Promoting the use of DX and AI

Currently, amidst the rapid progress of digitalization, also known as the Fourth Industrial Revolution, the use of artificial intelligence (AI), IoT, RPA, and cloud computing is accelerating. In stores, technological innovations such as self-ordering and self-cash withdrawal, as well as the use of IT-based data, are leading to labor savings not only in routine tasks but also in non-routine tasks. Our group will also actively promote efficiency and automation of operations by undertaking DX in each process, including stores, factories, logistics, and headquarters.

(From the Securities Report for the fiscal year ending March 2026)

We are currently building a system to collect information such as sales and inventory. In preparation for future expansion of our sales bases, we will promote digital transformation (DX) to further streamline information collection and integration, thereby improving customer convenience and enabling faster business decisions.

We actively utilize cutting-edge technologies such as AI, IoT, RPA, and cloud computing, while also striving to improve and expand our system development environment.
• To make the customer experience more comfortable, we will promote the standardization and simplification of equipment and systems that serve as points of contact with customers, such as cash registers, ticket vending machines, self-order terminals, and mobile ordering UIs.
• By managing various data such as store sales, sales performance, and employee work status on a cloud system and conducting continuous analysis, we create a foundation for store operations and improvements that meet the needs of customers and employees.
• We are committed to developing, implementing, and deploying cutting-edge technologies such as AI, IoT, RPA, and cloud computing as tools to achieve automation, labor savings, and productivity improvements in all aspects of our operations, including manufacturing, logistics, retail stores, and headquarters.

Zensho Holdings is utilizing digital technologies such as AI, cloud computing, and IoT in each process from manufacturing and logistics to stores and headquarters to promote operational efficiency, automation, and the sophistication of management decisions. By collecting and integrating data such as sales, inventory, labor costs, and customer information, we are working to improve customer convenience, productivity, and corporate value.

1. Digitalization of customer touchpoints
We are promoting improved customer convenience and increased efficiency in store operations by introducing POS systems, self-ordering terminals, ticket vending machines, and self-checkout registers.

2. Cashless and multi-channel support
In addition to cashless payment methods such as credit cards and electronic money, we offer a variety of purchasing channels including mobile ordering, delivery, and drive-thru, thereby improving customer convenience and expanding sales opportunities.

3. Advanced supply chain
By utilizing a group-wide common system, we centrally manage procurement information and strengthen our domestic and international procurement network, promoting the stable supply of safe and secure food ingredients and optimizing procurement costs.

4. Enhancing business decision-making through data utilization
By collecting and integrating data such as sales, inventory, and labor costs, we are able to understand demand fluctuations, optimize inventory placement, and improve sales strategies, thereby promoting swift and accurate management decisions.

5. Business transformation through AI and digital technologies
We utilize cutting-edge technologies such as AI, IoT, RPA, and cloud computing to promote operational efficiency and automation in manufacturing, logistics, stores, and headquarters, while also working to improve productivity and create new value.
By utilizing data such as sales, inventory, and labor costs, we are driving sustainable business growth by improving customer convenience, increasing productivity, and enabling quick business decisions.

We position DX (Digital Transformation) as a crucial management strategy for achieving "improved customer convenience," "flexible and rapid response to environmental changes," and "increased productivity in manufacturing, logistics, stores, and headquarters." We continuously evaluate the results of our DX initiatives based on management indicators published on our website and in our securities reports, and make improvements accordingly.

1. Improving customer convenience
We are promoting the digitalization of customer touchpoints such as mobile ordering, self-ordering, cashless payments, and delivery. The results of these efforts are evaluated using the following metrics.
Existing store sales
• Number of customers at existing stores
・Average customer spending at existing stores

2. Flexible and rapid response to environmental changes
We collect and integrate data on sales, inventory, and labor costs to respond to demand fluctuations and facilitate rapid business decision-making. These results are evaluated using the following indicators:
Total sales
Operating profit

3. Improving productivity in manufacturing, logistics, stores, and headquarters.
We are promoting business efficiency and automation by utilizing AI, IoT, RPA, cloud computing, and other technologies. These results are evaluated using the following indicators.
Number of stores
Operating profit

At Zensho Holdings, the “Group IT Division” and the “Technology Management Division” are responsible for recruiting and training DX talent with the aim of improving company-wide DX literacy and efficiently implementing operational DX.

Through company-wide training and support designed to leverage generative AI, we are promoting the development of Agents at the individual, departmental, and company-wide levels to enhance productivity across the entire Group. The Group IT Division plays a central role in supporting these initiatives.

In addition to enhancing customer convenience through the implementation of smart stores, we are actively recruiting and developing digital transformation (DX) talent to boost the productivity of store staff and managers and strengthen their management capabilities.

Furthermore, to leverage data and digital technologies to enhance our operations, services, and business models, and to improve quality and reduce food waste through the use of AI image recognition and other technologies, the Technology Headquarters is working to build out our technological capabilities by recruiting and developing DX talent.

A flexible approach to change is ingrained in our corporate DNA, and we have been working on digital transformation (DX) from an early stage.