Arigatou Service

Basic Information

Stock Code: 3177
Industry: Retail
Category Detail: Specialty Stores & Drugstores
Prefecture: Ehime Prefecture
Establishment Year: October 2000
Listing Year: November 2012
Official Website: http://www.arigatou-s.com/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Mandarake, Primecs, Kaitori Kingdom, ZOA, Linnet Japan Group, T2, Book Off Group Holdings

Overview

Arigatou Service is a retail company established in 2000 and based in Ehime Prefecture. It is a regionally focused growth company primarily engaged in restaurant operations and used goods reuse business.

Current Situation

Arigatou Service recorded consolidated net sales of 10.608 billion yen, operating income of 880 million yen, and net income of 503 million yen for the fiscal year ending February 2025. In the dining sector, it excels in franchised operations such as Mos Burger and Tomato & Onion, as well as its own brands. In the reuse business, it handles used goods sales including Book Off and Hard Off. After receiving an administrative penalty for violation of the Labor Standards Act in 2019, it has been strengthening its labor management system. While solidifying its domestic foundation, it has established subsidiaries in Southeast Asia (Cambodia and Thailand) and is pursuing overseas expansion. Moving forward, it aims for sustainable management through diversified store operations, growth in the reuse business, and collaboration with local communities. In 2020, it strengthened its business foundation by making a related company a subsidiary. Toward 2030, it plans to accelerate digital marketing and new business formats for medium- to long-term business expansion.

Trivia

Interesting Facts

Former name MGS derives from the on'yomi readings of the initials for 'Brightly, Energetically, Honestly'
Uses 'Ogenki-sama' instead of 'Otsukaresama' as a greeting for appreciation
Early realization of combined reuse and dining operations in regional cities
Previously served as uniform sponsor for FC Imabari
History of Okada Takeshi serving as educational advisor
Unique business model simultaneously managing multiple regionally focused dining formats
Early expansion into Southeast Asia with establishment of local entities
2019 illegal overtime issue at some stores became a social topic
Owns the sports facility Arigatou Service Yume Stadium
One of the few food retailers to receive administrative penalty for suspected Labor Standards Act violation
Attracting attention from various sectors as an excellent mid-sized regional food-related company
Conducts multifaceted and broad-area business while emphasizing regional closeness

Hidden Connections

Acquired operational rights for Mos Burger in the region for local management
Successfully expanded regional market share by acquiring reuse business from Imabari Department Store
Spirit of former name AGY 'Akaku, Genki ni, Yari-gai aru' lives on in company culture
Labor office document referral triggered by compliance issues in Matsuyama restaurant operations
Broadened food manufacturing business through acquisition of related company GBC
Regional sports support developed through prior connection with Okada Takeshi
Supported regional sports as uniform sponsor for FC Imabari
Holds business partnerships with nationwide chains like Book Off and Hard Off

Future Outlook

Growth Drivers

Overseas market expansion centered on Southeast Asia
Strengthening customer base through multi-format restaurant rollout
Business efficiency via digital technology adoption
Increased demand for reuse business amid rising environmental awareness
Enhanced brand loyalty through regionally focused services
Expansion in health-oriented and local production food demand
Improved corporate evaluation and talent acquisition via labor management enhancements
New format development and franchise contract expansion
Business area expansion through related company acquisitions
Risk diversification effects from strengthened regional collaborations
Promotion of environmentally considerate store operations
Response to diversifying consumer needs

Strategic Goals

Surpass 20 billion yen in sales
Achieve over 20% sales ratio from Southeast Asia
Establish environmental load reduction systems across all stores
Complete diversification of food-related business
Achieve business optimization through digital transformation
Maintain turnover rate below 10% via improved employee satisfaction
Strengthen ties with regional communities
Embed sustainability management into company culture
Promote rollout of new dining formats domestically and internationally
Enhance brand value as a socially responsible company

Business Segments

Restaurant Operation Services

Overview

Business segment providing comprehensive support for restaurant operations and franchise management.

Competitiveness

Accumulated know-how in regional closeness and multi-format operations

Customers

Franchise outlets
Commercial facilities
Local governments
Corporate executives

Products

Store operation know-how
Store management systems
Ingredient procurement support
Staff training programs

Reuse Retail Store Operations

Overview

Reuse store operations centered on buying and selling used goods.

Competitiveness

Brand power from partnership with Book Off

Customers

Used goods consumers
Used goods retailers
Sole proprietors

Products

Sales of used book-related products
Handling of recycled home appliances
Distribution of hobby and game products

Dairy Products & Processed Food Sales

Overview

Manufacturing and wholesale of dairy products and processed foods through related companies.

Competitiveness

Trusted quality domestically and regionally

Customers

Retail stores
Restaurants
Mail-order businesses

Products

Ham & sausages
Yogurt
Other dairy products

Overseas-Related Business

Overview

Operational support for overseas subsidiaries centered on Cambodia and Thailand.

Competitiveness

Business expansion adapted to local culture

Customers

Southeast Asian markets
Local subsidiaries
International logistics providers

Products

Local rollout of reuse business
Local restaurant operation support

Competitive Advantage

Strengths

Regional expertise in restaurant operations
Diversified business portfolio across multiple formats
Solid partnerships in the reuse market
Early entry into Southeast Asia
Extensive ingredient procurement network
Efficient management through organizational integration
Long-standing local brand recognition
Ownership of franchise rights for multi-format dining stores
Experienced management team
Strong ties with local communities
Multiple sales channels
Coexistence of own brands and FC brands
Product diversification utilizing related companies
Focus on employee training
Stabilized financial foundation

Competitive Advantages

Regionally rooted management base centered in Ehime Prefecture
High revenue stability from combined reuse and dining business model
Broadened customer base through diverse formats
Synergies from collaboration with nationwide reuse chains
Secured future growth areas through overseas subsidiaries
Improved corporate image and trust via enhanced labor management
Maximized consumer touchpoints through diverse sales channels
Strengthened product lineup with multiple contracts from major franchise brands
Promoted store expansion through ties with regional housing market
Market share growth via aggressive new store openings
Strengthened and expanded business areas through related company acquisitions
Captured wide customer segments with diverse dining brands
Enhanced brand loyalty through strengthened information dissemination
Established logistics network connecting upstream and downstream
Risk diversification through multi-regional expansion

Threats

Intensifying competition in domestic and international retail
Rising operational costs due to labor shortages in dining industry
Reputation risk from Labor Standards Act violations
Shifts in consumer perceptions of used goods value
Market entry by new competitors
Uncertainty in dining industry due to COVID-19
Rising raw material and ingredient costs
Concerns over market shrinkage from regional population decline
Political and cultural risks in overseas operations
Increased operational costs from stricter regulations
Need for business transformation due to rising environmental awareness
Delays in digital transformation

Innovations

2023: Strengthening Digital Marketing

Overview: Expanded online sales and marketing initiatives to increase customer touchpoints.
Impact: EC sales increased 20% year-over-year

2022: Introduction of Store Operation Efficiency System

Overview: Implemented POS integration and optimized staffing to reduce store costs.
Impact: Achieved 5% reduction in labor costs

2021: Overseas Expansion via Subsidiary Establishment

Overview: Established subsidiaries in Cambodia and Thailand to promote local business rollout.
Impact: Expanded international sales ratio to 5%

2020: Product Diversification through Related Company Acquisition

Overview: Acquired shares in Obara Ham Workshop and Daigo to strengthen food manufacturing.
Impact: Sales increased by 1 billion yen

2024: Strengthening Labor Management System

Overview: Introduced attendance management system and enhanced labor training in response to illegal overtime issues.
Impact: Continued zero Labor Standards Act violations

Sustainability

Promoting reduction of plastic packaging in stores
Contributing to waste reduction through reuse business
Creating employment rooted in local communities
Promoting local production for local consumption of ingredients
Strengthening employee health management
Implementing environmentally considerate store operations
Regional contributions through CSR activities
Considering introduction of fair trade products
Setting standards for sustainable material procurement
Introducing energy-efficient equipment
Collaborative activities with local environmental protection groups
Setting internal targets for improving recycling rates