• • Saizeriya's listed entity was established in 1973, and the company went public in 1999.
  • For the fiscal year 2022 (September 2021 to August 2022), Saizeriya achieved revenue of 144.3 billion yen (RMB 73.7 billion) and a net profit of 5.7 billion yen (RMB 2.9 billion).
  • As of February 2023, Saizeriya's market value was 238.1 billion yen (approximately RMB 114 billion), with a price-earnings ratio of about 36 times.

  
  

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Saizeriya's strength lies not in its large scale or strong profitability but in its ability to maintain high-quality operations of chain restaurants in a highly competitive environment through its high-cost performance model.

3)Saizeriya's Pursuit of Industrialization in the Catering Industry

Although Saizeriya is a chain restaurant brand focused on cost-effectiveness, its inherent philosophy is the SPA model promoted by Uniqlo, "connecting production to terminal sales." Specifically, Saizeriya aims to establish its own directly operated store network and manage various key nodes in the entire industry chain, including dish development, ingredient production, processing, and distribution. This concept has been established since Saizeriya had only a dozen stores and has been put forward as Saizeriya's "60-year vision" – opening 1,000 directly operated stores and establishing its own production and sales system within 60 years.

Saizeriya's production and sales system are the foundation of ensuring the extreme cost-effectiveness model. Under this system, Saizeriya can effectively control the quality of ingredients and meal quality while reducing costs and expenses at various stages of the supply chain. Although Saizeriya self-assesses that its research on seeds, soil, cultivation methods on its own farms, the construction of its own factories overseas, and the overall logistics system are still in a relatively early stage, Saizeriya has always been striving to connect the industry chain from its stores to the source, achieving true industrialization of catering.

4)Direct Sourcing and Self-Built Factories

Achieving direct sourcing from the source and establishing factories at the production site to build a complete self-owned supply chain system is an important strategy for Saizeriya to achieve industrialization and reduce overall costs.

Saizeriya started importing wine from Italy when it had only dozens of stores. In 2000, it opened its own factory in Australia, purchasing beef and dairy products, and producing core products such as hamburger patties and Doria (creamy baked sweet potatoes) sauce locally.

5) Total Cost Control Philosophy: QCDES Model

Saizeriya's cost control in the supply chain is not only about controlling procurement costs but also focuses on the total cost of the entire delivery process. It emphasizes controlling the quality of raw materials in the pre-sequencing stage to minimize the increase in silent costs associated with the advancement of production processes.

Saizeriya's own factories adhere to QCDES requirements in production. Among them, compared to costs and delivery dates, Saizeriya pays more attention to quality, environmental protection, and safety.

Saizeriya's "total cost control" philosophy is specifically manifested in identifying quality issues in the pre-processing stages and dealing with them regardless of cost. Saizeriya believes that addressing quality issues at the initial stages is more effective than discovering problems in later processes, thereby reducing overall costs.

- 03 -

1）Competitor Store Research

Saizeriya attaches great importance to market research from top to bottom and considers McDonald's the most worthy company to study in the chain restaurant industry. Therefore, when developing a new store, Saizeriya's new store development team visits McDonald's stores in the same area to understand the number of customers and their flow.

Selection of Research Targets:

• Choose stores with different operating styles from Saizeriya to understand the differentiation.
• Investigate best-selling products in large convenience stores and supermarkets to understand consumer preferences.
• Preferably research chain stores larger than Saizeriya, where accumulated improvements and standardization likely showcase essential elements according to consumer perception.

• Tends to favor the outskirts of good business districts.
• Prioritizes cost in store decoration, often reusing existing hardware and even soft furnishings to reduce initial investment for new stores.

萨莉亚门店选址倾向于好商圈的边缘位置

Saizeriya's primary focus during store expansion is Return on Investment (ROI), with a target ROI of 30% for selecting new locations. To ensure a store's profitability, Saizeriya leans towards controlling the initial investment costs.

萨莉亚的门店装修成本优先，并不追求绝对的风格统一