The spread of the financial crisis from the U.S. to the rest of the world has seriously affected the Japanese economy. The environment in which the catering industry does business is also facing tighter constraints. The influences affecting us today are by no means temporary. They will continue to reap damage in many forms in the years to come.

Though influenced by stagnating consumption, Yoshinoya Holdings also benefits from lower procurement costs, an improved employment environment, and other favorable conditions. We recognize the importance of understanding how our operations are affected, and of quickly mapping out realistic strategies to ensure the growth of our group.

The Group has been carrying out various measures to promote the theme of "Selection and Concentration."Though the rate of progress has varied from operation to operation, the stage is now shifting from "Selection" to "Concentration" in the group as a whole.

"The Next Stage 2010," our midterm management plan, is poised to succeed in its targets for transformation and growth by February 2011. Yet now that the plan has passed the halfway mark, we have found new problems affecting our activities. By concentrating on these problems, Yoshinoya Holdings Group is fully uniting to achieve the targets.

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