Runsystem

Basic Information

Stock Code
3326
Industry
Service Industry
Category Detail
Leisure & Recreation Facilities
Prefecture
Tokyo
Establishment Year
December 1988
Listing Year
June 2004
Official Website
https://www.runsystem.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Infant Activity Research, ASJ, Wedge HD, Tetsujin Inc. Holdings, All About, Horii Food Service, SLD, J Esccom, Kubotec, Uematsu Shokai

Overview

Runsystem is a leading company in the complex cafe industry, founded in 1988. Centered around the membership-based complex cafe 'Space Create Jiyū Space,' it has expanded nationwide and established a unique market position through technological development and diverse store formats.

Current Situation

In the fiscal year ending June 2024, Runsystem recorded consolidated net sales of approximately 7.37 billion yen and operating profit of approximately 127 million yen. It operates 92 stores nationwide, centered on the complex cafe 'Space Create Jiyū Space.' The core store business has improved customer management efficiency through the introduction of a membership system and differentiates itself with diverse services and concept rooms. It is strengthening group expansion through subsidiaries like Run Wellness and Run Second, while promoting subscription-type services and online integration. Since 2022, it has become a subsidiary of AOKI Holdings, strengthening its financial base and renewing its management structure. For sustainability, it is addressing environmental burden reduction and community contributions, along with store equipment improvements and cashless payment introductions. Moving forward, it aims to expand its customer base and store numbers, focusing on new business formats and DX initiatives for growth from 2025 onward. Although the competitive environment is harsh, it seeks mid- to long-term market share expansion by leveraging proprietary technologies and its franchise network.

Trivia

Interesting Facts

  • Business started in 1985 as a personally operated rental record store.
  • Operates 92 stores from Hokkaido to Okinawa nationwide.
  • Membership cards are usable nationwide at most stores.
  • The Moopa! store in Kabukicho, Shinjuku, was later integrated into Jiyū Space.
  • Previous credit card partnerships ended in 2007.
  • Stores feature concept rooms linked with manga and games.
  • Aims for stable management as a subsidiary of AOKI Holdings.
  • Actively utilizes store and business transfers in regional cities.
  • Aggressively pursues tie-ups with online games.
  • High customer repeat rate due to membership system introduction.
  • Maintains top-class recognition and share in the complex cafe industry.
  • Promotes business expansion by selling proprietary systems to other industries.
  • Expands demand through senior-oriented services.
  • Introduces showers and auto-lock women-only areas in store facilities.
  • Deploys community-focused stores through collaborations with local companies.

Hidden Connections

  • Capital alliance with AOKI Holdings has strengthened ties with the apparel industry.
  • Contributes to local economies through franchise contracts with local companies.
  • Expands customer base through promotions linked with the gaming industry.
  • Rival Kaikatsu CLUB in the same industry is a competing subsidiary of parent AOKI Holdings.
  • Proprietary systems are highly evaluated in the industry and successfully sold to other companies.
  • Nationwide common use of membership cards is part of customer retention strategy.
  • Many franchisees were former game center operators.
  • Some stores are often co-located with local commercial facilities or hotels.

Future Outlook

Growth Drivers

  • Nationwide expansion of demand for membership complex cafes
  • Improved convenience from spread of cashless payments
  • Active collaborations with anime and game content
  • Senior market development and customized services
  • Store count increase through franchise expansion
  • Business efficiency and customer management enhancement via DX
  • Development of new formats and entry into lodging market
  • Social demand for environmentally considerate store operations
  • Customer base strengthening through community-focused strategies
  • Utilization of group financial strength for new investments
  • Strengthened integration with online services
  • Employee skill improvement and organizational strengthening

Strategic Goals

  • Build a nationwide network of 200 stores and strengthen franchises
  • Achieve over 90% cashless payment ratio
  • Significantly reduce store environmental impact and achieve SDGs
  • Exceed 15 billion yen in annual sales through diversification
  • Expand new format business to over 20% of sales ratio
  • Capture top industry market share in senior business
  • Grow external sales of proprietary systems to domestic top class
  • Strengthen positioning as comprehensive leisure company within AOKI Group
  • Maximize customer acquisition through digital marketing
  • Gain top-class industry evaluation for employee diversity and work-life balance

Business Segments

Store Operation Support Software Sales

Overview
Diversifies business and creates revenue base through sales of proprietary developed systems.
Competitiveness
Customization capabilities based on complex cafe expertise
Customers
  • Complex Cafe Operators
  • Entertainment Facilities
  • Karaoke Chains
  • Restaurant Chains
Products
  • Membership System
  • POS System
  • Entry/Exit Management System
  • Food Order System

Franchise Support

Overview
Provides support and management services to franchise stores.
Competitiveness
Extensive franchisee network
Customers
  • Franchise Franchisees
  • Store Owners
Products
  • Store Management
  • Business Efficiency Support
  • Sales Promotion Tools

Food Menu Development and Supply

Overview
Handles planning and quality control for in-store food and beverages.
Competitiveness
Product development linked to store operations
Customers
  • Directly Managed Store Division
  • Franchise Stores
Products
  • Light Meal Menus
  • Drinks
  • Karaoke-Oriented Food and Beverages

Marketing and Promotion

Overview
Multi-faceted marketing support to attract customers.
Competitiveness
High brand recognition within the industry
Customers
  • Complex Cafe Business Division
  • Franchise Business
Products
  • Advertising Campaigns
  • Event Planning
  • Customer Analysis

New Business Format Development and Operations

Overview
Develops and operates new formats like capsule hotel-integrated stores.
Competitiveness
Utilization of complex cafe know-how
Customers
  • Own Stores
  • External Partners
Products
  • Capsule Hotel
  • Manga Cafe
  • Relaxation Services

IT Infrastructure Services

Overview
Provides IT infrastructure necessary for store operations.
Competitiveness
System design compatible with multi-store expansion
Customers
  • All Store Operations
  • For Franchisees
Products
  • Wi-Fi Environment Setup
  • Payment System Introduction
  • Security Services

Customer Membership Management Services

Overview
Provides systems to enhance customer loyalty.
Competitiveness
Nationwide common membership system
Customers
  • Own Stores
  • Franchise Stores
Products
  • Membership Enrollment/Withdrawal System
  • Points System
  • Smartphone App Compatibility

Business Outsourcing and Transfers

Overview
Implements franchise conversion of directly managed stores and outsourced operations.
Competitiveness
Flexible business expansion capabilities
Customers
  • Local Operators
  • Franchise Chains
Products
  • Store Operation Rights
  • Business Rights Transfers

Education and Training Services

Overview
Education programs aimed at improving staff skills.
Competitiveness
Training content tailored to practical operations
Customers
  • Store Staff
  • Franchise Owners
Products
  • Service Manners Training
  • Store Operation Training
  • System Operation Training

Food Menu Development Support

Overview
Supports food menu development and quality maintenance.
Competitiveness
Practical proposals based on store operation experience
Customers
  • External Restaurants
  • Store Operation Teams
Products
  • Menu Planning
  • Cooking Guidance
  • Quality Management System

Customer-Facing Promotional Tool Provision

Overview
Develops various promotional tools to attract customers.
Competitiveness
Effective tools based on customer analysis
Customers
  • Franchise Stores
  • Own Stores
Products
  • Coupon Issuance System
  • Points Management
  • Campaign Planning

Collaboration Planning and Tie-Up Business

Overview
Deploys customer attraction measures linked with content.
Competitiveness
Diverse planning capabilities and track record
Customers
  • Game Companies
  • Anime Production Companies
  • Advertising Agencies
Products
  • Event Planning
  • Limited Room Operations
  • Collaboration Goods Sales

Competitive Advantage

Strengths

  • Nationwide franchise network
  • Customer repeat business secured through membership system
  • Store expansion offering diverse services
  • Operational efficiency via proprietary developed systems
  • Financial strength as part of AOKI Group
  • Differentiation measures like concept rooms
  • Flexible business transfer and outsourced operation structure
  • Know-how from extensive industry experience
  • Market penetration through multiple brands
  • Comprehensive cashless payment compatibility
  • Adoption of diverse payment methods
  • High recognition in leisure and entertainment fields
  • Expansion of senior-oriented services
  • Strengthened collaboration with online games
  • Stable funding base

Competitive Advantages

  • Built a network of 92 directly managed and franchise stores nationwide
  • Thorough customer management via membership and proprietary systems
  • Achieves differentiation through collaborations with anime and games
  • One-stop provision of diverse food and entertainment services
  • Resilient to economic fluctuations due to diversified revenue structure
  • High customizability of proprietary POS and membership systems
  • Business expansion strategy utilizing group subsidiaries
  • Enhanced customer convenience with diverse payment options
  • Innovative store expansions like new format 'Comicap'
  • Improved credibility as subsidiary of AOKI Holdings
  • Differentiation from competitors through integration of diverse formats
  • Strength from linkage of technology development and marketing
  • New market development targeting seniors
  • Brand power backed by rich industry history
  • Strong organizational structure flexible in business transfers

Threats

  • Intensifying price competition from rivals
  • Risk of reduced usage due to COVID-19 or infectious diseases
  • Variability in operational quality among franchise stores
  • Emergence of new entertainment content and digital services
  • Unstable customer traffic at local stores
  • Rising pressure from labor and real estate costs
  • Diversification of usage patterns due to changing consumer behavior
  • Opportunity loss from delays in cashless payment introduction
  • Potential for stricter regulations or operating hour restrictions
  • Vulnerability to overall industry economic trends
  • Risks of import issues or troubles related to copyrights
  • Competitive relationships within AOKI Group businesses

Innovations

2023: Expansion of New Format 'Comicap'

Overview
Launched a new format fusing capsule hotels and complex cafes at the Kyoto Shinkyogoku store.
Impact
Acquired new customer segments by entering the lodging market

2022: Complete Renewal of Membership System

Overview
Introduced a membership management system enhanced with smartphone app integration and cashless payments.
Impact
Improved customer convenience and maximized promotional effects

2024: Promotion of Cashless Payment Diversification

Overview
Significantly increased store adoption rates for transportation IC and QR code payments.
Impact
Enhanced customer convenience and improved payment speed

2021: Strengthening of Franchise Network

Overview
Developed operation support tools and education programs for FC franchisees.
Impact
Contributed to improved operational quality at franchise stores

2023: Provision of Online Game Collaboration Services

Overview
Installed dedicated concept rooms through tie-up with popular game Dragon Quest X.
Impact
Successfully increased attraction of game users

2020: Store Design for Environmental Burden Reduction

Overview
Began store renewals incorporating energy-saving equipment and eco-materials.
Impact
Achieved reduction in environmental impact and improved corporate image

Sustainability

  • Introduction of energy-saving equipment and LED lighting
  • Proper inventory management to reduce food waste
  • Local cleanup activities and community contribution events
  • Paperless promotion through cashless payments
  • Promotion of employment for people with disabilities and respect for diversity in the workplace
  • Promotion of recycled materials use and waste reduction
  • Enhancement of employee health management programs
  • Environmentally considerate store design and contributions to a circular society
  • Provision of resource-saving products and packaging reduction
  • Raising sustainability awareness through customer PR activities
  • Regional revitalization through promotion of local products
  • Active promotion of green procurement