Mindset reform through a 'return to our roots' and a review of the home-delivery sales system

「We also raised prices for core products from April, but believe customers accepted the increase to a certain extent because we improved and maintained quality and communicated these improvements. In addition, we strengthened operation of our official LINE account and renewed our corporate website to improve our appeal to digital-generation customers, and in November aired television commercials to raise awareness, sending direct mail to the target segment in conjunction with the commercials and achieving a certain level of results.」

「From April, we raised the prices of some core products by 8–9%. To improve service and product quality, we began offering higher-quality products centered on local ingredients, including branded pork, and renewed the returnable insulated boxes delivered to customers. At the same time, we focused on creating a more employee-friendly work environment by raising base salaries from the wages paid in August and introducing an electronic workflow system company-wide to enable faster internal approvals, thereby promoting employee retention.」

「During the consolidated fiscal year, our Group worked to improve its business structure under the goal of “cultivating earning power.” We focused on initiatives including converting personnel expenses into variable costs, beginning with the optimization of employee numbers implemented since the previous fiscal year, reviewing procurement methods for fresh foods, bringing some processed products in-house and strengthening cost control when preparing menus. However, gross profit and operating profit declined as a result of increases in raw materials and other costs that exceeded these efforts. Going forward, we will seek to improve profitability by increasing labor savings and reviewing our cost structure.」

「Under these circumstances, our Group has worked to improve its business structure under the goal of “cultivating earning power.” In cost of sales, we continued initiatives begun in the previous fiscal year to improve productivity, while also reviewing procurement methods for fresh foods through the purchasing department, bringing some processed products in-house and implementing thorough cost control when preparing menus. Although we expect these initiatives to stabilize costs to produce results in the second half, the reductions did not reach the level needed to offset the decline in sales, resulting in an operating loss.」

「We also began a major review of our business structure. In manufacturing, we are reviewing work processes, automating operations and reducing labor hours through the active introduction of shift work and multi-skilled workers. In home delivery, we are creating systems that enable automated delivery efficiency and support “flexible working styles,” with the aim of cultivating our “earning power” through this transformation of the overall business structure.」

「Under these circumstances, our Group has actively pursued new initiatives while fulfilling its role as social infrastructure to an even greater extent than before. We are expanding the product lineup of “Meafill,” the new brand released last October, and have begun selling frozen desserts from Fujiya, with which we formed a business alliance, and collaborative products with our ambassador, Shimatani Hitomi (島谷ひとみ). In the existing food home-delivery business, we are continuing to strengthen the menu lineup for core menu kits through collaborations with several well-known restaurant chains, launched last December, and are preparing additional initiatives. As demand for prepared food declines, we will explore and actively develop new sales methods and sales opportunities to meet market needs. As the frozen-food vending-machine business has grown, we have newly organized a dedicated department and will continue to expand the business.」

「We launched “Meafill,” a new app-exclusive brand for younger customers, and “Speedish,” a time-saving menu for weekends, and began sales in October. In our existing food home-delivery business, we also began strengthening the menu lineup for our core “Eco Cook” menu kits through collaborations with several well-known restaurant chains from the third quarter, and produced new television commercials featuring Shimatani Hitomi (島谷ひとみ), which began airing in October to further strengthen our sales structure in the Tokai and Kansai regions.」

「From April, we began trial sales of “Otokuck,” a low-priced menu that maintains the same portion size. Customer response has been favorable, and we will strengthen our marketing strategy to expand sales channels beyond existing customers. We have also begun distributing video content featuring our official ambassador, singer Shimatani Hitomi (島谷ひとみ), including videos of her preparing our home-delivery menus.」

「Our marketing strategy has focused on raising awareness and providing product information through television commercials and paid search advertising, but we have changed the focus to a strategy of strengthening promotion through social media and will enhance communications aimed at new customer segments.」

「Under these circumstances, our Group has actively pursued expansion of sales channels and alliances with companies while fulfilling its role as social infrastructure to an even greater extent than before and exploring businesses that could become a second or third core business. We have been releasing new products sequentially from the private-label products developed since the current fiscal year began, and will pursue this initiative more actively by strengthening the personnel and equipment involved in product development. Consumers nationwide are already purchasing these new products through various e-commerce sites, and we will continue to focus on building a highly convenient system.」

「Under these circumstances, our Group has actively pursued new initiatives while fulfilling its role as social infrastructure to an even greater extent than before. We have begun selling our own private-label products on a sequential basis and are continuing to develop new private-label products. In November, we began selling “Aichi Mikawa Beef Fruit Curry,” supervised by a chef who formerly served as the Imperial Household chef, and subsequently plan to begin selling “Aichi Mikawa Beef European-Style Curry” and “Nostalgic Retro Curry.” Going forward, we will focus on building a system that enables consumers nationwide to purchase these products through our e-commerce site, in addition to sales through our regular menu book. For the year-end shopping season, we have already secured popular products that were difficult to obtain at the end of last year, and will enhance our appealing product lineup, including by adding specialties from the Tokai region, to increase sales.」

「Under these circumstances, our Group has actively pursued new initiatives while fulfilling its role as social infrastructure to an even greater extent than before. We entered into an authorized-dealer agreement with 株式会社サンクック, whose main business is selling and delivering dinner ingredients mainly in Hamamatsu, Shizuoka Prefecture, and began supplying our menus and ingredients in western Shizuoka Prefecture on 20 June 2022. We are currently strengthening advertising and promotional activities to increase new customers in the Hamamatsu area. We also began selling our internally developed private-label product “Shunmi Hyakusen” through an e-commerce site, and will begin selling “Gold Simmered Fish,” “Gold Simmered Beef Steak” and “Silver Yellowtail Collar,” among other products, from August. We are also considering selling these internally developed private-label products through mass retailers and other outlets.」

「To acquire new customers, our Group has actively built a broader sales network by opening the Izumiotsu sales office for the first time in approximately 11 years, rolling out a one-meal ¥290 trial campaign available at approximately half the regular price, introducing new products including alcoholic beverages and chilled products such as cut fruit and sushi, and opening an online shopping site serving customers nationwide. We also focused on developing our own private-label products, including the “Gold XX” and “Silver XX” series, which are scheduled to go on sale shortly.」

「Under these circumstances, our Group actively pursued and implemented measures including opening new sales offices to quickly provide services that meet customer needs and develop new customers, partnering with logistics companies to address labor shortages, launching sales of alcoholic beverages and opening an online shopping site serving customers nationwide. Going forward, in addition to continuing to open new bases, we will further strengthen synergies with the Shinmei Group to meet customers’ broad range of needs by developing and actively selling our own private-label products focused on taste and quality, introducing new chilled products centered on cut fruit and sushi, and expanding our product and service offerings, including by reviewing existing standard menus. To raise awareness of the Company and acquire new customers, we will strengthen advertising and promotional activities while assessing cost-effectiveness, enhance our social media strategy in addition to television commercials, and implement measures to attract a broader range of customers, including the “¥290 Trial Campaign.”」

「Under these circumstances, our Group will actively pursue and implement new businesses, including opening new sales offices and selling alcoholic beverages, in order to quickly provide services that meet customer needs and develop new customers.」

「However, partly because of the aggressive rollout of the low-price “Trial Campaign” to acquire new customers and increases in the prices of some raw materials, the cost-of-sales ratio remained slightly higher than budget.」

「As people’s lifestyles change and their needs become more diverse, the importance of digital marketing has increased. In addition to conventional mass advertising through television commercials and leaflet distribution, we will increase digital promotions, including campaigns to attract followers on social media, campaigns to encourage app usage and online paid search advertising, in order to raise awareness of the Company and acquire new customers. Head office Marketing Department CRM system investment ¥120 million April 2022 to March 2023」

「To address these circumstances, our Group is pursuing 3 measures: ① improving management efficiency through the consolidation and integration of operating bases, ② efforts to reduce costs, and ③ a thorough review of expenses. At the same time, it has begun optimizing delivery routes and strengthening its marketing and digital capabilities, and is working to establish a stronger home-delivery system.」

「However, to address these circumstances, our Group is pursuing 3 measures: ① improving management efficiency through the consolidation and integration of operating bases, ② efforts to reduce costs, and ③ a thorough review of expenses. At the same time, it has begun optimizing delivery routes and strengthening its marketing and digital capabilities, and is working to establish a stronger home-delivery system.」

「However, to address these circumstances, our Group is strengthening the home-delivery system for individual customers through measures including stronger sales capabilities and reviews of menu costs and selling prices, while also improving unprofitable sales offices and reviewing costs to increase profit.」

「We will strengthen our sales capabilities by renewing the regular “My Menu” offering and revising its menu structure to incorporate measures addressing the issues faced previously, as follows. 1. We improved the menu for “Eco Cook,” our core à la carte menu, by adding selectable options so that customers can choose menus according to their preferences. 2. We developed new time-saving menus that allow customers to enjoy authentic home cooking while reducing preparation time. 3. We introduced a “One More Dish” section, which allows customers to increase the quantity of food according to their family composition. 4. We launched a points-reward service for customers who use the service continuously, as well as online ordering for customers who are busy.」

「To address these circumstances, our Group will strengthen the home-delivery system for individual customers by enhancing its product offering, including new businesses, reviewing sales areas and optimizing its delivery network, while also improving unprofitable sales offices and reviewing costs to increase profit.」

「Under these circumstances, we will review our management structure as a whole to make the Company capable of responding to any business environment. Our Group will strengthen the home-delivery system for individual customers and promote higher sales, while also improving unprofitable business locations and reviewing manufacturing costs to increase profit.」

「Under these circumstances, since the previous fiscal year our Group has used “returning to the basics” as its key theme, with all employees going back to the fundamentals and reviewing the management structure as a whole.」

「Under these circumstances, our Group will continue to strengthen the sales structure for its core direct-to-consumer home-delivery business and work to secure stable sales by seeking to increase sales and orders.」

「Under these circumstances, in addition to continuing to strengthen the sales structure for our core direct-to-consumer home-delivery business, our Group will seek to further increase sales and orders in its corporate-care-food business by leveraging the expertise developed through its home-delivery business, thereby working to secure stable sales.」

「Under these circumstances, the effects of our Group’s ongoing efforts to “return to the basics” have gradually begun to emerge as this approach has started to take root among employees as a whole. Going forward, we will continue to review the sales system for the direct-to-consumer home-delivery business and strengthen our sales structure in order to increase orders and secure stable sales.」

「Under these circumstances, since the previous fiscal year our Group has used “returning to the basics” as its key theme, with all employees going back to the fundamentals and reviewing the management structure as a whole.」

「Under these circumstances, since last year our Group has used “returning to the basics” as its key theme, with all employees going back to the fundamentals and reviewing the management structure as a whole.」

「Under these circumstances, using “returning to the basics” as its key theme, all employees are going back to the fundamentals and reviewing the management structure as a whole.」

「Under these circumstances, our Group adopted “returning to the basics” as its guiding principle and undertook a reform of employee mindsets, while also reviewing the sales system for its core direct-to-consumer home-delivery business.」