A.P. Holdings

Basic Information

Stock Code
3175
Industry
Retail
Category Detail
Restaurants
Prefecture
Tokyo
Establishment Year
February 2004
Listing Year
September 2012
Official Website
http://www.apcompany.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yakiniku Sakai Holdings, J Group, DD Group, Kaifan, Chimney, Eternal Hospitality Group, SFP, Yoshix Holdings, Kushikatsu Tanaka Holdings, Wata mi, Daisho

Overview

A.P. Holdings is a mid-sized food service retail company established in 2004, with the local chicken izakaya 'Tsukada Nojo' as its main brand, operating in the Tokyo metropolitan area and Kansai region.

Current Situation

In the fiscal year ended March 2024, it recorded consolidated sales of approximately 20.6 billion yen and a net loss of approximately 452 million yen, focusing on business reconstruction and operational improvements. Its main local chicken izakaya 'Tsukada Nojo' operates multiple brands mainly in the Tokyo metropolitan area and Kansai, promoting product development emphasizing local production for local consumption. In customer service, it delegates service authority to staff to improve customer satisfaction, but has faced administrative penalties in the past due to menu labeling irregularities and is working to restore trust. Amid sluggish performance, it aims to acquire new customers with new brands like 'Yakitori Tsukada' and is advancing store renovations and product refreshes. Moving forward, it will promote efficiency in existing stores and new business formats while addressing intensifying domestic competition and continuing to explore overseas expansion. It emphasizes sustainable farm management and strengthened quality control, outlining a growth strategy combining digitalization and talent development.

Trivia

Interesting Facts

  • Introduced unique system 'Jab' granting staff up to 400 yen service authority.
  • Developed customer service system enhancing loyalty through business cards with titles and positions.
  • Thorough quality control via 100% in-house and partner farm rearing of local chicken.
  • Rapid growth since opening first store in Hachioji, Tokyo in 2007.
  • Achieved overseas expansion with hot pot specialty brand in Singapore.
  • Received administrative surcharge payment order from Consumer Affairs Agency in 2019 for improper labeling.
  • Main local chicken brands derived from Nisshin City Miyazaki, Kirishima City Kagoshima, and Shintoku Hokkaido.
  • Introduced new brand 'Yakitori Tsukada' supervised by professional designer Yusuke Sato.
  • Customer satisfaction initiative of drawing messages on dishes is well-received.
  • Contributes to regional agriculture revitalization through local specialty chicken brands.
  • Established employee stock ownership plan to promote employee-participatory management.
  • Built multi-channel strategy with expansion to major cities nationwide.

Hidden Connections

  • Closely collaborates with partner farms to oversee local chicken quality from start to finish.
  • Promotes regional revitalization projects in partnership with local governments and tourism industry.
  • Part of stable supply network for domestic izakaya market alongside multiple competitors.
  • Focusing on stricter and more transparent food labeling after Consumer Affairs Agency guidance.
  • Leveraging overseas expansion know-how to expand franchise network in Asian markets.
  • Collaborating with external consulting firms to restore brand image.
  • Developed unique customer service evaluation system influencing industry standards.
  • Unique customer service 'Jab' builds information sharing platform among employees.

Future Outlook

Growth Drivers

  • Expansion and differentiation of regional specialty local chicken brands
  • Customer satisfaction enhancement through improved customer service
  • Promotion of new formats and existing store efficiency
  • Utilization of digital reservation and sales platforms
  • Acceleration of franchise expansion domestically and internationally
  • Strengthening of farm-direct raw material supply system
  • Brand value improvement through sustainability efforts
  • Organizational capability enhancement via talent development
  • Expansion of product lineup to meet market needs
  • Trust restoration and maintenance through food labeling and legal compliance

Strategic Goals

  • Complete rollout of local chicken brand to major cities nationwide
  • Achieve multi-store expansion to major Asian cities overseas
  • Establish customer service system maintaining 90%+ satisfaction
  • Achieve 100% transparency in food labeling with thorough compliance
  • Achieve operating profit black ink and build stable management base
  • Implement sustainability metrics across all operations
  • Continuously improve employee satisfaction
  • Achieve 80%+ digitalization rate for business efficiency
  • Conduct 10+ community contribution activities annually
  • Grow new business sales to 15%+ of total

Business Segments

Product Supply to Food Service Chains

Overview
Stably supplies high-quality local chicken meat and cooking materials to restaurants.
Competitiveness
Superior local chicken supply network with quality control.
Customers
  • Own directly operated stores
  • Franchise stores
  • Food service operators
  • Hotel and ryokan operators
  • Catering companies
Products
  • Local chicken meat
  • Duck meat
  • Meatball products
  • Miso sauce
  • Charcoal grill equipment

Meat Processing and Production

Overview
Produces and sells various meat processed products using local chicken.
Competitiveness
Stable raw material procurement through own farms and partner farmers
Customers
  • Meat markets
  • Food processors
  • Supermarkets
  • Meat wholesalers
Products
  • Chicken processed products
  • Chicken meatballs
  • Miso-marinated meat
  • Ready-to-cook meat products

Overseas Store Expansion Support

Overview
Provides store opening support and operations mainly in Asia.
Competitiveness
Fusion of brand power and local needs
Customers
  • Overseas food service operators
  • Local partner companies
  • Overseas subsidiaries
Products
  • Restaurant operations
  • Menu development
  • Talent development
  • Marketing support

Competitive Advantage

Strengths

  • Strong brand identity of regional specialty local chicken
  • Unique customer service 'Jab' authority delegation
  • Risk diversification through multi-format operations
  • Integrated raw material supply from direct operations and partner farms
  • Highly specialized customer service training system
  • Strong presence in urban centers and Kansai region
  • Product differentiation and commitment
  • Long-cultivated restaurant chain operation know-how
  • Hybrid online-offline sales channels
  • Challenge into overseas markets

Competitive Advantages

  • Complete in-house and partner farm rearing system for local chicken provides competitive edge
  • Staff authority delegation enhances customer satisfaction and relationships
  • Diversification strategy through multiple regional specialty brands
  • Asia overseas expansion reduces domestic dependency risks
  • High repeat customer rate due to high-quality local chicken menus
  • Unique points and business card system promotes customer loyalty
  • Continuous product development and new brand launches for differentiation from competitors
  • Management innovation driven by experienced executives
  • Maintaining good relations with local communities through farmer support
  • Effective cost management via stable procurement network

Threats

  • Intensifying competition in domestic izakaya market leading to price wars
  • Risk of brand image decline from past scandals
  • Impact of COVID-19 and other food service market instability
  • Risk of rising raw material prices for local chicken etc.
  • Challenges of cultural and regulatory differences in overseas expansion
  • Legal risks from food labeling and safety regulations
  • Risk of customer loss from delayed digital adaptation
  • Labor market difficulties in talent acquisition
  • Rapid changes in consumer preferences
  • Adverse effects on store operations from natural disasters

Innovations

2023: New brand 'Yakitori Tsukada' launched

Overview
Opened a new local chicken yakitori store in Nakameguro with customer service improvements. Design collaboration with Yusuke Sato.
Impact
Certain effects in acquiring new customers and brand refresh.

2022: Enhanced store customer service authority delegation 'Jab' system

Overview
Expanded staff authority for customers to promote individualized services.
Impact
Contributed to higher customer satisfaction and repeat visits.

2021: Introduced digital reservation management system

Overview
Renewed official website and SNS-linked reservation system for efficient operations.
Impact
Reduced operational management costs and improved customer convenience.

2020: Started quality control enhancement program

Overview
Strengthened traceability across all processes of local chicken production and processing.
Impact
Contributed to restoring and strengthening food safety trust.

2020: Singapore opening to strengthen overseas expansion

Overview
Began overseas rollout of new hot pot specialty format 'TSUKADA NOJO'.
Impact
Aims to improve global brand recognition.

Sustainability

  • Support for sustainable chicken production in collaboration with contract farmers
  • In-store implementation of food loss reduction measures
  • Contributions to regional agriculture promotion and economic revitalization
  • Promotion of work-style reforms and enriched employee welfare
  • Strengthened safety and hygiene management with regular audits
  • Traceability management of ingredients used in each store