Reaffirming the policy “For the People” through providing support to people affected by the earthquake
Following the Great East Japan Earthquake that struck on March 11, 2011, our Group has strived to continue store operations and recover promptly to fulfill our mission as a group of life-supporting infrastructure companies. At the same time, we have engaged in outdoor meal preparation, fund raising and other activities to support the restoration of the devastated areas. Group-wide efforts are also being made to save electricity in order to cope with the electricity shortage.
All the employees of our Group have been able to reaffirm these activities give form to the Group management philosophy “For the People.” Our Group will continue to contribute to society as a corporate citizen by engaging in global environmental conservation and regional contribution activities, in addition to supporting restoration in the devastated areas.
Establishing new business models in response to market changes
The Japanese economy has declined against the background of global economic confusion. The harsh business environment has persisted for the restaurant industry as well, due to the shrinking of market scale, the further intensification of price competition, and other factors. Particularly in the past few years, a transitional period appears to have arrived where customers’ needs and the common sense of society are undergoing significant changes. In this situation, the conventional business models are no longer proving valid.
In view of this situation, our Group has engaged in various activities with the aim of re-establishing its brand values by restructuring the details of the business activities of each Group company.
The leading company of our Group, Yoshinoya in Japan, has worked to enhance its presence by improving the quality of its products, service, and all other aspects while keeping in mind the principal values “tasty, low-priced, and quick” that we esteem.
Similarly, Kyotaru, Don, Hanamaru, and Peter Pan Comoco have enhanced the value of their respective products and services and further strengthened the advantages of each business. The improvement of the businesses of each Group Company, including Yoshinoya, was undertaken first, followed by the implementation of plans geared toward future growth.
Work is also underway to build the foundations for supporting these growth strategies. Efforts are being made to develop organizations that are capable of further enhancing business efficiency and cost effectiveness by unifying the functions of food ingredients procurement, logistics, property development, construction management for stores, materials and machinery procurement and others of the Group, while at the same time promoting the integration of indirect tasks among the Group companies.
Establishing a global brand by accelerating overseas store development
The harsh business environment has persisted in Japan, but the situation differs if we look around the world. Particularly in China and other parts of Asia, the restaurant market has grown rapidly along with economic development. Our Group hopes to expand the store networks and take firm hold of the opportunities, primarily with Yoshinoya.
In China, for example, the number of Yoshinoya stores has been increased mainly in Beijing, Shanghai, Shenzhen, and other locations. Based on the know-how obtained through this experience, we will increase the number of stores in existing areas and make inroads into new areas. Among other Group companies, Hanamaru established stores in Shanghai and other cities in China, and Don launched a store in Taiwan. As can be seen, we have been focusing on developing our businesses overseas.
We will continue our strong focus on overseas development with the aim of establishing ourselves as a corporate Group with global networks in the future.
Challenging unachievable areas and attaining overwhelming growth
Our Group has set the target values to be attained by the end of fiscal 2015, which are a total of 4,500 domestic and overseas stores, consolidated sales of 250 billion yen, consolidated operating profit of 20 billion yen, consolidated operating profit ratio of 8%, and an overseas consolidated operating profit ratio of 20% or more.
These targets are extremely high, and may appear unachievable. However, by setting extremely high targets and keep them strongly in mind, we will be motivated to attain them by overcoming even the most difficult obstacles through trial and error. We believe this will provide the driving force for making something that seems impossible possible.
There is certainly something to look forward to with the Yoshinoya Holdings Group, which is about to undergo major changes.
Shuji Abe
President
YOSHINOYA HOLDINGS CO., LTD.
