Doutor engages in three general categories of business.
Retail business
Accumulating expertise for coffee shop operations, acquiring good shop locations, and training staff.
Wholesale operations
Supporting the sale of products to franchise shops, including loyalty income and franchise fees, and the general food service industry, such as restaurants and hotels, food manufacturers, convenience store chains and mass merchandising stores; marketing kitchen equipment; and manufacturing and retailing original cakes through a subsidiary.
Other business
Operating the shop planning of franchises.
Business overview by segment in the fiscal year under review is as follows.
Retail business
In the fiscal year under review, we opened a total of 41 directly operated shops (19 Doutor Coffee Shops, 19 Excelsior Caffés and 3 other shops). We closed 8 shops, mostly unprofitable ones, brought 5 franchise shops under direct operation and turned 3 directly operated shops into franchise shops. As for our existing shops, we steadily promoted sales of themed menus and shop renovations and were able to generate sales in line with our initial projections. As a result, net sales increased 6.4% from the previous fiscal year to ¥27,788 million, although operating income fell 19.6% to ¥1,748 million due to the surging price of coffee beans.
Year-on-Year Sales of Directly Operated Shops |
Unit: % | |||||||
| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | |
| Existing Shops | ||||||||
| Doutor Group Shops | 100.0 | 99.3 | 99.2 | 96.9 | 98.9 | 98.1 | 99.3 | 100.3 |
| Doutor Coffee Shops | 100.3 | 99.2 | 97.3 | 97.4 | 98.3 | 97.9 | 97.9 | 98.6 |
| All Shops (Includes New Shops) | 108.1 | 116.7 | 121.9 | 117.6 | 107.3 | 100.8 | 104.5 | 106.7 |
| Food Service Industory (Existing Shops) | 96.4 | 96.5 | 96.7 | 94.4 | 95.2 | 97.6 | 99.4 | 100.8 |
Note: Data from the Japan Foodservice Association and Doutor Coffee.
*Sales of Doutor Coffee Shops starting fiscal 2005 combine directly operated shops and franchise shops.
(Fiscal years ended March 31)
Wholesale operations
We opened a total of 48 franchise shops (42 Doutor Coffee Shops and 6 Excelsior Caffés). In wholesale operations excluding wholesale for franchise shops, large-sized Café Latté chilled cup products for convenience store chains were favorably received. As a result, combined net sales for wholesale operations rose 2.3% from the previous fiscal year to ¥41,232 million, although operating income declined 5.9% to ¥5,159 million due to the rise in costs as in the retail business.
Other business
While we aggressively promoted such efforts as shop renovations, income from franchise fees and shop planning fees declined as fewer new shops were opened compared with the previous fiscal year. As a result, net sales fell 3.0% from the previous fiscal year to ¥1,124 million. Operating income dropped 67.8% to ¥41 million.
