create restaurants holdings inc.
Climate Impact & Sustainability Data (2023-02, FY2/22)
Reporting Period: 2023-02
Environmental Metrics
ESG Focus Areas
- Food safety and security
- Coexistence and co-prosperity with producing regions
- Contribution to a decarbonized society
- Food loss reduction
- Promoting the active participation of diverse human resources
Environmental Achievements
- Aiming for a 50% reduction in CO2 emissions (Scope 1+2) by 2030 compared to 2013.
Social Achievements
- Established a new "Human Resources Project Team" in March 2023.
- Established "Basic Policy on Human Resources", focusing on creating a workplace where employees can work enthusiastically, promoting the active participation of diverse human resources, respecting each employee, and supporting employee growth through education and training.
- Increased employee salaries by 4.1%.
Governance Achievements
- Developed a "Sustainability Basic Policy" aiming for long-term corporate value improvement by contributing to the realization of a sustainable society.
- Developed a "Sustainability Procurement Policy" ensuring compliance with laws and regulations, fair trading activities, and responsible procurement that considers human rights and the environment in all purchasing transactions and procurement activities.
Climate Goals & Targets
Long-term Goals:
- Achieve sales of 154 billion yen, operating profit of 10.8 billion yen, and adjusted EBITDA of 26.6 billion yen by fiscal year 2026.
- Increase the number of new stores by 30 per year (2025-2026).
Medium-term Goals:
- Achieve a 15% female management ratio, 1% foreign national management ratio, 7% foreign employee ratio, and 5% diverse work style utilization rate by 2025.
- Increase investment in DX and CRM implementation, active renovations, and easing investment standards for new store openings.
Short-term Goals:
- Improve the quality of existing stores by clarifying the concept of each store, streamlining menu items, and improving service and food quality.
Environmental Challenges
- Severe profit environment due to the impact of the COVID-19 pandemic (waves 6-8), rising raw material prices, and soaring energy prices.
- Human resource shortages.
Mitigation Strategies
- Cost control measures, including centralized purchasing, price adjustments, shift management, reduced recruitment costs, and DX initiatives (mobile ordering, self-service registers, delivery robots).
- Portfolio review and M&A activities (e.g., acquisition of Saint-Germain).
- Group synergy (centralized purchasing, etc.) and DX promotion.
Supply Chain Management
Responsible Procurement
- Developed a "Sustainability Procurement Policy".
Climate-Related Risks & Opportunities
Reporting Period: FY2/22
Environmental Metrics
ESG Focus Areas
- food safety and security
- coexistence with production regions
- contributing to a decarbonized society
- reducing food loss
- promoting the participation of diverse human resources
Climate Goals & Targets
Medium-term Goals:
- revenue of ¥140,000mn, operating profit of ¥10,900mn, and adjusted EBITDA of ¥28,400mn by FY2/25
- open 30 new outlets each year
- gradually recover real same-store sales to 90% of FY2/20 levels by FY2/25
Short-term Goals:
- recover real same-store sales to 78.5% of pre-pandemic levels in FY2/23
Environmental Challenges
- COVID-19 pandemic impact (shortened business hours, suspensions, restrictions on alcohol sales)
- lifestyle changes
- concerns about new COVID-19 variants
- personnel shortages in the restaurant industry
Mitigation Strategies
- rigorous cost controls
- business portfolio revision
- public offerings to enhance financial foundation
- asset streamlining (closing unprofitable outlets)
- digital transformation (DX) to raise productivity
- Group Federation Management to promote cooperation and synergies
- adapting business formats to meal and takeout demand
- entering the mobility business
- collaborations between Group companies