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Customer-Oriented Store Operation Strategy

Growth Roadmap (First Phase to Third Phase)


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Medium to Long-term Growth Story

Steadily Implementing Profit Structure Reforms
at Each Store

Executive Officer of Skylark Holdings Co., Ltd.
and President of Skylark Restaurants Co., Ltd.
Hisashi Nakashima

Having experienced the COVID-19 pandemic, the value of eating out is currently being reexamined by many people. In addition to enhancing customer experience value by improving QSC* at each of our approximately 3,000 stores nationwide, we are focusing on reforms and training for the managers of each store to maximize the profitability of their own stores. In FY2022, we selected model stores in each business category and achieved significant results through the store profit improvement project. In FY2023, we plan to create a manual based on those results to improve profitability at all stores.
The strength of the Skylark Group is its capability of our human resources which consist of approximately 6,000 employees and about 90,000 part-time workers who are familiar with and able to provide the level of service expected at table service restaurants. Through investment in human resources, such as development of services and training tools that also utilize DX, and the expansion of online training systems for all employees, we aim to improve customer satisfaction by providing added value through our human resources. We are building a new way of providing restaurant services to prepare for future recruitment difficulties due to the low birthrate and aging population.

* QSC: An abbreviation for Q (Quality), S (Service), and C (cleanliness), which are the three pillars of the restaurant business.

Results

Improved Store Operating Profit by 11% through the Profit Improvement Project

In the fall of 2022, we launched the Profit Improvement Project and conducted experiments at 15 model stores in each business category. Store operating profit improved in December 2022 by 11% compared to July 2022 as a result of experimentation from three perspectives: Sales improvement, cost reductions, and productivity improvement. We aim to create a strong organization where managers of each store can learn, think about, and implement methods to increase sales at their own stores.

Internal Communication Emphasizing Dialogue with Employees

“Skylark Restaurants Co., Ltd. PresidentHisashi Nakashima Visits Stores” VideoMessage

We believe that improving store capabilities is a matter of checking actual conditions at store locations and then taking action. Going to stores, listening to what employees are having trouble with, and taking action to make improvements is what directly leads to operational improvements. Also, hints for increasing customer satisfaction can be obtained from store employees. Since 2022, videos have been shown of the President of Skylark Restaurants Co., Ltd. visiting restaurants that are producing results through the Profit Improvement Project and interviewing managers and part-time workers about the secrets of their efforts. There has been a great response from within the company, and we are actively gathering ideas for increasing sales and reducing costs. We will continue to distribute these videos each month to stimulate internal communication.

Return to Late-Night Business Hours in Response to Social Needs

In the post-COVID-19 era, while the demand for eating outside late at night is increasing, the number of restaurants that are open late at night is decreasing. By opening stores nationwide in response to such social needs, we would like to operate stores that are needed by the local people in every era. From April 2023, approximately 2,000 stores such as Gusto, Bamiyan, and Jonathan’s will remain open until midnight, and approximately 250 stores are scheduled to close at 2:00 am or 5:00 am. Although it is difficult to recruit employees under current conditions, we are steadily promoting recruitment and retention support by improving the working environment through DX and by utilizing multilingual manuals and digital translation tools in response to the increasing number of foreigners being hired.

Strengthening Our Chain Store Foundation

The Skylark Group has developed a consistent training system as a food service chain restaurant operator with approximately 3,000 stores throughout Japan. The Group is working to develop a group of food service professionals capable of working actively in any region or business category around the country by instilling the basics of health and safety and hospitality towards customers, fostering teamwork with consideration for colleagues, and standardizing initial training, store support IT systems and evaluation systems across all business categories and stores.
Skylark swiftly develops various training manuals, including food preparation and customer service manuals, as videos and distributes them as educational tools for each restaurant or store, enabling all employees to learn easily using the same standards. In addition, with the aim of communicating the company’s management policies to employees in an easy-to-understand manner, we provide timely management information through Monthly Management News video broadcasts featuring senior management.

 Online Training for All Employees (employees and part-time workers)

In FY2022, we held the cross-brand online training for the first time. As of the end of March 2023, 18,000 employees have participated. This is an opportunity for employees to learn from each other not only about their own brand but also the know-how that leads to improvement of service and operational capabilities from colleagues of other brands engaged in table service restaurants, contributing to employee satisfaction.