THE ASAHI SHIMBUN
June 13, 2021 at 07:00 JST
Big Echo, the largest karaoke chain in Japan, has fallen into the red for the first time since it got started in 1976, and operator Daiichikosho Co. says the novel coronavirus is to blame.
The downturn is forcing Daiichikosho to seek out new business opportunities.
Financial data released by the company May 13 shows that sales for the business year ending in March came to 93.3 billion yen ($858 million), down 36.2 percent from the previous year.
This resulted in a net loss of 18.7 billion yen, it said.
The sluggish results derive primarily from the fact that many outlets were forced to suspend operations or shorten their opening hours under the state of emergency to deal with the health crisis.
Last fiscal year, 43 karaoke outlets and 25 restaurants operated by Daiichikosho had to close.
Though some new outlets opened, sales for the company’s karaoke and restaurant sector plummeted by 60 percent year on year.
In addition, the karaoke service intended for eateries was unable to maintain brisk sales as so many bars and snack-style pubs suspended operations.
Daiichikosho forecast gradual business recovery and increased sales for the year ending March 2022, but announced no firm net profit estimates.
The company said it expected karaoke demand to recover to pre-pandemic levels from a midterm perspective, but acknowledged that uncertainty dogs future prospects.
Because of that, Daiichikosho has been pouring resources into developing food delivery services and other new businesses since last autumn.
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