly, in preparation for a suspension of supplies from business partners, the Group is diversifying its supply routes and maintains sufficient inventory of certain major food ingredients to supply them stably from the Company to franchisees for several months.」
The Group recognizes the suspension of supplies to franchisees as a risk and is addressing it by diversifying supply routes and maintaining several months' worth of inventory.