Core Viewpoint - Sallya's unique survival strategy focuses on transforming the restaurant industry into a manufacturing-like efficiency model, emphasizing cost control and operational efficiency over traditional pricing strategies [6][12][25]. Financial Performance - In 2025, Sallya's consolidated revenue reached 256.7 billion yen, a year-on-year increase of 14.3%. Operating profit was 15.4 billion yen, up 26.7%, and net profit was 11.1 billion yen, growing by 37.4%. In China, revenue was 70.96 billion yen (approximately 3.3 billion RMB), with a growth of 6.3% [5]. Operational Efficiency - Sallya operates with a minimal staff, often only 6 employees in the kitchen, achieving a labor efficiency of 580,000 RMB per person per year, which surpasses competitors like Haidilao [8][22]. - The restaurant's design allows for a compact kitchen that occupies only 30% of the total area, facilitating a high turnover rate of approximately 5.5 times per day [8][9]. - The company employs a unique assessment system for store managers that focuses on labor efficiency rather than sales figures, promoting a culture of operational efficiency [9][22]. Cost Control - Sallya maintains a low rent-to-sales ratio of 8%-10%, significantly below the industry average, and has implemented strict waste management practices to control costs [8][14]. - The company has developed a vertical integration model, controlling its supply chain from farming to food processing, which allows for better cost management and quality control [16][25]. Market Strategy - Sallya's pricing strategy is based on consumer demand rather than cost-plus pricing, with 80% of its menu items priced below 20 RMB, maintaining an average customer spend of around 45 RMB [15][19]. - The company has a long-term vision of reaching 10,000 stores globally, with plans to open 110 new stores in 2026, primarily in overseas markets [23][27]. Challenges and Adaptations - Despite facing a decline in operating profit in major cities, Sallya continues to expand, adding 82 new stores in a year, bringing the total to 497 [6][23]. - The company is adapting to market pressures by restructuring its management and implementing a regional control strategy to enhance operational efficiency [26][27].