Fujita Corporation

Basic Information

Stock Code: 3370
Industry: Retail Industry
Category Detail: Restaurants
Prefecture: Hokkaido
Establishment Year: March 1978
Listing Year: April 2005
Official Website: http://www.fujitacorp.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Japan McDonald's Holdings, J Escom, Atra G, Marche, Moss Food Service

Overview

Fujita Corporation is a major franchisee company founded in 1978, primarily operating fast food and restaurant stores centered in Hokkaido.

Current Situation

Fujita Corporation operates franchise stores of multiple famous brands mainly in Hokkaido, Tohoku, and Kanto, achieving sales of approximately 4.7 billion yen in 2017. In its core fast food and restaurant business, it develops stores for prominent brands like Mister Donut and Moss Burger, while its proprietary brand 'Katsuten' has taken root in the region. After falling into negative net worth in 2015, it recovered through capital tie-ups with Asraport Dining and Duskin, and is now advancing financial structure improvements. It is actively pursuing new franchise contracts to expand the number of stores across diverse dining chains. Through region-focused management and brand diversification, it differentiates from competitors while establishing a growth base. Going forward, it plans to further strengthen its business foundation and continue store development that reflects customer needs.

Trivia

Interesting Facts

Started as Family Foods Co., Ltd. at founding
Tomakomai Moss Burger store holds record for highest Moss Chicken Christmas campaign sales nationwide
Katsuten is a popular donburi specialty brand rooted in Hokkaido
Strengthened business base through capital and business alliances with Duskin and Asraport Dining
Diversified operations including complex cafe management of Space Create Jiyū Kūkan
Transferred recycle shop business BOOK・NET・ONE to Umiaka Holdings
Many stores located in local commercial facilities and Aeon Malls
Operates Docomo Shop sales agency in Hokkaido
Commissioned lottery sales agency from Mizuho Bank
Achieved business reconstruction through capital alliance after negative net worth in 2015

Hidden Connections

Completely independent company with no capital or personnel ties to Fujita Construction
Asraport Dining provides management support as the lead shareholder
Capital alliance with Duskin to create synergies in fields separate from cleaning supplies
Strengthens young customer attraction through regional complex cafe operations
Exclusively operates franchise rights for multiple food service chains in central Hokkaido
Previously operated recycle shop business transferred to Umiaka Holdings
Recognized in Hokkaido business community as a region-rooted mid-sized company
Coexists with competitor Moss Food Service through franchise agreement

Future Outlook

Growth Drivers

Strengthening customer base through region-rooted store expansion
Market share expansion via multi-brand rollout
Advancement of digital transformation
Proactive response to sustainable management
Challenges in new formats and service models
Flexible response to diversifying consumer needs
Enhancement of combined dining and leisure services
Synergy creation through deeper collaboration with capital alliance partners
Intensified development of health-oriented menus
Improved profitability through store operation efficiency

Strategic Goals

50% increase in franchise stores in Hokkaido and Tohoku regions
National rollout start for original brand Katsuten
Advanced customer experience via digital initiatives
Achievement of environmental reduction targets and CSR expansion
Establishment of new business revenue ratio over 20%
Realization of 90%+ employee satisfaction
Advancement of initiatives for deeper coexistence with local communities
Expansion and diversification of complex cafe business
Business base strengthening through collaboration with capital partners
Maintenance of sound financial structure and enriched dividend policy

Business Segments

Franchise Operation Support

Overview

Supports store operations for diverse restaurants as a franchisee.

Competitiveness

Abundant brands and region-rooted operation expertise

Customers

Franchise Headquarters
New Franchise Stores
Existing Franchise Stores

Products

Store Operation Support
Training Programs
Marketing Support

Original Dining Brand Development

Overview

Plans and operates dining stores under proprietary brands.

Competitiveness

Original menu development leveraging regional characteristics

Customers

General Consumers
Local Commercial Facilities

Products

Katsuten
CAFE Sta

Complex Cafe Operations

Overview

Operates complex facilities featuring entertainment and cafe services.

Competitiveness

Services rooted in the local community

Customers

General Consumers
Family Segments

Products

Space Create Jiyū Kūkan

Mobile Phone Sales Agency

Overview

Conducts sales agency operations for Docomo Shops.

Competitiveness

Region-rooted sales network

Customers

NTT Docomo
Mobile Users

Products

Mobile Phone Sales
After-Sales Service

Lottery Sales Agency

Overview

Handles lottery sales and related commissioned operations.

Competitiveness

Reliable customer service system

Customers

Mizuho Bank
General Consumers

Products

Lottery Sales
Related Administrative Services

Competitive Advantage

Strengths

Possesses diverse dining franchise brands
Expertise in region-rooted store expansion
Succeeded in financial improvement and stable management base
Rich customer network and brand recognition
Operational efficiency from multi-store expansion
Collaboration with strong capital alliance partners
Differentiation through original brands
Comprehensive franchise store support system
Diversification of food services
Brand expansion responding to customer demand
Focus on new formats like complex cafes
Diversified business including mobile sales and lottery agency
Credibility from long industry experience
Stable fundraising capabilities
Corporate culture emphasizing customer service

Competitive Advantages

Mega-franchisee for famous brands like Mister Donut and Moss Burger in central Hokkaido
Regional recognition and customer base for original brand 'Katsuten'
Financial stability and management expertise gained through capital tie-ups with Asraport Dining and Duskin
Efficient operations management across multiple brands
Differentiation from competitors via region-rooted sales expansion
Record of highest Moss Chicken Christmas sales in Japan at Tomakomai Moss Burger store
Flexibility to respond to diverse dining formats and regional needs
Risk diversification through both directly operated and franchise stores
Strong regional sales network and customer support system
Easy brand power enhancement due to abundant store count

Threats

Risk of market share decline due to intensifying food service competition
Sharp drop in dining demand from pandemics like COVID-19
Cost pressures from rising ingredient prices and labor costs
Risks of franchise contract renewals or terminations
Decreased consumer spending due to regional economic fluctuations
Customer outflow from competitors' strengthened brand strategies
Shift away from fast food due to health trends
Rise of online delivery services
Increased burdens from regulatory tightening (labor laws, hygiene management, etc.)
Risk of store damage and closures from natural disasters

Innovations

2023: New Original Brand Menu Development

Overview: Introduced new katsudon menu tailored to local preferences to improve customer satisfaction.
Impact: Contributes to higher repeat rate for existing customers and acquisition of new ones

2022: Digital Ordering System Introduction

Overview: Implemented smartphone-based ordering system for stores to enhance convenience.
Impact: Achieved improvements in ordering efficiency and customer satisfaction

2021: Switch to Eco-Friendly Packaging Materials

Overview: Began introducing environmentally considerate packaging materials in some stores to reduce plastics.
Impact: Contributes to improved corporate image through CSR activities

2024: Food Loss Reduction Program Launch

Overview: Initiated efforts to reuse unsold food and reduce waste at stores.
Impact: Effective in cutting disposal costs and reducing environmental impact

Sustainability

Gradual reduction of plastic packaging and promotion of alternative materials
Active use of local ingredients to revitalize regional economy
Store energy efficiency improvements and LED lighting installation
Internal education and thorough operations for food loss reduction
Initiatives to enhance employee diversity and work-life balance