Higher Personnel Expenses Due to Labor Shortages and Surging Raw Material Prices

「In the food-service industry, severe labor shortages continue, while robotization and automation are progressing to reduce labor requirements, and the business structure itself is undergoing significant change with the spread of generative AI.」

「Selling, general and administrative expenses increased ¥43.57 million year on year to ¥2,370.20 million. This was mainly due to increases in labor costs resulting from labor shortages and depreciation and other expenses associated with store renovations.」

「Looking ahead, Japan faces a range of persistent issues, including higher crude oil prices and prices generally, rising labor costs, and labor shortages, and the outlook remains unpredictable.」

「Meanwhile, the food-service industry continued to face uncertain conditions due to unstable international conditions, rising resource prices and general prices, and chronic labour shortages.」

「Demand in the food service industry is steadily recovering, but challenging conditions continue due to soaring raw material and electricity prices, changes in customers' values and consumer behavior, and chronic labor shortages.」

「Demand in the food service industry is recovering, but challenging conditions continue due to changes in lifestyles and consumer behavior, the prolonged rise in prices of energy resources and raw materials, and labor shortages.」

「During the first quarter under review, there were no material changes in the occurrence of major risks that management recognizes could materially affect the company's financial condition, operating results or cash flows, among the matters concerning business conditions, financial conditions and other matters described in the quarterly securities report, or in the section titled "Business and Other Risks" in the securities report for the previous fiscal year.」

「Selling, general and administrative expenses increased ¥574.01 million year on year to ¥2,541.24 million. This was mainly due to increases in various costs, including labor and utilities, accompanying the increase in sales.」

「During the first 2 quarters under review, there were no material changes in the occurrence of major risks that management recognizes could materially affect the company's financial condition, operating results or cash flows, among the matters concerning business conditions, financial conditions and other matters described in the quarterly securities report, or in the section titled "Business and Other Risks" in the securities report for the previous fiscal year.」

「During the first quarter under review, there were no material changes in the occurrence of major risks that management recognizes could materially affect the company's financial condition, operating results or cash flows, among the matters concerning business conditions, financial conditions and other matters described in the quarterly securities report, or in the section titled "Business and Other Risks" in the securities report for the previous fiscal year.」

「During the first 3 quarters under review, there were no material changes in the occurrence of major risks that management recognizes could materially affect the company's financial condition, operating results or cash flows, among the matters concerning business conditions, financial conditions and other matters described in the quarterly securities report, or in the section titled "Business and Other Risks" in the securities report for the previous fiscal year.」

「In this industry, a challenging business environment continues due to individuals' persistent tendency to economize and higher recruiting expenses, labor costs and logistics costs resulting from tight labor supply and demand.」

「During the cumulative third quarter, there were no newly arising business risks. There were also no material changes in the business risks described in the securities report for the previous fiscal year.」

「During the cumulative second quarter, there were no newly arising business risks. There were also no material changes in the business risks described in the securities report for the previous fiscal year.」

「In addition to the failure to meet the sales plan, higher recruitment costs and labor costs, including higher hourly wages, due to labor shortages, as well as soaring raw material prices, resulted in operating income declining 64.8% year on year to ¥17.12 million and ordinary income declining 42.5% to ¥28.75 million.」

「During the cumulative third quarter, there were no newly arising business risks. There were also no material changes in the business risks described in the securities report for the previous fiscal year.」

「During the cumulative second quarter, there were no newly arising business risks. There were also no material changes in the business risks described in the securities report for the previous fiscal year.」

「During the cumulative first quarter, there were no newly arising business risks. There were also no material changes in the business risks described in the securities report for the previous fiscal year.」

「In this industry, the working-age population is continuing to shrink as the population ages and the birthrate declines. Competition to secure personnel with other companies in the same industry is intensifying, driving up recruiting expenses and labor costs. Combined with soaring raw material costs, particularly for fresh foods, this has resulted in a challenging business environment that continues.」

「Amid higher recruitment expenses due to labor shortages, we recorded an operating loss of ¥162.86 million, compared with an operating loss of ¥240.97 million in the same quarter of the previous year, an ordinary loss of ¥163.48 million, compared with an operating loss of ¥251.21 million in the same quarter of the previous year, and a quarterly net loss of ¥155.63 million, compared with a quarterly net loss of ¥265.82 million in the same quarter of the previous year.」

「During the cumulative second quarter, there were no newly arising business risks. There were also no material changes in the business risks described in the securities report for the previous fiscal year.」

「In this industry, competition is intensifying not only with other food service businesses but also with companies in other industries as demand for prepared foods grows. A challenging business environment continues due to higher recruiting expenses and labor costs resulting from labor shortages, as well as soaring raw material prices. In addition, the increase in labor costs caused by labor shortages and the upfront burden of wedding-related promotional expenses resulted in an operating loss of ¥154.97 million.」