Kushikatsu Tanaka Holdings

Basic Information

Stock Code
3547
Industry
Retail
Category Detail
Restaurants
Prefecture
Tokyo
Establishment Year
March 2002
Listing Year
September 2016
Official Website
https://www.kushi-tanaka.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yakiniku Sakai Holdings, DD Group, Kaio, A&P Holdings, Chimney, Eternal Hospitality Group, SFP Holdings, Yoshix Holdings, Yamaokaya, F&L C, Watami, Hayde Hidaka, Daisho

Overview

Kushikatsu Tanaka is a kushikatsu specialty restaurant chain founded in 2002, primarily operating in the Kanto region, and is a growing company spreading the traditional Osaka kushikatsu flavor nationwide.

Current Situation

Kushikatsu Tanaka recorded sales of approximately 10 billion yen in FY2019, achieving operating profit of about 600 million yen and net profit of about 450 million yen. Centered in the Kanto region, it operates over 120 stores, offering kushikatsu as the mainstay along with other regional dishes and izakaya menus. It has adopted a holding company structure for management, spinning off the restaurant operations to improve efficiency. Although it experienced temporary closures in 2020 due to COVID-19, it maintained business continuity through takeout and delivery services. Moving forward, it plans aggressive store expansion aiming for 1,000 stores nationwide, accelerating entry into the Kansai region and local areas such as Osaka and Okinawa. It is also advancing operational efficiency through IT implementation and strengthening online sales, while continuing to deliver flavors and services supported across a wide age range. In addressing social issues, it has reinforced employee safety management and scandal prevention systems. In the long term, it is considering overseas expansion and new business formats, strengthening its corporate structure for sustainable growth.

Trivia

Interesting Facts

  • Founder Tsuneji Nuki started restaurant business individually in 1998
  • Secret kushikatsu recipe inherited from Yoei Tanaka's father
  • Succeeded in popularizing kushikatsu in cities outside Osaka
  • Gained attention through naming rights with Hiroyuki Miyasako
  • Changing room voyeurism incident revealed at company-owned and FC stores
  • Experienced temporary closure of all stores due to COVID-19
  • Launched tabletop fryer product for takeout
  • Expanded to 15 stores in Osaka by 2022
  • Introduced restaurant support app for operational efficiency
  • President and Representative Director is Hisao Sakamoto, former Shin Nihon Audit Corporation

Hidden Connections

  • Founder has background from Toyota Transportation
  • Provides franchise expansion know-how to numerous restaurant operators
  • Maximized management efficiency through transition to holding company
  • Business support app realized through joint venture with Informart
  • Hiroyuki Miyasako's promotional participation achieved via crowdfunding
  • Low ownership ratio by employee shareholders
  • Example of restaurant chain focusing on preserving and promoting local traditional cuisine

Future Outlook

Growth Drivers

  • Aggressive store opening strategy for 1,000 stores nationwide
  • Expansion of products appealing to younger demographics
  • Continued growth in takeout and delivery demand
  • Operational efficiency promotion through IT
  • Business diversification via multi-regional expansion

Strategic Goals

  • Establishment of 1,000-store network
  • Promotion of sustainable ingredient sourcing
  • Strengthening of franchise system
  • Initiation of overseas market expansion
  • Enhancement of customer experience through IT utilization

Business Segments

Franchisee Support

Overview
Provides various services to support the business success of franchisees.
Competitiveness
Powerful brand preserving traditional flavors
Customers
  • Sole proprietors
  • Small and medium enterprises
  • Restaurant owners
  • New business starters
  • Local governments
Products
  • Store development support
  • Menu development assistance
  • Marketing support
  • Store operation manual provision
  • Training services

Bulk Ingredient Supply

Overview
Supplies high-quality dedicated ingredients to stores to maintain stable quality.
Competitiveness
Consistent quality control and stable supply system
Customers
  • Company-owned stores
  • Franchise stores
  • Other restaurant chains
  • Wholesalers
Products
  • Kushikatsu ingredients
  • Condiments
  • Beverages
  • Processed foods

Store Operation System Provision

Overview
Provides IT solutions to promote operational efficiency in restaurants.
Competitiveness
Flexible IT services tailored to the restaurant industry
Customers
  • Company-owned stores
  • Franchise stores
  • Restaurant chains
Products
  • POS system
  • Business support app
  • Process visualization tools

Advertising and Promotion Support

Overview
Deploys advertising services to enhance brand image and attract customers.
Competitiveness
Effective rollout leveraging Kushikatsu Tanaka's recognition
Customers
  • Franchisees
  • Restaurant-related companies
  • Event organizers
Products
  • Advertising planning
  • Marketing support
  • Campaign planning

Product Development Support

Overview
Supports new product development and improvements to existing menus.
Competitiveness
Fusion of traditional recipes and market data
Customers
  • Franchisees
  • Manufacturers
Products
  • Menu product planning
  • Taste testing
  • Ingredient proposals

Competitive Advantage

Strengths

  • Reproduces traditional Osaka kushikatsu flavors
  • Stable store network centered in Kanto
  • Strong brand image
  • Efficient management via holding company structure
  • Broad customer base through diverse menu offerings

Competitive Advantages

  • Growth strategy aiming for 1,000 stores nationwide
  • Franchise support and know-how provision
  • Pricing and products appealing to younger demographics
  • Operational efficiency through IT implementation
  • Risk diversification via multi-regional expansion

Threats

  • Social changes such as COVID-19
  • Intensifying competition in the restaurant industry
  • Brand risks from employee misconduct
  • Fluctuations in ingredient prices
  • Store operation challenges due to labor shortages

Innovations

2021: Launched home-use tabletop fryer

Overview
Began mail-order sales of tabletop fryers and frozen kushikatsu sets for home use.
Impact
Opened up new demand for home kushikatsu consumption

2022: Launched V-Manage business support app

Overview
Collaborated with joint venture Restartz to release an app for visualizing restaurant business processes.
Impact
Achieved improved efficiency and quality in store operations

2020: Strengthened takeout and delivery services

Overview
Expanded takeout and delivery in response to COVID-19 impact.
Impact
Contributed to maintaining certain performance levels

2020: Generated buzz through naming rights acquisition

Overview
Limited-time operation of 'Kushikatsu Miyasako' by Hiroyuki Miyasako to boost recognition.
Impact
Enhanced brand image and increased foot traffic

Sustainability

  • Strengthened employee hygiene management
  • Promoted store environmental beautification
  • Enhanced collaboration with local communities
  • Exploring sustainable ingredient sourcing
  • Advancing improvements in working environment