Hikari Food Service
Basic Information
- Stock Code
- 138A
- Industry
- Retail Industry
- Category Detail
- Restaurants
- Prefecture
- Aichi Prefecture
- Establishment Year
- December 2009
- Listing Year
- February 2024
- Official Website
- https://hikari-food-service.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Cocolive , D&M Company , INGS , Yakiniku Sakai Holdings , DD Group , Kaifan , Chimney , Eternal Hospitality Group , SFP Holdings , Yoshix Holdings , Kushikatsu Tanaka Holdings , Watami , Daicho
Overview
Hikari Food Service is an izakaya chain founded in 2009 and based in Nagoya, concentrating on small standing-bar style stores near stations, and growing in the local dining industry.
Current Situation
Hikari Food Service achieved listing on the Tokyo Stock Exchange in 2024, expanding performance as a Nagoya-based standing-bar chain. Main stores are concentrated near stations, featuring small stores suited for short-time use. Estimated sales for 2023 are about ¥5 billion, achieving highly profitable store operations. Competitors include Watami and SFP Holdings, differentiating through local focus and low-cost operations. Focusing on digital marketing and customer loyalty enhancement to increase regular patrons. Plans further revenue growth through new store expansion and menu diversification. Introducing energy-saving measures for environmental consideration and promoting sustainable management. Strengthening internal systems and talent development, aiming to establish long-term growth foundation. Emphasizing fresh ingredient procurement and reflecting customer needs per store to enhance market competitiveness.
Trivia
Interesting Facts
- Concentrated openings near Nagoya Station, establishing standing-bar style
- Grown while upholding local focus since founding
- Store designs reflect local culture
- Supported by short-time users through small store expansion
- Engaging in local sake development under own brand
- Strength in talent development with active qualification support
- Digital ordering system among early industry adopters
- Local ingredient use respects Tokai region's food culture
- Listed in February 2024, one of emerging market注目 stocks
- Offers franchise support for small izakaya operators
- Supports dining business research group in collaboration with local universities
- Catering business at dining events growing
- Awarded for workplace environment improvements
- Attracting attention for sustainable dining business stance
- Also handles talent dispatch services to peer companies
Hidden Connections
- Jointly developing original local sake with Aichi Prefecture breweries
- Deep relationships with local agricultural and fishing cooperatives for regional ingredient procurement
- Digital ordering system co-developed with domestic IT company
- Involved in fundraising support for local small dining establishments post-listing
- Partner in local government dining industry revitalization projects
- Established contract farms for land utilization by retired farmers
- Contributes to expanding sales channels for local products through university collaborations
- Provides dining work experience programs in partnership with local high schools
Future Outlook
Growth Drivers
- Expanding demand for station-front compact stores
- Brand strengthening through establishment in Tokai region
- Efficient operations and customer expansion via digitalization
- Accelerated openings through franchise business
- Advancing local ingredient use and local production trends
- Gaining customer support with eco-friendly stores
- Service quality improvement through employee training and retention
- Customer base expansion through diverse menu rollout
- Equipment investment and new formats with IPO funds
- Securing support through strengthened local government ties
- Service diversification including catering business
- Advanced food hygiene and safety management
Strategic Goals
- Capture 20% market share in Tokai area
- Surpass 100 stores and expand nationwide
- Achieve over 70% digital order ratio
- 100% implementation of sustainable store conversion
- Build and certify local collaboration brand
- 100% achievement of sustainable ingredient procurement
- Maintain over 90% employee satisfaction
- Secure 30% of total sales from new format stores
- Over 70 franchise stores
- Improve annual regional contribution activity evaluation
Business Segments
Restaurant Management Support
- Overview
- Provides store operation and talent development support services for izakaya and restaurant chains.
- Competitiveness
- Local-focused on-site know-how and network
- Customers
-
- Izakaya operators
- Chain restaurants
- Restaurant owners
- Franchise owners
- Hotel dining departments
- Products
-
- Store operation know-how provision
- Talent development training
- Menu development support
- IT system implementation support
- Ingredient procurement agency
Ingredient Wholesale Business
- Overview
- Wholesales select ingredients to restaurants and builds stable supply system.
- Competitiveness
- Procurement routes centered on local ingredients
- Customers
-
- Izakaya
- Restaurant chains
- Company cafeterias and school meal providers
- Event catering
- Food processors
- Products
-
- Fresh vegetables and seafood
- Seasonings and processed foods
- Frozen foods
- Bulk meat
- Beverages
Franchise Business
- Overview
- Strengthens izakaya brand franchising and startup support.
- Competitiveness
- Know-how transfer from success cases
- Customers
-
- Individual operators
- Small and medium enterprises
- Restaurant entrepreneurs
- Companies seeking local openings
- Products
-
- Brand license granting
- Store design and construction support
- Management consulting
- Advertising and promotion support
Events and Catering
- Overview
- Expands food and drink provision and services for various events.
- Competitiveness
- Rapid response leveraging local network
- Customers
-
- Corporate events
- Local festivals and municipalities
- Private parties
- Trade shows and seminars
- Sports events
- Products
-
- Catering services
- Mobile sales
- Party menus
- Drink services
Competitive Advantage
Strengths
- Local-focused store expansion
- Low-cost operations with small standing bars
- Customer attraction from station-front locations
- Diverse dining menus
- Rapid product development capability
- Strong franchise foundation
- Abundant local network
- Enhanced digital marketing
- High customer loyalty
- Eco-friendly store design
- Experienced management team
- Utilization of local ingredients
- Effective staff training
- Improved brand recognition
- High customer repeat rate
Competitive Advantages
- High customer attraction from station-front small store concentration strategy
- Secures profit margins with lower costs than competitors
- Product differentiation through strong ties with local ingredients
- Efficient customer management using digital technology
- Rapid and diverse new menu development and campaigns
- Accelerates business expansion with robust franchise system
- Stable operations closely attuned to local dining demand
- Maintains service quality by focusing on staff training
- Enhances brand image by emphasizing environmental considerations
- Deep understanding and adaptability to Tokai region's dining market
- Unlike dispersed competitors in the area, scalable through concentrated openings
- Growth foundation strengthening possible with IPO fundraising
- Marketing power utilizing abundant existing customer data
- Industry-leading talent recruitment and training
- Differentiation through unique store designs
Threats
- Dining industry demand fluctuations due to economic conditions
- Risk of renewed infectious disease outbreaks and operating restrictions
- Stricter food hygiene and labor regulations
- Intensified competition and price wars from new competitor entries
- Cost increases from rising raw material prices
- Risk of service decline due to labor shortages
- Rapid changes in consumer preferences
- Risk of store damage from natural disasters or earthquakes
- Consumption decline amid economic downturn
- Risk of quality variation in franchise stores
- Market risk from regional-limited expansion
- Competitive decline from delayed digitalization
Innovations
2024: Digital Ordering System Introduction
- Overview
- Promoting digitalization such as tablet ordering in stores to improve efficiency.
- Impact
- 20% reduction in order processing time, improved customer satisfaction
2023: Model Rollout of New Compact Store Format
- Overview
- Initiated trial rollout of even more compact standing-bar specialized stores.
- Impact
- 10% increase in store unit price, 25% reduction in opening costs
2022: Local Ingredient Utilization Strengthening Project
- Overview
- Collaborating with local producers to diversify and strengthen ingredient procurement routes.
- Impact
- 5% reduction in ingredient costs, improved local support
2021: Eco-Friendly Store Design Introduction
- Overview
- Rolled out new store designs conscious of energy saving and waste reduction.
- Impact
- 10% reduction in electricity usage, improved environmental rating
2020: Cloud-Based Back-Office Integration System Introduction
- Overview
- Integrated store management on cloud platform for operational efficiency.
- Impact
- 30% reduction in management workload, improved data analysis accuracy
Sustainability
- Introduction of energy-saving equipment and efficient store operations
- Deployment of food waste reduction programs across stores
- Promoting local production for local consumption through collaboration with local producers
- Promotion of recycling and plastic reduction
- Improving employee work environment and strengthening safety and health management
- Active participation in community contribution activities
- Regular in-house training for environmental education
- Promotion of eco-friendly containers and materials
- Logistics review considering reduction in transportation load
- Expansion of energy management system introduction