Kappa Create

Basic Information

Stock Code
7421
Industry
Retail Industry
Category Detail
Restaurants
Prefecture
Kanagawa Prefecture
Establishment Year
November 1981
Listing Year
December 1994
Official Website
https://www.kappa-create.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Uoki, Kura Sushi, Fujio Food, Choshimaru, FOOD & LIFE COMPANIES, Atom, Uoriki, Colowide, Genki Global Dining Concepts, KOZO Holdings

Overview

Kappa Create is a major restaurant company founded in 1981, operating the Kappa Sushi brand nationwide and possessing industry competitiveness as a member of the Colowide Group.

Current Situation

Kappa Create achieved consolidated sales of approximately 72.2 billion yen, operating profit of approximately 1.69 billion yen, and net profit of approximately 1.4 billion yen in the fiscal year ending March 2024. Its main conveyor belt sushi chain 'Kappa Sushi' operates about 350 stores nationwide, maintaining a customer base centered in eastern Japan. In the past, it experienced fierce competition, relinquishing market leadership to major competitors, but after becoming a subsidiary of Colowide, it has recovered competitiveness through new high-speed lane systems and all-you-can-eat services. In recent years, it has focused on IT initiatives and store renovations to improve customer satisfaction and operational efficiency. It is also working to regain trust from past scandals and fulfill corporate social responsibilities. Moving forward, it aims to differentiate from competitors while establishing a stable revenue base.

Trivia

Interesting Facts

  • There is a theory that Kappa Sushi was named after the plate circulation using water flow.
  • Kappa Sushi's signature menu item is 'Salad Gunkan', originating from Nagano Prefecture.
  • Introduced high-speed lane 'Sushi Tokkyu' in stores using Shinkansen-style trays.
  • Conducted campaigns offering sushi plates for 50 yen each in some stores.
  • Undergoing management reconstruction as part of the Colowide Group.
  • Offering temporary all-you-can-eat service 'Tabaho' nationwide.
  • Characters 'Ka-kun' and 'Pa-ko-chan' were refreshed in the 2020s.
  • History of abandoning merger talks with Genki Sushi.
  • Withdrew from South Korea operations in 2018 to focus on domestic business.
  • Drew attention to corporate governance due to past scandals including president arrest and resignation.

Hidden Connections

  • Collaborates with Colowide for group-wide procurement and management support.
  • Competes with Genki Sushi's high-speed lane technology while adopting similar systems.
  • Previously had capital ties related to stores with am/pm and FamilyMart.
  • Built a unique foundation in the conveyor belt sushi industry originating from Nagano Prefecture.
  • History of management changes due to past partnerships and conflicts with Zensho.
  • Actively disseminates official information on SNS and X (formerly Twitter).

Future Outlook

Growth Drivers

  • Improved customer convenience and efficiency through digitalization.
  • Menu development responding to health-conscious and diversified needs.
  • Strengthened synergies with Colowide Group.
  • Growth through store expansion and new format launches.
  • Enhanced sustainability addressing environmental and social responsibilities.

Strategic Goals

  • Expand to over 400 stores nationwide with deepened local embedding.
  • Expand high-speed lane stores to over 75% of total.
  • Achieve 30% reduction in food waste.
  • Promote employee diversity and further improve workplace environment.
  • Achieve sales over 80 billion yen and improved operating profit margin.

Business Segments

Restaurant Operations

Overview
Provides restaurant services centered on conveyor belt sushi chains.
Competitiveness
Nationwide store network
Customers
  • Domestic consumers
  • Tourists
  • Families
  • Businesspeople
Products
  • Conveyor belt sushi service
  • In-store dining service
  • Sushi delivery
  • Takeout

Food Processing and Supply

Overview
Provides high-quality food materials and processed products to achieve stable supply.
Competitiveness
Quality control and efficient logistics system
Customers
  • Own stores
  • External restaurants
  • Retailers
  • Prepared food stores
Products
  • Sushi topping processing
  • Side dish supply
  • Ingredient sales
  • Pre-cooked foods

Equipment and System Provision

Overview
Provides proprietary order and serving systems to support business efficiency.
Competitiveness
Customer satisfaction improvement through express lanes
Customers
  • Group stores
  • Franchise stores
Products
  • High-speed lane 'Sushi Tokkyu'
  • Order system
  • IT operation support

Competitive Advantage

Strengths

  • Brand strength from nationwide presence
  • Solid management foundation under Colowide
  • Efficiency gains from IT introductions like high-speed lanes
  • Extensive store network
  • Adaptability to diverse customer segments
  • Stable ingredient procurement system
  • Unique services like all-you-can-eat
  • Support for various payment methods
  • Long years of industry experience
  • Community-focused services
  • Efficiency improvements from organizational restructuring
  • Broad menu offerings
  • Focus on sustainability
  • High brand recognition
  • Flexible store expansion strategy

Competitive Advantages

  • Abundant resources and management support from Colowide Group
  • Enhanced customer experience and cost reduction via high-speed lane 'Sushi Tokkyu'
  • Maximized customer convenience with diverse payment options
  • Store deployments and menu adaptations suited to regional characteristics
  • Customer attraction boosted by all-you-can-eat introductions
  • Ingredient and logistics management through collaboration with numerous subsidiaries
  • Strengthened customer management and promotion via IT
  • Marketing strategies targeting diverse customer segments
  • Rapid management reforms and crisis response capabilities
  • Corporate stance focused on sustainability and social contributions
  • Niche differentiation in the diversifying food service industry
  • Long-built trust and recognition
  • Achieved balance of price competitiveness and quality
  • Economies of scale from multi-store operations
  • Collaborations with comprehensive brands

Threats

  • Intense market competition from rival conveyor belt sushi chains
  • Shifts in consumer preferences in food service and emergence of new formats
  • Labor shortages and rising labor costs
  • Brand damage from food safety and quality issues
  • IT security incidents and data leakage risks
  • Declining consumption due to economic downturns
  • Market restructuring risks from new entrants
  • Customer loss from loss of social trust
  • Declining profit margins from price competition
  • Impact on store operations from natural disasters
  • Operational restrictions during infectious disease outbreaks
  • Product shortages from supplier issues

Innovations

2021: Expansion of high-speed lane 'Sushi Tokkyu' system rollout

Overview
Deployed new technology for delivering post-cooked sushi via high-speed lanes in multiple stores.
Impact
Contributes to improved customer satisfaction and reduced waste.

2021: Launch of all-you-can-eat service 'Tabaho'

Overview
Introduced time-limited all-you-can-eat sushi service in select stores to increase foot traffic.
Impact
Helps attract new customers and increase visit frequency.

2022: Full rollout of digital payments and order touch panels

Overview
Implemented diverse cashless payments and touch panel ordering across all stores.
Impact
Achieves improved convenience and operational efficiency.

2023: New logo and character 'Ka-kun and Pa-ko-chan' refresh

Overview
Refreshed brand image by redesigning characters in a 2020s style.
Impact
Strengthens brand appeal to younger demographics.

2023: Advancement of store renovations and new format development

Overview
Accelerated renovations of existing stores and modernization of new store equipment.
Impact
Contributes to improved customer experience and enhanced competitiveness.

Sustainability

  • Introduction of food waste reduction programs
  • Energy-saving equipment to reduce environmental impact
  • Active use of local ingredients and support for regional industries
  • Promotion of paperless operations and strengthened digital management
  • Participation in local cleanups and social contribution activities
  • Enhanced measures to reduce plastics
  • Employee health management and creation of better workplaces