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