Kairikiya

Basic Information

Stock Code
5891
Industry
Retail
Category Detail
Restaurants
Prefecture
Kyoto Prefecture
Establishment Year
February 2003
Listing Year
December 2023
Official Website
https://www.kairikiya.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
INGS, Garden, Eat and Holdings, Monogatari Corporation, Maruchiyo Yamaokaya, Ikino Gen Holdings, Washington Hotel, Ikka Holdings, Hatsuhoshi Shoji, Kourakuen, Hidaka HD, Ringer Hut, Gift Holdings, Osho Food Service, Hachiban

Overview

Ramen Kairikiya is a ramen chain originating from Kyoto, founded in 2003, and a representative company in the food and beverage industry listed on the Tokyo Stock Exchange Standard Market.

Current Situation

Ramen Kairikiya recorded standalone sales of approximately 12.3 billion yen and operating profit of approximately 800 million yen for the fiscal year ending December 2024, maintaining a solid revenue base. Centered in Kyoto, it operates 113 stores nationwide across Kansai, Kanto, Tohoku, Tokai, and Okinawa, introducing regional pricing systems to build competitive advantages. Through direct operations and franchise expansions, it is advancing business diversification, operating tonkatsu specialty stores as a new format. It has actively expanded overseas by establishing a subsidiary in Taiwan, with a strategy aiming for 200 stores in the Asian market going forward. In logistics and quality control, it utilizes IoT to improve operational efficiency and focuses on providing sustainable food. The listing on the Tokyo Stock Exchange Standard Market in 2023 has strengthened its fundraising capabilities, concentrating on domestic and international store expansion and new format development as mid- to long-term growth drivers. In the future, it aims to enhance its regionally rooted model in the food service market and improve customer satisfaction.

Trivia

Interesting Facts

  • Representative of backfat soy sauce ramen chains originating from local Kyoto.
  • Rare ramen chain adopting region-specific pricing.
  • Many stores located in food courts.
  • Operates tonkatsu specialty stores in addition to ramen shops.
  • Over 113 stores domestically, expanded to Kanto, Tohoku, Tokai, and Okinawa.
  • Founder Soji Fujita shares business philosophy in his own publications.
  • Numerous supervised products for convenience stores.
  • Overseas expansion starting with Taiwan, targeting Asia.
  • Large-scale chain with over 3,000 employees.
  • Actively utilizes IoT for logistics efficiency.
  • Newly listed on the Tokyo Stock Exchange Standard Market in 2023.
  • Belongs to the fiercely competitive food service market among peers.
  • Characterized by regionally rooted management style.
  • Pioneer in digitalization in the food service industry.
  • Pricing divided into three tiers across regions.

Hidden Connections

  • Jointly developed ramen supervised products with major convenience stores to expand distribution channels.
  • Implements FC-like chain expansion methods despite not primarily using franchises.
  • Brand philosophy widely disseminated through books by owner Fujita.
  • Strong ties with local economies formed through regional price differences.
  • Achieved both paperless operations and efficiency via IoT adoption.
  • Established Taiwan subsidiary as a foothold for Asian expansion.
  • Intensely competing in the market with peers like Osaka Osho and Hidaka HD.
  • Expanded beyond suburban roadside locations through food court entries.

Future Outlook

Growth Drivers

  • Store expansion strategies domestically and internationally.
  • Customer segment expansion through new format development.
  • Strengthening of convenience store product planning.
  • Operational efficiency via digital technology utilization.
  • Aggressive entry into overseas markets.
  • Deepening of regionally rooted services.
  • Development of health-oriented menus.
  • Building of sustainable management structure.
  • Improvement in quality control and safety.
  • Securing competitive edge through brand strengthening.
  • Response to digitalization in the food service market.
  • Development of new sales channels.

Strategic Goals

  • Establish 200-store network centered on Asia.
  • Sales expansion through new format brands.
  • Introduce sustainability standards across all stores.
  • 30% improvement in operational efficiency via IT utilization.
  • Optimization of regional pricing system.
  • Enhance global brand recognition.
  • Achieve 50% reduction in food waste.
  • Implement employee satisfaction improvement programs.
  • Achieve 100% sustainable procurement rate.
  • Expand sales ratio across diverse distribution channels.

Business Segments

Franchise Chain Expansion

Overview
Chain expansion through support for franchise affiliates.
Competitiveness
Flexible store operation support via regional pricing system
Customers
  • Individual business owners
  • Restaurant operators
  • Franchise affiliates
Products
  • Store operation support
  • Operation manuals
  • Quality control systems

Business-Use Ingredients and Product Supply

Overview
Supply of raw materials and products to own stores and business partners.
Competitiveness
Stable quality control and logistics system
Customers
  • Directly operated stores
  • Franchise stores
  • Retail stores
Products
  • Noodles
  • Soups
  • Seasonings
  • Frozen foods

Product Supervision and Planning

Overview
Development and supervision of products for convenience stores.
Competitiveness
Building trusted relationships with food service brands
Customers
  • Convenience store chains
  • Retailers
Products
  • Product development support
  • Menu supervision
  • Collaboration product planning

Competitive Advantage

Strengths

  • Introduction of region-specific pricing systems
  • Multi-store expansion capabilities nationwide
  • Balance of direct operations and franchises
  • Brand power from Kyoto origins
  • Thorough food quality and hygiene management
  • Business diversification through new formats
  • Stable financial base
  • Abundant human resources
  • Active overseas expansion
  • Effective marketing strategies
  • Collaboration with local communities
  • Product supervision expertise
  • Advanced logistics and quality control
  • Promotion of innovation
  • Listing on the Tokyo Stock Exchange Standard Market

Competitive Advantages

  • Brand superiority backed by Kyoto ramen culture
  • Customer retention through flexible pricing across multiple regions
  • Rapid store expansion via balanced direct and FC operations
  • Regional strategy enabling precise entry into growing food service areas
  • Increased recognition and distribution channels through collaboration products
  • Superior quality control and head office support systems
  • Business risk diversification through new formats and overseas expansion
  • Close ties to local areas and sustainable regional economic contributions
  • Leveraging credibility as a listed company to attract investment
  • Focus on employee training and talent development
  • Active IT adoption for operational efficiency
  • Strong sales power with diverse distribution channels
  • Support for new store openings with ample capital
  • High capability in product development considering local food culture
  • Product offerings adapting to changes in customer lifestyles

Threats

  • Intensifying competition in the food service market and increasing new entrants
  • Risk of fluctuating raw material prices
  • Challenges in talent acquisition and rising labor costs
  • Impact of external environmental changes such as new infectious diseases
  • Potential customer confusion from regional price differences
  • Risks related to food safety and hygiene issues
  • Exchange rate risks and local subsidiary operation risks from overseas expansion
  • Quality control risks at franchise stores
  • Increasing social pressure to reduce food waste
  • Increased regulatory burden from strengthened environmental policies
  • Market segment fragmentation due to diversifying customer preferences
  • New format entries by competitors

Innovations

2023: Listing on the Tokyo Stock Exchange Standard Market

Overview
Public listing of shares to strengthen fundraising capabilities and improve corporate transparency.
Impact
Achieved strengthening of management foundation and acceleration of new store openings.

2022: Establishment of Overseas Subsidiary in Taiwan

Overview
Established subsidiary to build foundation for overseas expansion and strengthen presence in Asia.
Impact
Gained a foothold for store expansion in the Asian market.

2021: Operational Efficiency via IoT and Digital Technology

Overview
Introduced QSC check app to reduce paper costs and strengthen quality control.
Impact
Improved operational efficiency and contributed to cost reductions.

2020: Opening of New Format 'Kyoto Katsu Riki'

Overview
Launched tonkatsu specialty stores to promote business diversification.
Impact
Led to acquisition of new customer segments and enhanced brand power.

Sustainability

  • Store operation optimization to reduce food waste
  • Environmentally considerate activities through collaboration with local communities
  • Strengthened safety and hygiene management
  • Improved work efficiency and reduced environmental impact via IoT adoption
  • Environmentally considerate design in food court stores
  • Sustainable talent development through employee training
  • Strict safety standards for convenience store collaboration products
  • Regional economic consideration via regional pricing system
  • Establishment of low-environmental-impact logistics system
  • Promotion of packaging reduction and recycling