The restaurant sector in Japan has reported divergent results in their latest earnings as a drop in the number of people dining out amid the coronavirus pandemic hit izakaya pub operators hard, while takeout demand boosted fast-food chains.
Pub operator Watami Co. on Friday reported a loss of ¥11.59 billion ($105 million) in the business year ended March, as the government requested restaurants to shorten hours for serving alcohol and close early as part of anti-virus measures during the year.
“If the current situation continues, we expect red ink of ¥5 billion to ¥6 billion for fiscal 2021,” Watami Chairman Miki Watanabe told an online briefing, adding the company has requested a capital injection of ¥12 billion from the state-run Development Bank of Japan.
Colowide Co., which has restaurant and pub units, including Japanese-style set-menu chain operator Ootoya Holdings Co., posted a record loss of ¥9.73 billion in fiscal 2020. It has decided to close 48 of its restaurants as part of its business review.
Among fast-food chain operators cashing in on the food delivery and takeout boom, KFC Holdings Japan Ltd. saw its net profit in fiscal 2020 jump 82.9% to a record ¥2.81 billion.
McDonald’s Holdings Company (Japan) posted record sales of ¥155.78 billion in the January-March period, up 9.8% from a year earlier.
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