"Ikinari Steak" Restaurant Operator to Sell Part of Biz

Economy

Tokyo, June 19 (Jiji Press)--Japan's Pepper Food Service Co. <3053>, which operates "Ikinari Steak" steakhouses and other restaurant chains, has said that it is considering selling part of its businesses.

The announcement, made on Thursday, reflects the company's deteriorating earnings following its policy of aggressively opening outlets and due to impacts from the novel coronavirus outbreak.

Earlier this month, Pepper Food spun off its division for the operation of the Pepper Lunch steakhouse chain.

Apparently under consideration is a plan to sell the division to S Foods Inc. <2292>, a major meat wholesaler and business partner of Pepper Food, or other companies.

In the year to December 2019, Pepper Food incurred a group net loss of 2.7 billion yen. Hit hard by the coronavirus crisis, same-store sales at the company's main business divisions in May fell to around 20-40 pct of the year-before levels.

[Copyright The Jiji Press, Ltd.]

Jiji Press