Kyokuto

Basic Information

Stock Code
2300
Industry
Service Industry
Category Detail
Lifestyle Services
Prefecture
Fukuoka Prefecture
Establishment Year
June 1964
Listing Year
April 2002
Official Website
https://k-cleaning.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
CVS Bay, Karura, T Alpha, WASH House, Jiro the Futon Roller, Tokai, Hakuyosha

Overview

Kyokuto is a major cleaning service company founded in 1964, operating hundreds of stores and numerous factories primarily in Kyushu and across a wide area of western Japan, and is a stably growing enterprise.

Current Situation

Kyokuto recorded net sales of 6.6 billion yen and net profit of 50 million yen in the fiscal year ended February 2020, maintaining a solid financial foundation. In its core cleaning business, it operates 601 stores and 30 factories centered in Kyushu, strengthening community-based services. Through efficient plant operations and a workforce of 252 employees, it provides high-quality cleaning. Moving forward, it is focusing on expansion into the Kanto, Kansai, and Chugoku regions while promoting inter-regional deployment. The management team, led by the representative director chairman and president from the Makihei family, contributes to stable management and building customer trust. In terms of sustainability, it addresses reducing environmental impact and improving operational efficiency, meeting consumer needs with low-price strategies such as 100-yen cleaning. In the future, it aims to accelerate growth through digitalization and strengthening its store network, responding to market diversification and differentiation from competitors. It is also actively contributing to local society.

Trivia

Interesting Facts

  • Founded in Fukuoka in 1964 and steadfastly community-focused
  • One of the largest cleaning chains in the Kyushu area
  • Introduced 100-yen cleaning early on and pursued low-price strategy
  • Promotes employee participation through stock ownership association for employees
  • Chairman and president from the same family, maintaining stable management
  • Operates more than 30 in-house factories and 21 plants in total
  • Possesses diverse cleaning technologies in response to customer requests
  • Local banks such as Nishi-Nippon City Bank listed as major shareholders
  • Listed in 2002, belongs to the Tokyo Stock Exchange Standard Market
  • Clothing repair services are also one of its main businesses

Hidden Connections

  • Collaborates with local financial institutions to contribute to regional economic support
  • Competes with major peer Hakuyosha in regions and services
  • Pioneered the low-price market with 100-yen cleaning business, acquiring new customer segments
  • Maintains stable management structure with representative directors from the Makihei family
  • High customer loyalty due to community-based store deployment
  • Strength in integrating production equipment and services due to large number of plants
  • Builds brand image through sponsorship and participation in local cultural events
  • Formed unique market area specialized in linen supply for local medical facilities

Future Outlook

Growth Drivers

  • Store expansion centered in western Japan and community-based strategy
  • Expansion of low-price cleaning market
  • Expansion of linen supply business into medical and nursing care sectors
  • Improved customer service convenience through digitalization
  • Ongoing introduction of environmentally friendly technologies and strengthened community contributions
  • Increasing demand for delivery and pickup services
  • Stable funding secured through collaboration with regional financial institutions

Strategic Goals

  • Double stores outside Kyushu to strengthen nationwide deployment
  • Improve profitability and expand 100-yen cleaning business
  • Business process reform toward zero environmental impact
  • Nationwide standardization of digital reservation and pickup systems
  • Double linen supply sales in medical and nursing care sectors

Business Segments

Hotel and Inn Linen Supply

Overview
Provides high-quality linen supply and maintenance to hotels and inns.
Competitiveness
Regional close-knit rapid delivery system
Customers
  • Hotel chains
  • Inn operators
  • Tourist facilities
Products
  • Sheets
  • Pillow covers
  • Towels
  • Bathrobes

Hospital and Nursing Home Linen Supply

Overview
Provides medical and nursing linen compliant with hygiene standards.
Competitiveness
High hygiene and quality control
Customers
  • Hospitals
  • Clinics
  • Nursing homes
Products
  • Gowns
  • Towels
  • Sheets
  • Deodorizing linen

Restaurant Linen Supply

Overview
Deploys durable linen supply for the food service industry.
Competitiveness
Customization to meet industry needs
Customers
  • Restaurants
  • Cafes
  • Banquet halls
Products
  • Tablecloths
  • Napkins
  • Aprons

Cleaning Plant Operations

Overview
Efficient cleaning services utilizing in-house factories and plants.
Competitiveness
High-quality processing through introduction of latest technology
Customers
  • Stores
  • Inter-business transactions
Products
  • Clothing cleaning
  • Special material processing

Delivery and Pickup Service

Overview
Provides customer-focused delivery and pickup services emphasizing convenience.
Competitiveness
Wide-area rapid delivery network
Customers
  • General consumers
  • Corporate customers
Products
  • Delivery cleaning
  • Pickup and delivery network

Environmental Response Promotion Service

Overview
Specialized services supporting environmental measures associated with cleaning.
Competitiveness
Environmental technology introduction through regional collaboration
Customers
  • Municipalities
  • Corporations
Products
  • Wastewater treatment
  • Environmental impact reduction technology

Competitive Advantage

Strengths

  • Store network centered in Kyushu and wide-area expansion capabilities
  • Diversified linen supply business
  • Stable management base and financial strength
  • High reliability of community-based services
  • Price competitiveness through 100-yen cleaning
  • Quality control capabilities via in-house factories
  • Leadership of experienced management team
  • Efficient plant operation system
  • Service deployment to a wide range of customer segments

Competitive Advantages

  • Balanced business deployment across multiple regions to expand customer touchpoints
  • Product lineup that balances affordability and high quality
  • Stable supply capacity and quality control through in-house factories and plants
  • Strong relationships with local financial institutions for funding
  • Risk reduction from market fluctuations through business diversification
  • Maximization of efficiency and customer satisfaction through continuous operational improvements
  • Flexible response to regional needs through close customer contact

Threats

  • Price competition and store expansion by competitors
  • Risk of domestic market shrinkage due to population decline
  • Service quality degradation due to labor shortages
  • Cost increases from strengthened environmental regulations
  • Decline in competitiveness due to delays in technological advancement
  • Emergence of new cleaning chains
  • Deterioration of consumer sentiment due to economic fluctuations

Innovations

2023: Introduction of Digital Reception System

Overview
Digitalized store reservations and pickup reception to improve customer convenience.
Impact
15% improvement in reception efficiency, boosted customer satisfaction

2022: Expansion of Environmentally Friendly Detergent Adoption

Overview
Introduced low-environmental-impact detergents across all factories to strengthen sustainability.
Impact
20% reduction in chemical usage

2021: Update to Energy-Saving Equipment

Overview
Updated factory washers and dryers to high-efficiency models to achieve cost reductions.
Impact
10% reduction in energy consumption

2020: Expansion of Delivery Network

Overview
Aimed to improve repeat rate for delivery cleaning and expand service network.
Impact
30% increase in delivery customers

Sustainability

  • Expansion of low-environmental-impact detergent use
  • Introduction of energy-saving factory equipment
  • Adoption of wastewater recycling technology
  • Active participation in local cleanup activities
  • Promotion of measures to reduce waste plastic