Emergency Measures in Response to COVID-19 and Post-COVID Strategy

「Delivery, which expanded during the COVID-19 pandemic, was further expanded from 546 stores to 574 stores, including franchised stores, and sales remained strong even after the spread of infections subsided.」

「The company established a structure to meet increased demand for takeout and delivery accompanying the spread of COVID-19 by introducing advance reservations and advance payment for takeout orders, launching the takeout boxed-meal Renchin Series, adding dedicated takeout counters at stores, and expanding delivery service to 560 stores, including franchised stores, thereby significantly reducing the risk.」

「The company increased the number of directly operated restaurants offering delivery from 366 at the end of the previous fiscal year to 424, and the total including franchised restaurants from 413 to 484. It also increased the number of restaurants offering multiple platforms, including Demae-can, Uber Eats and menu, substantially raising delivery coverage.」

「For delivery services, the number of directly operated stores offering delivery was increased from 366 at the end of the previous fiscal year to 400, and the total including franchised stores was increased from 413 to 458. We sought to improve convenience for users, including younger people, single-person households and homemakers, and achieved further growth in usage.」

「To address the downside risk to performance from the persistence of the COVID-19 pandemic, we significantly reduced the risk by expanding the takeout and delivery business to meet increased demand during the pandemic, improving convenience through advance reservations and advance payment for takeout orders, launching the new takeout boxed-meal Renchin Series, and expanding delivery service to 413 stores, including company-operated and franchised stores.」

「In addition, having anticipated an increase in takeout demand and introduced systems for advance reservations and payment at all directly operated restaurants, the company was able to respond to the sharp increase in demand caused by requests to refrain from going out, shorter operating hours for dine-in restaurants and the increase in working from home. In response to growing demand for delivery, it timely expanded the number of restaurants offering delivery services to 368, including franchised restaurants, enabling it to capture that demand. The company's individual restaurant initiatives, including actively conducting raw gyoza sales for customers cooking at home, also helped offset the decline in dine-in sales.」

「In addition, by expanding delivery service to 326 stores, including franchised stores, and actively holding fresh gyoza sales for customers who prepare food at home, the company offset the decline in dine-in sales and supported performance.」

「In response to increased demand for takeout from customers wishing to eat at home while avoiding the Three Cs, the company further expanded takeout by improving convenience through advance reservations and payment, launching the "Renchin Series" takeout bento meals that allow rice and side dishes to be heated together in a microwave, expanding the number of restaurants offering delivery services to 211, conducting regional and limited-time raw gyoza sales for customers cooking at home, and offering limited-time takeout sales of canned beer after obtaining licenses to sell alcohol for takeout at 100 restaurants in eastern Japan. These initiatives helped offset the decline in dine-in sales and supported business performance.」

「We believe that the biggest challenge for the fiscal year ending March 2021 is fluctuations in sales resulting from the spread of COVID-19. In response, we will implement the following emergency measures to secure sales and profits: ① strengthen measures to expand the takeout business and operate exclusively for takeout; ② bring forward opening times and test the introduction of breakfast; ③ temporarily close stores with substantial declines in sales; and ④ pursue store scrap-and-build initiatives.」