Higher response costs resulting from tighter legal regulations
First written in FY2017. 1 of 3 entries say "Restated". Latest entry: FY2021.
Yoshinoya Holdings moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2023: 4 of 12 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2021WorsenedAnnual report
「The group also operates under franchise agreements in Japan and overseas, and deficiencies or violations by franchisees may damage the group’s reputation.」
In addition to the previously disclosed risk of tighter regulations and higher compliance costs, the company explicitly identified the potential for deficiencies or violations by franchisees under laws and institutional requirements to damage its reputation. - FY2018RestatedAnnual report
「If these legal regulations are tightened, new costs of compliance may increase and affect performance.」
The risk of tighter regulations concerning food sanitation, store facilities, labor and the environment and higher compliance costs continues. - FY2017First statedAnnual report
「In addition to general laws such as the Companies Act, the Financial Instruments and Exchange Act and the Corporation Tax Act, the group is subject to various regulations and institutional restrictions relating to store operations, including food sanitation, store facilities, labor and the environment. If these legal regulations are tightened, new costs of compliance may increase and affect performance.」
The company cites the potential for tighter regulations concerning food sanitation, store facilities, labor and the environment to increase compliance costs.