Yuji Furuya, CEO of Chateraise, a leading confectionery company, has acknowledged compliance issues amid the firm’s rapid growth. In an interview with the Sankei Shimbun, Furuya plans to significantly reduce new store openings as part of a “strategy to halt growth” to address these problems. He expressed regret over the recent scandals, including unpaid leave, illegal overtime, and various violations, and apologized to stakeholders.
Chateraise saw its revenue triple from 43 billion yen in 2014 to 131.3 billion yen in 2023, with its store count doubling. The company maintained operations during the COVID-19 pandemic, especially in suburban locations, which contributed to its growth.
Furuya admitted that the company’s infrastructure couldn’t keep pace with its expansion, leading to inadequate compliance measures. To become a responsible company, he sees slowing down growth as critical. He plans to limit new store openings to previously planned locations, freezing any new ones.
The company has created a Labor Safety Promotion Department to work alongside its Quality Assurance Department to strengthen safety, quality, and compliance checks. They will conduct compliance training and twice-yearly inspections with lawyers’ assistance, seeking consultants’ evaluations for reforms.
Furuya plans to focus on fundamental improvements for at least two years, although no fixed timeline is set. While this might lead to potential supply shortages, he stressed prioritizing strengthening the company’s base over growth.
by MagazineKey4532