Flying Garden

Basic Information

Stock Code
3317
Industry
Retail
Category Detail
Restaurants
Prefecture
Tochigi Prefecture
Establishment Year
December 1981
Listing Year
March 2004
Official Website
http://www.fgarden.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hip, Carla, Skylark Holdings, MK System, Zensho Holdings, Saizeriya, Royal Holdings, Joyfull

Overview

Flying Garden is a family restaurant chain founded in 1981, mainly operating in the northern Kanto region, providing community-oriented dining services centered on its signature product, the 'Bomb Hamburger'.

Current Situation

Flying Garden recorded net sales of approximately 6 billion yen and net profit of approximately 110 million yen in the fiscal year ended March 2021, operating 58 stores mainly in northern Kanto. Its flagship Bomb Hamburger accounts for about 45% of sales, building a regionally rooted brand with its unique cooking method. In recent years, it has focused on store renovations and service improvements, such as introducing call buttons and drink bars to enhance customer satisfaction. The establishment of its own factory has improved quality control and production efficiency. Since 2020, it has launched a new takeout-only store format, but new store openings are being restrained. It has experience exploring the Tohoku market through a license agreement with Kourakuen. Looking ahead, it aims for 100 stores and 10 billion yen in sales, pursuing transformation into community-oriented specialty stores while seeking sustainable growth.

Trivia

Interesting Facts

  • Bomb Hamburger uses a unique method allowing doneness adjustment at the table
  • Store call buttons were introduced based on customer requests
  • Used the name 'Flying Tiger' until the 1990s
  • Own factory construction significantly strengthened quality control and production capacity
  • Has a unique system mandating cooking certifications for employees
  • Bomb Hamburger made from 100% ground beef without binders
  • Tohoku expansion temporarily achieved through partnership with Kourakuen
  • Product name 'Bomb' inspired by rising smoke
  • President is the founder's son, continuing family management
  • Strong customer support as a regional chain in northern Kanto
  • Advancing toward specialty store model while being a family restaurant
  • Used as a filming location for movies and dramas
  • Takeout format gained attention during the pandemic
  • Monthly ticket half-price refund fair continued for 25 years but ended in 2020
  • Stores emphasize roadside locations for high visibility

Hidden Connections

  • Contributes to forming regional food culture with strong ties to local communities
  • Acquired know-how for Tohoku expansion through partnership with Kourakuen
  • Some overlap in ingredient procurement and logistics with competitors like Zensho and Skylark
  • Founder was one of the introducers of U.S.-style suburban restaurant formats
  • Achieves differentiation from major chains through community-oriented strategy
  • Corporate brand collaborates with celebrities and media to boost recognition
  • Has developed products partially addressing local senior needs
  • Business succession and growth strategy consistency maintained through president transition

Future Outlook

Growth Drivers

  • Store expansion leveraging community strengths
  • Market expansion of new formats and takeout specialty stores
  • Improved repeat rate through customer service enhancements
  • Brand trust improvement via strengthened quality control
  • Customer attraction through seasonal and limited menus
  • Business efficiency and marketing via IT utilization
  • Development and response to senior needs with targeted menus
  • Social recognition through environmental and sustainability initiatives
  • Brand awareness via regional event collaborations
  • Strengthening and expansion of customer base in operating areas

Strategic Goals

  • Achieve 100 stores for market share expansion
  • Secure stable revenue exceeding 10 billion yen
  • Build management system considering sustainability
  • Establish position as a community-rooted dining brand
  • Strengthen customer touchpoints and service innovation via IT
  • Enhance product development to meet diverse customer needs
  • Acquire broad customer base including seniors
  • New market development through external partnerships and collaborations
  • Full utilization of digital marketing
  • Sustainable talent development and organizational strengthening

Business Segments

Ingredient Supply to Restaurants

Overview
Provides quality-controlled exclusive ingredients to restaurants from Hokkaido to Kyushu.
Competitiveness
Quality control through in-house factory production
Customers
  • Flying Garden directly operated stores
  • Flying Garden group company stores
  • Food processing retailers
  • Local catering companies
  • Other restaurant chains
Products
  • Beef raw materials for Bomb Hamburgers
  • Processed meat products
  • Seasonings and exclusive sauces
  • Frozen prepared foods
  • Bulk ingredients

Food Service Solutions

Overview
Supports efficient business expansion through solutions that underpin store operations.
Competitiveness
Advanced know-how from years of chain store operations
Customers
  • Franchise stores
  • Individual restaurant owners
  • Food logistics companies
  • Catering companies
Products
  • Restaurant operation know-how
  • Staff training programs
  • Store design and renovation support

New Business Format Development Support

Overview
Engages in planning, development, and launch support for new business format stores.
Competitiveness
Menu design tailored to regional needs
Customers
  • Takeout specialty store operators
  • Local restaurant operators
  • Small and medium food manufacturers
Products
  • Menu development support
  • Cooking technique training
  • Marketing strategies

Food Manufacturing Outsourcing

Overview
Undertakes high-quality bulk food manufacturing using its own factory.
Competitiveness
Strict quality control system
Customers
  • Restaurant companies
  • Food wholesalers
  • Local government events
Products
  • Bulk processed meat products
  • Frozen prepared food manufacturing
  • Event food provision

Regional Events and Promotions

Overview
Provides event support to foster ties with the local community.
Competitiveness
Local store network
Customers
  • Local governments
  • Chambers of commerce
  • Tourism associations
Products
  • Food stall operations
  • Product promotions
  • Regional event sponsorships

Competitive Advantage

Strengths

  • Community-oriented store expansion
  • Unique Bomb Hamburger recipe
  • Quality control via own factory
  • Abundant stores and accumulated know-how
  • Customer service enhancement initiatives
  • High recognition of signature menu
  • Solid financial base
  • Rapid store renewals
  • Improved cooking skills through staff certification system
  • Customer-facing innovations like call buttons
  • Long-term customer support
  • Roadside strategy in rural areas
  • Differentiation through diverse sauces
  • Track record of regional event collaborations
  • Exploration of takeout business

Competitive Advantages

  • Solid store network and community-oriented management centered in northern Kanto
  • Successful differentiation with high-brand-power Bomb Hamburger
  • Quality control and cost management through owned factory
  • Cooking methods and service styles tailored to customer preferences
  • Continuous store renovations and service improvements for sustainability
  • Diversification of products and store formats to meet regional needs
  • Stable profitable operations and financial soundness
  • Maintained service quality through staff training and certification
  • Exploration and rollout of new formats like takeout specialty stores
  • Secured customer base through long history and trust
  • Brand penetration via regional event participation
  • Improved customer satisfaction through multiple differentiated sauces and menus
  • Enhanced convenience with customer call button introduction
  • Experience with external collaborations via packaging and licensing agreements
  • Prevention of boredom through limited and seasonal menu development

Threats

  • Impact of COVID-19 on the dining industry
  • Intensifying price competition from rival chains
  • Risks from population decline and regional economic stagnation
  • Rising raw material costs and procurement expenses
  • Increased operating costs due to labor shortages
  • Changes in consumer preferences and growing health consciousness
  • Growth limitations from restrained new store openings
  • Risk of store closures due to disasters
  • Stricter legal regulations and hygiene standards
  • Customer acquisition by competitors' new formats and IT utilization
  • Market expansion limits due to regional focus
  • Impact from fluctuations in takeout demand

Innovations

2023: Own Factory Production of Bomb Hamburgers Starts for All Stores

Overview
Manufacturing at own factory since 2013 to strengthen quality control, providing high-quality products in stores.
Impact
Uniform quality and significant production efficiency improvements

2020: Takeout Specialty Store 'Fraga Delica' Opens

Overview
Opened a takeout specialty store in Kiryu City, entering a new business format.
Impact
Creation of new sales channels

2020: Customer Call Buttons Installed in All Stores

Overview
Installed call buttons in all stores to improve service efficiency and customer satisfaction.
Impact
Improved customer service quality

2021: New Sauces Developed for Bomb Hamburger

Overview
Diversified with cheese sauce, mountain wasabi sauce, etc., to meet diverse taste preferences.
Impact
Enhanced customer satisfaction and repeat visits

2022: Store Renewals and Interior Updates Advanced

Overview
Promoting specialty store transformation with teppan logo items and larger tables.
Impact
Strengthened brand image

2023: Business Efficiency Improvements via IT Systems

Overview
Improved customer management and reservation systems, strengthened employee training programs.
Impact
Store operation efficiency and service quality improvements

2021: Introduction of Shortened Hours for COVID-19 Response

Overview
Implemented shortened hours and thorough hygiene management to ensure safe operations.
Impact
Ensured reassurance for customers and staff

2024: Eco-Friendly Packaging Introduction Plan

Overview
Reviewing and reducing packaging materials to lower environmental impact.
Impact
Strengthened sustainability

2023: Enhanced Menu Options for Seniors

Overview
Considering revival of small hamburgers and developing new products for senior customers.
Impact
Development of new customer segments

2023: Digitalization of Advertising and Promotion

Overview
Strengthening brand awareness and information dissemination centered on SNS.
Impact
Increased brand exposure to younger demographics

Sustainability

  • Energy reduction through shortened store hours
  • Promotion of eco-friendly containers and packaging
  • Community contributions via active regional event participation
  • Food loss reduction programs
  • Enhanced employee health and safety management
  • Promotion of waste recycling
  • Social responsibility through regional employment promotion
  • Active use of local agricultural products
  • Hygiene improvement activities including customer education
  • Beautification activities around business locations