Yoshinoya has a net loss of 7.5 billion yen a year. Why is this happening?

On 20021April 14, Japanese fast food chain Yoshinoya released its financial results for 2020. The financial report shows that Yoshinoya's net loss in 2020 is as high as 7.5 billion yen. The main reason for Yoshinoya's loss was that its turnover dropped sharply due to the COVID-19 epidemic. It is reported that by 2020, Yoshinoya has closed 150 stores around the world. In August 2020, Yoshinoya announced the closure of 150 stores around the world, including 0/00 stores in Japan and 50 stores overseas. The news of the planned store closure is also related to the China market, which has aroused great concern from the industry and consumers. Closing the store is because the epidemic caused some stores to lose money and closed the store to stop loss. In this regard, the relevant person in charge of the franchise operator said that the above-mentioned store closing plan does not include the Yoshino store of Hexing Group, which is currently operating normally and is still open in Jingmen Store.

According to the data, Yoshinoya currently has about 3,300 stores around the world, with more than 1000 overseas stores, of which China stores account for more than 60%. In the China market, Yoshinoya brand is jointly operated by Hongkong Hexing Group Holdings Limited (Hexing Group) and Japanese Yoshinoya headquarters. Hexing Group operates Yoshinoya's stores in Beijing, Tianjin, Hebei, Northeast China and Hong Kong in franchise mode. In addition, stores in other regions are managed by a branch of Yoshinoya's Japanese headquarters.

According to Yoshinoya's latest announcement, in March, April and May, Yoshinoya's business hours were reduced by 94%, 78.7% and 77.4% respectively. During the outbreak, Yoshinoya had 65,438+0,700 stores worldwide affected. Accordingly, Japan Yoshino Holdings Co., Ltd. lost 4.087 billion yen in the first quarter of 2020, and is expected to lose 9 billion yen for the whole year. Not only is it higher than the previous two losses, but it is only one year away from the last loss, which can be said to be a great loss. Japan's fiscal year is from March 28th, 2006 to March 28th, 2006. For example, 2065,438+08 refers to the financial data of March 65,438+0,2065,438+28, 2009.

At present, Yoshinoya faces? Price increase may lead to market loss, and price reduction may lead to unprofitable? Finally, we can only adopt a more passive liquidation strategy to reduce the scale and reduce losses. The 50 stores to be closed in China account for about a quarter of the direct stores and joint ventures opened by Yoshinoya in Japan. Among the 65,438+000 stores to be closed in Japan, there are only 40 Yoshinoya brand stores, accounting for about one thirtieth of Yoshinoya's stores in Japan. Generally speaking, after the retreat, Yoshinoya will focus more on the country.