Chimney

Basic Information

Stock Code
3178
Industry
Retail
Category Detail
Restaurants
Prefecture
Tokyo
Establishment Year
September 2009
Listing Year
December 2012
Official Website
https://www.chimney.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yakiniku Sakai Holdings, Jay Group Holdings, DD Group, Kaifan, AP Holdings, Eternal Hospitality Group, SFP Holdings, Yoshix Holdings, Kushikatsu Tanaka Holdings, Ikka Holdings, Atom, Watami, Colowide, Ten Allied, Daisho

Overview

Chimney is a major izakaya operator established in 1984, operating multiple formats such as "Hana no Mai," and is a stable restaurant chain under the Yamaya Group.

Current Situation

Chimney recorded group sales of approximately 37.6 billion yen in 2023 as a major izakaya chain. Centered on representative brands "Hana no Mai" and "Sakana-ya Dojo," it operates nationwide with a focus on multi-store expansion. With Yamaya as its parent company, it leverages a stable capital base for aggressive new format development and business acquisitions. In 2024, it also launched the yakiniku format "Yakiniku Ushiboshi." Although it has experienced losses in recent years, it is addressing challenges through profit structure reforms and store differentiation. It is focusing on sustainability and IT implementation to strengthen store operations tailored to customer needs. Aiming to become one of Japan's top izakaya groups by 2030.

Trivia

Interesting Facts

  • Started as a JUSCO izakaya franchise
  • Stores have original menus with significant discretion
  • Achieved stores in all 47 prefectures nationwide
  • Withdrew from Vietnam expansion to focus on domestic rebuilding
  • Expanding yakiniku business to strengthen new formats
  • Representative director changed in 2022; president is Atsushi Iida
  • Entered under liquor specialist Yamaya for stable management
  • Experienced administrative orders for food poisoning and insider trading issues
  • Focuses on human resources with own training centers
  • Launched official app in 2019, discontinued in 2021
  • Actively pursuing business expansion and format integration via M&A
  • Some stores feature sumo association-supervised dohyo rings
  • Early adoption of smartphone payments for customer convenience
  • Grants significant discretion to store managers
  • Thorough freshness management via nationwide logistics

Hidden Connections

  • Parent company Yamaya belongs to Aeon Group, indirectly returning Chimney to Aeon Group
  • Management buyout (MBO) via former F.D. entity became catalyst for turnaround
  • Was once subsidiary of Niku Kuu, strong ties to meat processor
  • Established grape division supervised by Japan's top sommelier, venturing into non-food businesses
  • Chimney subsidiaries include Ota Market Chimney and Gyosen Suisan for ingredient distribution
  • Holds 34% of Tsubohachi shares, expanding store network via format collaboration
  • Emphasizes store uniqueness, allowing response to local needs beyond manuals
  • Operates over 12 logistics centers nationwide for regional ingredient supply network

Future Outlook

Growth Drivers

  • Multi-format deployment for multifaceted customer needs
  • Cross-growth strategies for new and existing formats
  • Improved ingredient freshness and cost reductions via logistics enhancements
  • Enhanced customer services via IT and digital technologies
  • Market share expansion via M&A and business acquisitions
  • Improved corporate image through sustainability initiatives
  • Strengthened employee training and development
  • Further penetration into local markets
  • Enhanced private rooms and high-value-added services
  • New customer acquisition and improved repeat rates
  • Sales growth from recovering food service market
  • Optimized balance of directly-operated and franchise stores

Strategic Goals

  • Maintain/expand to over 500 stores across 47 prefectures
  • Grow new formats to over 30% of total sales
  • Establish sustainable logistics and ingredient supply base
  • Achieve over 80% employee satisfaction
  • Formulate and execute environmental impact reduction goals
  • Business efficiency and customer experience improvements via DX
  • Increase franchise partners and strengthen support
  • Expand revenue share from yakiniku and Western food
  • Improve sustainable procurement ratio
  • Build trust through strengthened community partnerships

Business Segments

Restaurant Operations Support

Overview
Provides comprehensive support for operational efficiency and quality maintenance at directly-operated and FC stores.
Competitiveness
Accumulated know-how in multi-store operations and training systems
Customers
  • Directly-operated store staff
  • Franchise partner owners
  • Food service business partners
Products
  • Store operation systems
  • Menu development support
  • Training programs

Logistics and Ingredient Supply

Overview
Stably supplies fresh ingredients nationwide from multiple bases.
Competitiveness
Regional logistics network and direct delivery system
Customers
  • Group stores
  • External restaurants
  • Retail stores
Products
  • Fresh fish and seafood
  • Meats
  • Processed foods
  • Delivery services

Restaurant Brand Acquisition and Operations

Overview
Acquires and operates restaurant businesses to expand scale.
Competitiveness
Business turnaround and store expansion capabilities
Customers
  • Corporate acquisition targets
  • Retailers
  • External investors
Products
  • Acquisition of izakaya brands
  • Food business management

Liquor Sales

Overview
Sells a wide range of liquors centered on group company Yamaya.
Competitiveness
Liquor distribution network and customer base
Customers
  • Restaurants
  • Liquor retailers
  • Individual customers
Products
  • Shochu
  • Sake
  • Beer
  • Wine

Training and Human Resource Development Services

Overview
Establishes human resource development systems for the food service industry to achieve high-quality customer service.
Competitiveness
Internal education facilities such as ABC Academy
Customers
  • Group store staff
  • Food service industry workers
  • Industry newcomers
Products
  • Training center operations
  • Group training programs
  • e-Learning materials

Competitive Advantage

Strengths

  • Market coverage through diverse format deployments
  • Stable capital base under Yamaya
  • Strengthened original menus per store
  • Aggressive new formats and business acquisition strategies
  • Wide deployment across all 47 prefectures
  • Human resource development via training centers
  • Regional logistics systems
  • Strong brand portfolio
  • Adaptability to diverse customer segments
  • Customer satisfaction through private rooms and services
  • Introduction of IT payment systems
  • Long industry experience and market understanding
  • Structural reforms for performance improvement
  • Expansion of yakiniku formats
  • Delegation of significant discretion to stores

Competitive Advantages

  • Cost efficiency via franchise-centered multi-store model
  • Utilization of Yamaya's liquor sales channels
  • Brand recognition of flagship seafood izakaya "Hana no Mai"
  • Flexibility for unique menu development per store
  • Response to varied customer needs across formats
  • Comprehensive training based on extensive store operation know-how
  • Ingredient freshness management via nationwide logistics
  • Rapid expansion of formats and stores via M&A
  • Management improvement measures by experienced executives
  • Enhanced customer touchpoints via online sales and IT
  • Marketing tailored to regional characteristics
  • Group synergies from integrating diverse food brands

Threats

  • Intensifying competition in food service
  • Operational restriction risks like COVID-19
  • Brand image decline from food poisoning etc.
  • Ingredient price instability
  • Rising labor costs from workforce shortages
  • Compliance risks such as insider trading
  • Population decline in local markets
  • Shifts in consumer health consciousness
  • Delays in digital transformation
  • Quality inconsistencies from store variations
  • Cost increases from stricter environmental regulations
  • Emergence of new competitors

Innovations

2023: Directly-Operated Expansion of Yakiniku Formats

Overview
Advances full directly-operated model for Yakiniku Ushiboshi to strengthen brand and improve profitability.
Impact
Increased yakiniku sales and expanded customer base

2024: Strengthened New Format Development

Overview
Launched new formats such as "Hiire Mitsu-i" and "Ryogoku Dashi Monja Monji" in Ginza, Shinjuku, and Kita-Senju.
Impact
Expanded response to diverse customer needs

2021: IT and Smartphone Payment Introduction

Overview
Introduced Alipay and LINE Pay to improve customer convenience.
Impact
Payment efficiency and customer satisfaction improvements

2020: Overseas Business Withdrawal

Overview
Withdrew from Vietnam operations to focus on domestic rebuilding.
Impact
Focused resources and loss mitigation

2022: Enhanced Sustainable Logistics

Overview
Expanded logistics centers to three locations to improve efficiency and freshness management.
Impact
Stabilized ingredient supply and cost efficiencies

2024: 40th Anniversary Menu Refresh

Overview
Refreshed existing menus and developed new items to commemorate 40th anniversary.
Impact
Improved brand recognition and store visits

2023: Business Expansion via M&A

Overview
Made Seas Life a wholly-owned subsidiary to strengthen yakiniku business.
Impact
Business diversification and strengthened revenue base

2023: Environmentally Considerate Store Operations

Overview
Introduced energy-saving equipment and reduced waste to lower environmental impact.
Impact
Cost reductions and improved environmental image

Sustainability

  • Promotion of food loss reduction programs
  • Active use of local ingredients
  • Investment in energy-saving equipment
  • Environmental education for employees
  • Creating comfortable workplaces
  • Thorough food hygiene management
  • Disaster agreements with local communities
  • Ingredient donations to food banks
  • Expanded use of recycled materials
  • Proper labor condition management