Alfax Food System

Basic Information

Stock Code
3814
Industry
Information and Communications Industry
Category Detail
Systems & Software
Prefecture
Yamaguchi Prefecture
Establishment Year
December 1993
Listing Year
September 2006
Official Website
https://www.afs.co.jp/
TSE Information
TSE Information
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Other Companies
Proship, J Escom, eBASE, Avantage Group, Colabos, Money Forward, freee, Oracle Japan, Obic Business Consultants, Washin, PCA, TKC, Miroku Information Service

Overview

Alfax Food System was established in 1993 and is a pioneer in information systems for the food service industry, serving as Japan's largest dedicated software manufacturer.

Current Situation

Alfax Food System recorded net sales of approximately ¥2.2 billion and operating profit of approximately ¥300 million in the fiscal year ended September 2019, maintaining a stable revenue base. Its flagship restaurant management system holds the largest scale in Japan, and it has obtained a patent for the world's first automatic ordering system for the food service industry. Through cloud services deployed via ASP, it has built a support network across 319 locations nationwide. It has also entered the field of energy cost reduction, such as commercial electric boilers, to promote diversification. Since 2020, it has focused on introducing advanced technologies like serving AI robots, sustaining performance even amid the COVID-19 crisis. In 2021, the founder transitioned to chairman, refreshing the management structure. Placing DX promotion in the food service industry at the center of its strategy for sustainable growth, it aims to expand market share and technological innovation both domestically and internationally.

Trivia

Interesting Facts

  • Developer of the world's first food service dedicated automatic ordering system
  • Started Japan's first data center service in 1995
  • Largest scale in food service dedicated POS system field
  • Serving AI robots adopted as teaching materials in Japanese junior high schools
  • Earliest in industry to implement cloud via ASP method
  • 319-location nationwide maintenance network is industry largest
  • Rare example of independent startup via MBO led by founder
  • Providing specialized IT products for food service industry for over 30 years
  • Unique history of owning Natural Green Park Hotel
  • Realized heavy oil boiler removal with commercial electric boilers
  • Provided free reservation system for restaurant DX during COVID-19
  • Numerous joint products for food service cases in partnership with Glory
  • Developer of world's first real-time banquet reception service R2
  • Promoting generalization of Android tablet order terminals
  • Possesses network of diverse restaurant genres

Hidden Connections

  • Established joint venture with Photon Communications to strengthen sales capabilities
  • Business partner Glory is a major automatic change dispenser company
  • Has history of court-ordered representative dismissal
  • Operator of Japan's first off-grid data center
  • Pioneer involved from the dawn of Japan's food service industry DX
  • Restaurant management system patent is world-class first
  • Aiming to develop new markets with karaoke industry services
  • Technology-leading company headquartered in a regional city in Yamaguchi Prefecture

Future Outlook

Growth Drivers

  • Expansion of DX promotion needs in food service industry
  • Acceleration of AI and robot technology adoption in stores
  • Recovery of food service industry post-COVID and increased equipment investment
  • Promotion of ASP cloud service adoption
  • Growth of electric boilers due to increasing energy-saving needs in hotel industry
  • Development of diverse sales channels and customer base expansion
  • Enhanced product competitiveness through strengthened partnership with Glory
  • Promotion of IT adoption subsidies for small and medium restaurants
  • Advancement of customer management and marketing tools
  • Brand enhancement as a technology company in regional cities

Strategic Goals

  • Expand food service information system market share domestically and internationally
  • Achieve over 30% adoption rate for serving AI robots
  • Promote nationwide hotel adoption of energy efficiency products
  • Strengthen product development considering sustainability
  • Promote penetration of DX services to all restaurants
  • Further enhance functions and multilingualize ASP cloud products
  • Increase repeat customers through improved customer experience
  • Strengthen collaboration with local communities and support SDGs achievement
  • Overseas market entry and acquisition of global projects
  • Standardize industry-first electronic payment and automatic change dispenser systems

Business Segments

Food Service Industry Information Systems

Overview
Provides information systems such as POS, ordering systems, and robots centered on the food service industry.
Competitiveness
Broad product lineup specialized for the food service industry and nationwide support at 319 locations
Customers
  • Restaurant chains
  • Restaurants
  • Food service companies
  • Theme park dining management
  • Hotels and ryokans
  • Karaoke facilities
  • School cafeteria facilities
  • Hospitals and nursing homes
Products
  • Restaurant management system
  • Automatic ordering system
  • POS system
  • Order Shot
  • Table Shot
  • Self Shot
  • Serving AI robot
  • Marketing tools
  • Attendance aggregation management system
  • Ticket vending machine online analysis

Energy Cost Reduction Business

Overview
Supports energy reduction by enabling removal of heavy oil boilers with electric boilers.
Competitiveness
Achieves both food waste reduction and energy efficiency
Customers
  • Hotel industry
  • Large dining facilities
  • Facility management companies
Products
  • Commercial electric boilers

Competitive Advantage

Strengths

  • High level of expertise specialized in the food service industry domain
  • Japan's largest dedicated software manufacturer
  • Abundant lineup of core business system products
  • Nationwide maintenance network at 319 locations
  • Patent for the world's first proprietary automatic ordering system
  • Introduction of cutting-edge technology through serving AI robot development
  • Stable operation via ASP cloud services
  • Long years of industry experience and customer network
  • Products compatible with a wide range of food service-related equipment
  • Entry into energy cost reduction business for the hotel industry
  • Effective use of real-time reservation management system
  • Rapid new product development and market launch capabilities
  • High customer satisfaction and repeat rate
  • High customization responsiveness
  • Ongoing technology investment and R&D structure

Competitive Advantages

  • Product development specialized for the food service industry is more advanced than competitors
  • Achieves efficiency with patented automatic ordering system
  • Rapid response through nationwide maintenance service network
  • Actively promotes technological innovation such as serving AI robots
  • Established customer base through early launch of ASP cloud services
  • Enables integration of different POS models via POS proxy data collection service
  • Improves customer convenience with real-time reservation service
  • Differentiation through development and patenting of infection control products
  • Business expansion across a wide range of food service-related fields
  • Development capabilities for proprietary technologies in energy reduction business
  • Supports store operation efficiency with marketing tool integration
  • Rich track record of adoption in large theme parks and other major facilities
  • Pioneering track record in full DX models for stores
  • Customization to meet diverse restaurant needs
  • Strong management structure centered on the founder

Threats

  • Intensifying competition due to rapid technological innovation in the IT industry
  • Risk of demand decline due to fluctuations in the food service industry
  • Expansion of entry into the food service industry by large competing IT companies
  • Price competition pressure from emerging cloud services
  • Performance instability due to prolonged COVID-19 situation
  • Potential for patent disputes or intellectual property issues
  • Increasing cyber security risks
  • Constraints on service structure due to labor shortages
  • Increased business costs from regulatory tightening or legal amendments
  • Impact on business from energy market fluctuations
  • Customer tendency to restrain IT investments
  • Decline in competitiveness due to delays in DX promotion

Innovations

2022: Major function expansion for serving AI robot 'Service Shot'

Overview
Evolved AI control functions for autonomous walking serving robots to achieve compatibility with diverse stores.
Impact
20% improvement in store operation efficiency and labor cost reduction

2021: Release of self-checkout register for karaoke industry

Overview
Developed automated settlement system for entertainment facilities beyond restaurants.
Impact
开拓 of new fields and expansion of sales channels

2020: Serving AI robot 'Service Shot' lineup expanded to model 7

Overview
Diversified product lineup for serving robots and accelerated market introduction.
Impact
Improved customer satisfaction and increased new orders

2020: Obtained patent for proprietary self-checkout register

Overview
Obtained industry-first patent for self-checkout settlement method.
Impact
Strengthened differentiation from competitors

2020: Release of infection control product 'Virus Gate Shot'

Overview
Resumed sales of products for sterilization and infection prevention in response to COVID-19.
Impact
Acquired new customer segments and contributed to society

2020: Launch of free takeout and delivery reservation system

Overview
Implemented free provision to support food service amid COVID-19 impact.
Impact
Maintained customer base and enhanced brand recognition

2020: Broke ground on off-grid data center construction

Overview
Began installation of proprietary power data center independent of utility transmission lines.
Impact
Strengthened energy-saving and stable operation infrastructure

2020: Joint development of food service self-checkout with Glory

Overview
Commercialized advanced self-checkout 'Self Shot' through business partnership.
Impact
Strengthened sales network and expanded sales

2022: Global release of attendance aggregation system 'Timely'

Overview
Global rollout of multilingual cloud attendance management system.
Impact
Accelerated overseas market entry

2021: Selected as IT Introduction Subsidy supporter

Overview
Restaurant management system certified as IT subsidy target tool.
Impact
Promoted sales and expanded customer acquisition

Sustainability

  • Development and promotion of energy-efficient commercial electric boilers
  • Improvement of work environment and labor savings through serving robots
  • Energy-saving operations via off-grid data center
  • Expansion of food waste reduction support systems
  • Ensuring safety through hygiene products for COVID-19
  • Paper resource reduction through various IT services
  • CO2 reduction through promotion of remote work and telework
  • Efficient customer support via 319 nationwide locations
  • Support for digitalization of sustainable food service industry
  • Participation in SDGs activities through collaboration with local communities
  • Product lifecycle management aimed at reducing environmental impact
  • Environmental education and awareness activities for employees