Kaihan

Basic Information

Stock Code
3133
Industry
Retail
Category Detail
Restaurants
Prefecture
Aichi Prefecture
Establishment Year
May 2003
Listing Year
April 2015
Official Website
http://www.kaihan.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yakiniku Sakai Holdings, DD Group, Horii Food, AP Holdings, Chimney, Eternal Hospitality Group, SFP Holdings, Yoshix Holdings, Kushikatsu Tanaka Holdings, INC, TWOST, Watami, Daicho

Overview

Kaihan is a growing TSE Growth-listed company founded in 2003, based in the Tokai region, operating an izakaya chain and entering the renewable energy business.

Current Situation

Kaihan recorded consolidated sales of approximately 2.79 billion yen for the fiscal year ending March 2025, while posting significant operating, ordinary, and net losses for the fiscal year ended March 2023. The mainstay izakaya business is expanding mainly in the Tokai region, with 47 stores nationwide centered on the franchise "New Era" brand. Although affected by the COVID-19 pandemic, it is working to recover performance through the closure of unprofitable stores and business format rebranding. Since 2022, it has newly entered the renewable energy business, rapidly promoting the development and operation of solar power plants using the PPA model. In 2023, it also concluded a long-term power purchase agreement with Amazon to diversify its business. In 2024, under President Naoki Morita, it has shown aggressive expansion, including the opening of an Osaka branch and the launch of overseas business (hydropower generation in Nepal). The company has approximately 62 employees and is expanding in scale.

Trivia

Interesting Facts

  • Growth company that achieved TSE listing just a few years after founding in 2003
  • New Era izakaya's signature skewers are a viral hit online
  • Actively entering renewable energy business to build new revenue base
  • Achieved rare long-term power contract with Amazon among Japanese SMEs
  • One of the first Japanese companies to tackle hydropower in Nepal
  • Owner Toshiki Hisada is the founder but has transitioned management to successors
  • Acquired subsidiary SSS operating 19 stores to expand izakaya business
  • Deploys diverse izakaya brands nationwide with strength in locally rooted customer attraction
  • Also operates low-price standing yakiniku "Jiro丸" to capture wide customer base
  • In 2024, president change coincided with new Osaka branch to strengthen Kansai entry

Hidden Connections

  • Long-term PPA contract with Amazon Data Services Japan is an exceptional achievement for an SME.
  • In the izakaya industry, franchise expansion promotes business entry for local small-scale operators.
  • Agrivoltaic renewable energy facilities serve as a regional revitalization model combining agriculture and power generation.
  • Nepal hydropower business indicates strategic expansion into new overseas fields.
  • Strengthening izakaya business via subsidiary SSS is a pillar for performance recovery.
  • Some stores managed by former pro baseball player Hayato Nakamura, creating buzz.
  • Dual pillars of domestic izakaya and renewable energy form a unique combination.
  • Since 2015 listing, multiple CEO changes over 15 years amid growth and transformation.

Future Outlook

Growth Drivers

  • Store count increase through franchise business expansion
  • Strengthened policy support in renewable energy sector
  • Expected sales growth with nationwide dining demand recovery
  • Business diversification through overseas hydropower
  • Efficient store operations via digital technology introduction
  • Strong consumer support for low-price izakaya
  • Rising demand for clean energy amid growing environmental awareness
  • Stable income securing from power contracts with major companies
  • Business opportunity expansion through collaboration with local revitalization initiatives
  • Enhanced market competitiveness through new business investments and brand refreshes
  • Cost reductions via logistics and supply chain optimization
  • Sustainable management base strengthening through talent development

Strategic Goals

  • Establishment of 100 izakaya stores
  • Achievement of 10 billion yen annual sales in renewable energy business
  • Strengthened nationwide land acquisition and expanded power generation capacity
  • Expansion of overseas hydropower business and multi-country deployment
  • Realization of business operations pursuing environmental burden reduction
  • Sustainable increase in franchisee numbers
  • 30% improvement in operational efficiency through digitalization
  • Promotion of co-creation models with local communities
  • Talent development emphasizing diversity and inclusion
  • Advanced corporate governance and thorough information disclosure

Business Segments

Restaurant Franchise Business

Overview
Provides izakaya franchise brands and operation support to maximize franchisee profits.
Competitiveness
Strong brand power and affordable product lineup earning franchisee support.
Customers
  • Individual business owners
  • Restaurant operators
  • New brand franchisees
  • Local government supporters
Products
  • Franchise rights granting
  • Store operation support
  • Product and menu provision
  • Management consulting

Renewable Energy Solutions Business

Overview
Provides introduction support and operation management services for solar power centered on the PPA model, pursuing stable revenue.
Competitiveness
Abundant track record in land acquisition and long-term contracts with major companies.
Customers
  • Local governments
  • Agricultural corporations
  • General companies
  • Power wholesalers
Products
  • Solar power equipment design and construction
  • Agrivoltaic solar power support
  • Power sales contracts (PPA)
  • Equipment maintenance services

Restaurant Product Wholesaling Business

Overview
Wholesale business supplying stable ingredients and related products to restaurants, supporting operational efficiency.
Competitiveness
Rapid delivery network closely tied to the region.
Customers
  • Restaurant chains
  • Retail stores
  • Food wholesalers
  • Restaurant industry distributors
Products
  • Ingredient wholesale sales
  • Seasoning supply
  • Processed food wholesaling
  • Beverage supply

Competitive Advantage

Strengths

  • Strong store base in the Tokai region
  • Diversifying business portfolio
  • Brand recognition of franchises
  • New expansion into renewable energy business
  • Revenue structure improvement through management reform

Competitive Advantages

  • Efficient business expansion through low-cost suburban openings
  • Diversification of distinctive izakaya brands
  • Stable revenue securing via PPA model utilization
  • Revenue reliability from long-term power sales contracts with major firms
  • Customer support from regionally rooted store deployments

Threats

  • Decline in dining out consumption due to COVID-19 impact
  • Intense competition with rival izakaya chains
  • Risk of fluctuations in renewable energy policies
  • Challenges in talent acquisition and development
  • Cost increases from fluctuating raw material prices

Innovations

2021: New Era Franchise Agreement Signed

Overview
Signed a franchise agreement for the "New Era" brand with Fads Co., Ltd.
Impact
Contributed to expansion of franchise stores.

2022: Entry into Renewable Energy Business

Overview
Established KR ENERGY JAPAN LLC and commenced solar power plant development.
Impact
Diversification of business revenue and securing growth sources.

2023: Long-Term Power Sales Agreement with Amazon Signed

Overview
Concluded PPA contract with Amazon Data Services Japan via KR ENERGY JAPAN.
Impact
Successfully built a stable long-term revenue base.

2023: Joint Development of Power Sales Price Aggregation System

Overview
Developed generation volume and power sales price aggregation system for non-FIT solar with Energy Links Co., Ltd.
Impact
Expected improvement in energy operation efficiency.

2024: Nepal Hydropower Business Launch

Overview
Commenced operation of 8 hydropower plants in Nepal with total capacity of 285.44 MW.
Impact
Expansion of growth opportunities through overseas business.

Sustainability

  • CO2 reduction through solar power equipment development
  • Coexistence of agriculture and agrivoltaic solar power
  • Land acquisition and operations considerate of local communities
  • Contribution to promoting renewable energy adoption
  • Promotion of environmentally considerate store operations