Human Capital Management

Basic Policy

Human capital management is a method of management that uses a company's human capital—including human resources, knowledge, and skills—as management resources to boost corporate value. Among the five material issues identified based on our Basic Sustainability Policy, the Group has set out to “realize diversity and inclusion to enable people to grow and thrive." For our Group, which offers everyday meals under the business philosophy of “For the People," the joy and sense of fulfillment that employees derive from their work is the origin of the service that supports our customers' delicious and fulfilling meals, and it is a value that can only be achieved by people. Respecting people's diversity and individuality and encouraging employee success and growth leads to the continuous creation of value that meets customers' changing needs, which in turn leads to the company's sustainable growth and the return of value to society.

Moreover, information disclosure related to human capital management heightens corporate transparency and leads to the establishment of a relationship of trust with stakeholders. The Group aims to boost corporate value by disclosing information on human capital to all stakeholders, including employees, customers, investors, business partners, and local communities.

Human Resources Development Policy

The Yoshinoya Group considers all employees as potential executive candidates and provides everyone with fair and equal training opportunities. We provide our staff with challenging opportunities and specialist training and actively reassign employees to support personal growth. We also invest the necessary funds and create the necessary environments for promoting growth and learning.

Policy to Improve Internal Environments

The Group promotes diversity and inclusion, encourages a good work-life balance, and pursues wellness management to ensure all employees can enjoy strong physical and mental health and work in a safe environment.

Initiatives to Maximize the Value of Human Capital

(1) Practice Diversity and Inclusion

We respect the diversity and personal characteristics of our people and strive to maximize each person's individual strengths. As part of that commitment, we seek to develop as a company that enables all employees to demonstrate their full potential and play an active role while also fostering mutual trust. We will continue to use the diversity of knowledge that different individuals bring to the table to develop a more resilient response to change, create innovative new value, and solve issues for our customers and society at large.

Our Five Guiding Principles for Encouraging Diversity and Inclusion

1.To understand and respect individuals The Yoshinoya Holdings Group is aware of, accepts, and respects differences between individuals.
Correctly understanding unconscious bias and improving communication quality and quantity enables us to understand each other's way of thinking, values, and backgrounds, and leverage the differences to achieve synergy.
2.To promote universal success The aim of the Yoshinoya Holdings Group is for everyone to play an active role.
We aim to expand each individual's potential and help them to fully demonstrate their capabilities, regardless of age, gender, race, nationality, region, educational background, beliefs, religion, disability, sexual orientation, gender identity, or health status. With this in mind, we strive to allocate personnel to the most appropriate positions in accordance with experience and ability.
3.To uphold fair and equal support practices The Yoshinoya Holdings Group respects the individual and provides fair support rooted in our understanding of diverse lifestyles.
In the interest of enabling employees to continue to be active even in the event certain circumstances and restrictions arise, we will strive to create a comfortable working environment and to evaluate performance fairly based on results and contributions.
4.To build trust The Yoshinoya Holdings Group places value on mutual trust.
Through the spirit of altruism and by valuing human connections, we build relationships of trust with individuals.
5.To emphasize independent and challenging spirit The Yoshinoya Holdings Group aims for mutual employee and organizational growth.
We provide a host of opportunities for each individual to consider their own way of living and working, and to grow as autonomous professionals. Further, as mindsets essential to growth, we value independence and a willingness to take on challenges.

Initiatives for the Practice of Diversity and Inclusion

With the aim of achieving sustainable growth, the Group is developing businesses to promote the use of our services by a broad range of customers—including women and families—and working to have more female employees involved in internal decision-making. With this in mind, we have introduced a quota system with the objective of achieving a female employee ratio of 30%, a female manager ratio of 30%, and the proportion of executive candidates (management positions) aged 35 and under of 30% or more by 2025, and we have established mandatory annual targets. We support diverse workstyles through systems such as childcare leave, shortened working hours, and care for employees returning from maternity leave—this includes maintaining their positions and exempting them from overtime and late-night work—and we are fostering a workplace environment that facilitates good work for everyone.

Moreover, our Group is also proactively employing people with disabilities and rehiring employees once they have reached retirement age. We established an Employment Promotion Committee in 2015 to manage the employment of people with disabilities—who we call “friend employees" within the Group— at all operating companies in Japan. Many of these friend employees are engaged in tasks such as cleaning at factories, and they are also active at Sankosha Laundry Center Co., Ltd., a special-purpose subsidiary responsible for cleaning restaurant employee uniforms. To promote the active participation of seniors aged 60 or over, and in accordance with the Act on Stabilization of Employment of Elderly Persons, each of our operating companies in Japan is taking steps to rehire employees once they have reached retirement age.

Yoshinoya Holdings, Yoshinoya, and Hanamaru set salaries based on a job grade system, regardless of gender, nationality, or age. The difference in compensation between men and women in the same job grade results from differences in the number of male and female employees in the relevant grade and average years of service. We anticipate that promoting the active participation of women and the introduction of the quota system will correct this imbalance.

Note: When an employee's job grade is upgraded, they will be paid a salary appropriate to the position, regardless of gender, nationality, or age.

Quantitative Information on the Practice of Diversity and Inclusion

Indicators Actual results for FY2022
Percentage of childcare leave taken*2 Male 33.3%
Female 100.0%
Number of employees using shortened working hour system upon returning to work after maternity leave*2 2
Percentage of employees with disabilities (friend employees)*3 5.06%
*Statutory employment rate: 2.30%
Number of employees aged 65 years or over covered by social insurance*2 292
Average wage gap between men and women*2
(ratio of women's wages to men's wages, with men's wages set at 100)
Average years of service*2
Department heads 85.1%
Male 25.0 years Female 21.9 years
Management positions (area managers, etc.) 94.3%
Male 20.2 years Female 15.9 years
Non-management positions (store managers, etc.) 92.9%
Male 12.9 years Female 8.2 years

(2) Promote a Good Work-Life Balance

We have introduced and implemented employee leave systems to enrich our employees' private lives as well as communication measures to improve employee interaction and relationships. We also pursue wellness management after having positioned the mental and physical health of our employees as one of our key management pillars.

Revitalizing the Organizational Culture

Yoshinoya Holdings and Yoshinoya assess the organizational culture once every two years, and Hanamaru conducts assessments on a regular basis. Assessing the organizational culture is akin to a health checkup for a company. Visualizing the health of things such as employee motivation, internal communication, and openness reveals issues that must be addressed if the organizational culture is to be revitalized. In FY2022, we formed the Corporate Culture Enhancement Committee to further invigorate internal communication, and launched activities.

Ease of Work

Yoshinoya has complied with Article 39 of Japan's Labor Standards Act since the beginning of the chain's expansion, and has introduced an annual paid leave system for part-time employees. We have introduced a scholarship program that provides loans to subsidize the admission fees and tuition for high school students planning to enter university and who work part-time. Such people who join the Group after graduation and stay for four years will be fully exempt from repayment of the scholarship. If the person joins another restaurant company, they will be exempt from half the full amount. Moreover, employees are given special leave after 10, 20, 30, and 40 years of service as a long-term service award.

Internal Communication

Yoshinoya and Hanamaru hold store managers' meetings (employee assemblies) twice a year, which is attended by employees at the store manager level and above. Even after the spread of COVID-19 in 2020, the meetings were conducted online, affording employees the opportunity to hear directly from upper management.

Yoshinoya regularly publishes roundtable discussions in its internal newsletter, with the president and several store managers participating. It uses this as a forum for direct exchange with the president, changing themes to discuss topics including business philosophy, sales policy, motivation at work, and issues with store operations. We hold work experience programs for store managers with children up to elementary school age as a summer vacation project. Our aim with having the children work at restaurants with their fathers and mothers is to promote an understanding of work and communication among family members.

Wellness Management

We conduct regular health checkups for employees—as well as part-time workers who satisfy certain conditions—as part of managing their physical and mental health. Going forward, we will implement dietary and lifestyle guidance using smartphone apps, in the interest of improving health literacy.

Quantitative Information on promoting a Good Work-Life Balance

Indicators Actual results for FY2022
Percentage of paid leave taken*2 Employees 59.3%
Part-time workers 76.5%
Number of scholarship recipients (total)*4 23
Regular health checkup attendance rate (including part-time workers)*2 89.1%
Ratio of employees undergoing stress checks*5 58.5%
Percentage of employees recording high-stress levels in stress checks*5 20.2%
Employee turnover rate (within three years of joining the company)*2 43.6%

(3) Human Resource Training and Career Building

We seek to build strong human resources by actively investing in talent development and career building that focuses on helping individual employees demonstrate their full capabilities and promoting long-term growth.

Human Resources Development

We offer educational training and tools tailored to the stage of learning of each individual. In addition to supporting career path realization, we have also introduced a framework for supporting self-study to aid employees in acquiring specialized knowledge and skills. Operating companies and all departments nominate candidates for executive positions and intentionally transfer them to new positions. We also publicly recruit staff for departments at the head office from among all employees—including store managers—and provide opportunities for growth by assigning selected personnel to system and product development roles. In addition, we have created a database of human resources information to aid us in properly allocating personnel, and we are leveraging this in revitalizing human resource exchange within the Group and developing the next generation of leaders.

Training overview (example)

Name of training Subject Training objective
Compliance training All Group officers/employees Understanding and dissemination of compliance
In-house interview program Officers/department heads Acquiring and practicing coaching skills
Philosophy dissemination workshop Head office staff inexperienced in retail Business philosophy understanding and team building
Business skill acquisition training Area managers/upper-level store managers Acquisition of management skills
Management school Management position candidates Management strategy and presentation
Overseas site inspection and training Management school graduates Research into markets overseas and future domestic and overseas expansion proposals
Interactive real-team training Area managers/store managers Organizational strength development
Safety management, quality, and hygiene training Factory employees Knowledge and skill enhancement

Dispatch to and exchange with external organizations (example)

Name of program Subject Program objective
Business schools Officers/department heads Acquisition of specialized knowledge at business schools, law schools, etc.
Cross-industry exchange Management position candidates Working toward mutual improvement through friendly competition with external personnel and building a network
Industry-academia collaboration program Managerial selection Boosting interpersonal skills such as leadership and nurturing through collaboration with students

Diligent Study of Cooking and Customer Service Skills

Yoshinoya restaurants have developed online video training tools. Not only can the cooking and work processes be checked repeatedly, but the videos also help foreign part-time employees to understand operations. We hold contests for employees working at restaurants to improve their operational skills. Yoshinoya holds the Beef Bowl Preparation Skills Grand Championship, where employees put their beef bowl preparation and serving skills to the test, the Team Service Contest, where employees match their customer service skills against one another, and the Kitchen Master Championship, where employees compete in practical operations that respond to menu diversification. Hanamaru also conducts an annual Operation Contest, where staff can display their overall skills in food presentation and customer service.

Global Human Resource Education and Training

For the Yoshinoya Holdings Group, which operates its food service business on a global scale, securing talented foreign nationals is vital in expanding the provision of food that caters to a broad range of values. We do not view foreign employees as short-term labor. Just as we do with Japanese employees, we want them to acquire the skills needed to become management candidates through store manager positions. To this end, we are promoting education and training in Japan. We are regularly sending store managers in Japan abroad on language study programs in the interest of building a pool of global talent.

Identifying and Training Next Generation Management Teams

In FY2021, we established a Human Resources Council comprising Yoshinoya Holdings executive officers and above, and are working to identify and cultivate the next generation of management by nominating and intentionally placing personnel who will be candidates for executive positions to new positions and through the active promotion of younger employees. For candidates selected from among managers as the next generation of management, we will operate programs such as the in-house interview program and interactive real-team training within the company. In parallel with these, we provide opportunities for employees to broaden their horizons and gain the knowledge and connections necessary for executives, such as participation in cross-industry exchange training and industry-academia collaboration programs, and study at business schools.

Career Development Support

We are actively promoting the transition of part-time employees at our restaurants to full-time status. We hold monthly employment conversion tests for part-time employees who are willing to work full time, and always provide career advancement opportunities. Following conversion to full-time status, employees will be able to acquire the skills a businessperson needs through store manager duties and standardized training, with the objective of becoming candidates for executive positions.

Quantitative Information on Human Resources Development and Career Development Support

Indicators Actual results for FY2022
Number of employees (including part-time workers)*1 Total 15,429
Male 7,637 Female 7,792
Number of foreign employees*2 Employees 53
Part-time workers 1,666
Number of nationalities*2 31 countries worldwide
Percentage of employees with part-time work experience*2 79.9%
Percentage of employees in important positions (officers and department heads) with part-time work experience*2 45.6%
Percentage of managers aged 35 and under*2 4.0%
Number of hours of education or training per employee*2 28.7 hours/year
Educational investment per employee*2 51,697 yen/year
Number of training sessions conducted*2 (Training for officers and department heads) 20 sessions
(Selective training and external training) 30 sessions
(Training for store managers) 144 sessions

1 Consolidated results for the Group (including overseas businesses)

2 Results across three companies: YOSHINOYA HOLDINGS CO., LTD., YOSHINOYA CO., LTD., and Hanamaru, Inc.

3 Results across four companies: YOSHINOYA HOLDINGS CO., LTD., YOSHINOYA CO., LTD., Hanamaru, Inc., and Sankosha Laundry Center Co., Ltd.

4 Results for Yoshinoya Co., Ltd.

5 Results across two companies: YOSHINOYA HOLDINGS CO., LTD. and YOSHINOYA CO., LTD.