Garden

Basic Information

Stock Code
274A
Industry
Retail
Category Detail
Restaurants
Prefecture
Tokyo
Establishment Year
December 2015
Listing Year
November 2024
Official Website
https://gardengroup.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Garden is a growth company established in 2015 that actively engages in M&A in the restaurant industry and operates diverse brands.

Current Situation

Garden recorded net sales of 17.1 billion yen and operating profit of 1.8 billion yen for the fiscal year ending February 2025, maintaining solid performance. Its mainstay is the house-style ramen chain 'Ikku-ya,' which is expanding both domestically and internationally. It owns diverse restaurant formats such as meat sushi and udon, strengthening its growth base. It is expanding its business areas through aggressive M&A and advancing organizational restructuring as a holding company. Under Representative Director and President Ken Kawashima, it is strengthening its management foundation and focusing on overseas expansion. In addition to store development in urban areas centered on Shinjuku, it has also entered Malaysia. The number of employees is approximately 3,300, and the scale is expanding. The shareholder composition has Mack Co., Ltd., the parent company, owning about 49%, with many stable shareholders. Going forward, strengthening unique brands and developing overseas markets will be the pillars of its growth strategy.

Trivia

Interesting Facts

  • Ikku-ya is one of the representative brands of house-style ramen.
  • 'Yamashita Serious Udon' is a brand founded by a former comedian.
  • One of the few house-style ramen companies with overseas stores in Malaysia.
  • Expanded scale in 2018 through absorption and merger of multiple group companies.
  • Previously operated karaoke business.
  • Famous baseball player Tsuyoshi Shinjo serves as brand ambassador.
  • Portion of Karaoke Mack business divested to Daiichi Kosho.
  • Company actively utilizing M&A specialized in restaurant industry.
  • Total issued shares: 5 million, implementing prudent capital policy.
  • Incorporates employee stock ownership system.
  • Head office in Shinjuku-ku, Tokyo, strong in metropolitan area.
  • Newly listed on Tokyo Stock Exchange Standard Market in 2024.
  • Characteristic for multi-format deployment in restaurant retail sector.
  • Approximately 3,300 employees including full-time and part-time.
  • Deploys diverse formats including ramen, udon, sushi, and steak.

Hidden Connections

  • High management stability due to capital relationship with parent company Mack Co., Ltd.
  • Promoting brand penetration to sports fans through Tsuyoshi Shinjo.
  • Shifted focus to restaurant business utilizing former Karaoke Mack assets.
  • Malaysia entry is part of overseas expansion strategy leveraging group resources.
  • Promotes employee participation as shareholders through stock ownership association.
  • Established business division specialized in restaurant industry M&A.
  • Multi-format deployment contributes to risk diversification and market responsiveness.
  • Strengthened business base by integrating multiple group companies such as former Yushin and Mybis.

Future Outlook

Growth Drivers

  • 対応 to diverse customer needs through multi-format deployment
  • Aggressive market share expansion through M&A
  • Expansion of new markets in Southeast Asia and other overseas regions
  • 推進 of region-focused strategy through strengthening domestic specialty stores
  • Expansion of digital marketing and EC channels
  • Enhanced recognition through brand ambassadors
  • Development of health-oriented menus and improved customer satisfaction
  • Service enhancement through improved employee training quality
  • Promotion of new investments through stable financial base
  • Store count increase through franchise affiliate promotion
  • Strengthening of sustainable environmental measures and social responsibility
  • 推進 of digital transformation

Strategic Goals

  • Achieve overseas sales ratio of 30% or more
  • Double store network in major domestic cities
  • Market launch and stabilization of new format brands
  • Enhance corporate value through sustainability goal achievement
  • Maintain and improve employee satisfaction to 90% or higher
  • Perfect introduction of digital marketing
  • Achieve food loss reduction rate targets
  • Strengthen corporate profitability through shareholder value maximization
  • Improve repeat rate through enhanced customer experience
  • Annual sales growth rate of 10% or more through new investments

Business Segments

Restaurant Franchise Expansion

Overview
Business supporting franchise expansion of diverse brands.
Competitiveness
Stable support through abundant brands and know-how
Customers
  • Individual operators
  • Small and medium enterprises
  • Franchise affiliates
Products
  • Store operation manuals
  • Brand licenses
  • Menu development support

Ingredients Procurement and Logistics Support

Overview
Provides efficient ingredients procurement and logistics services to reduce costs.

Competitiveness
Logistics optimization through group collaboration
Customers
  • Group stores
  • External restaurant chains
  • Wholesalers
Products
  • Bulk raw material procurement
  • Refrigerated/frozen logistics services
  • Quality management systems

Restaurant M&A Consulting

Overview
Supports business expansion using M&A in the restaurant industry.
Competitiveness
Specialized team with extensive industry experience
Customers
  • Investment funds
  • Business succession seekers
  • Restaurant owners
Products
  • Acquisition candidate introductions
  • Business reorganization support
  • Fundraising assistance

Overseas Business Expansion Support

Overview
Business supporting overseas expansion starting with Malaysia.
Competitiveness
Knowledge and track record in Asian markets
Customers
  • Overseas store operators
  • Overseas food service providers
Products
  • Overseas market research
  • Local partner introductions
  • Brand license provision

Competitive Advantage

Strengths

  • Diverse brand portfolio
  • Business expansion through aggressive M&A
  • Store deployment leveraging regional characteristics
  • Operational strength from abundant workforce
  • High recognition centered in the Tokyo metropolitan area
  • Precedent in overseas advancement
  • Efficient management through holding company structure
  • Experienced leadership from the representative
  • Community-based marketing
  • Risk diversification through multiple formats
  • Localization capability of store brands
  • Utilization of employee stock ownership plan
  • High customer satisfaction with menus
  • Comprehensive franchise support
  • Effective fundraising capabilities

Competitive Advantages

  • Recognition and support in the house-style ramen industry
  • Rapid business expansion and integration through M&A
  • Customer base expansion through diverse restaurant formats
  • Improved credibility through listing on the Tokyo Stock Exchange Standard Market
  • Ongoing development and deployment of new format brands
  • Experience advancing into overseas markets like Malaysia
  • Management stability from strong capital relationships
  • Quality and efficiency of store operation know-how
  • Differentiation through regionally rooted store deployment
  • Employee motivation enhancement via stock ownership association
  • Synergies from diverse formats
  • High M&A execution capability by specialized team
  • Flexibility in marketing strategies
  • Speed in launching new brands
  • Sustainable growth through stable financial base

Threats

  • Intense competition in the restaurant industry
  • Pandemic risks such as new infectious diseases
  • Cost pressures from raw material price fluctuations
  • Decline in demand due to changing consumer preferences
  • Overseas expansion risks from foreign exchange fluctuations
  • Decline in operational efficiency due to labor shortages
  • Cost increases from strengthened labor regulations
  • Market share capture by competitors' M&A
  • Impact of economic fluctuations on dining out demand
  • Increased new entrants and differentiation challenges
  • Compliance burden from strengthened food hygiene regulations
  • Image deterioration from brand fatigue

Innovations

2024: Tokyo Stock Exchange Listing

Overview
Newly listed on the Standard Market, enhancing fundraising and credibility.
Impact
Successfully strengthened fundraising and improved recognition.

2023: Expansion of Overseas Stores in Malaysia

Overview
Strengthened store deployment in Southeast Asia market, developing new customer base.
Impact
Contributed to sales diversification and new market development.

2022: Trademark Acquisition for New Brand 'Yamashita Serious Udon'

Overview
Acquired trademark of popular udon shop and promoted in-house branding.
Impact
Successfully strengthened brand and differentiated.

2021: Acceleration of Restaurant Chain M&A

Overview
Expanded business base through acquisitions and mergers of multiple restaurant formats.
Impact
Achieved diversification of business portfolio.

2020: Activation of Employee Stock Ownership Plan

Overview
Strengthened stock ownership plan to promote employee sense of belonging.
Impact
Contributed to improving employee motivation and retention.

Sustainability

  • Store operation improvements to reduce food loss
  • Active adoption of local produce and ingredients
  • Promotion of work-style reforms for employees
  • Introduction of energy-saving equipment
  • Regular donations and support activities for local communities
  • Continuous strengthening of safety and hygiene management
  • Thorough waste sorting to reduce environmental impact
  • Programs to promote active roles for women and young employees
  • Awareness activities for developing sustainable food culture
  • Initiatives to secure workforce in the restaurant industry