Our management policy and pursuit of profits
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Although the title is a bit serious, I would like to talk about our attitude towards making money. I think that many stores in many industries say that lowering prices and reducing profits is a way of serving customers. Ignoring profits means not incurring costs. We agree with not incurring unnecessary costs, but we believe that we should not replace necessary costs with risks.
In addition to labor costs, costs are diverse, including rental fees for property, costs for coffee development, costs for equipment, costs for EC operation, etc. In order to deliver safe and secure products to customers, it is necessary to use equipment and facilities that have obtained various certifications, which also costs money.
Our store develops products at our development center at the foot of the Yatsugatake Mountains, and some of our products are also manufactured here. However, if we need to manufacture in larger volumes, we will not hesitate to outsource manufacturing. The reason is simple: large manufacturing facilities require a huge investment, which can become a burden on management. Of course, it would be best to make a solid income and be able to invest, but we will make this decision carefully and intend to continue with outsourcing until then.
By outsourcing manufacturing to a specialist company, hygiene risks such as foreign matter contamination can be reduced, and the effort required for distribution can also be reduced.
As a rule, profits earned, excluding personnel expenses, are invested in the business, such as setting up a brick-and-mortar store and installing the latest equipment, in order to deliver delicious coffee to everyone more quickly. We would never use the money to buy a luxury car for the company or build a vacation home.
We will pursue profits in a healthy manner, return the profits we earn to our community, our country, and everyone, and we will do our utmost to contribute to that community, our country, and everyone.
I will take another opportunity to explain what outsourcing manufacturing is like.