Kannan Maru

Basic Information

Stock Code
7585
Industry
Retail
Category Detail
Restaurants
Prefecture
Saitama Prefecture
Establishment Year
May 1982
Listing Year
June 1998
Official Website
http://www.kannanmaru.co.jp/
TSE Information
TSE Information
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Overview

Kannan Maru is a Saitama-based restaurant chain company established in 1982, operating multiple major brands such as Shoya and providing community-oriented dining services.

Current Situation

Kannan Maru recorded consolidated sales of 3.57 billion yen in fiscal 2019, with operating losses but maintaining a solid asset base. Primarily operating as a franchisee of Daisho and Is Planning centered in Saitama Prefecture, it runs diverse izakaya formats including Shoya, Nihonkai Shoya, and Yaruki Chaya, with a network of over 100 stores. It also operates Shinshin Maru, a subsidiary franchisee of Doutor Coffee, pursuing diversification. With a community-focused business model, it enjoys strong local customer support and strengths in store operations. In recent years, it has relocated its head office to strengthen its management foundation and continues store development and service improvements tailored to customer needs. Moving forward, in a challenging dining market, its strategy centers on efficient operations and enhancing brand value. Key management challenges include improving operating losses and balancing store expansion. It aims to leverage its community strengths while focusing on new formats and productivity improvements.

Trivia

Interesting Facts

  • Local community-focused dining company founded in 1982
  • Stable management as Daisho Group franchisee
  • Operates karaoke-integrated dining for composite services
  • Operates Doutor Coffee via subsidiary Shinshin Maru
  • Main stores centered in Urawa City, Saitama Prefecture
  • Over 100 stores with strong regional presence
  • Continues community-rooted store operations since founding
  • Head office located in Kita-Urawa, Urawa-ku, Saitama City
  • Caters to broad customer base across dining genres
  • Stable customer base from community focus
  • Maintains industry brand strength through Daisho ties
  • Participates in regional events with diverse store formats
  • Relatively steady store expansion compared to peers
  • Attracts many female customers via subsidiary cafes
  • Captures diverse demographics through multi-brand rollout

Hidden Connections

  • Daisho is the largest shareholder sharing operational know-how
  • Strengthening ties with local Saitama government
  • Connected to major coffee chain via subsidiary Shinshin Maru
  • Multiple izakaya brands cover different age groups
  • Head office in Kita-Urawa, known for vibrant dining culture
  • Long-term contracts with local liquor wholesalers
  • Multiple stores sponsor regional events and festivals
  • Ongoing store renovations aligned with consumer needs

Future Outlook

Growth Drivers

  • Strengthening community focus centered in Saitama
  • Customer diversification through multiple brands
  • Operational efficiency via digitalization of reservations
  • Diversification push with new formats and services
  • Store count growth via franchise expansion
  • Trust building through thorough hygiene and safety
  • Differentiation via local ingredients
  • Revenue stabilization from cafe business growth
  • Renovation investments for enhanced customer experience
  • Strengthened collaborations with local partners
  • Active rollout of low-environmental-impact measures
  • Brand awareness expansion via online promotion

Strategic Goals

  • Achieve over 120 stores
  • Turn operating profit black and strengthen financial base
  • Complete digitalization across all stores
  • Enhance community-focused brand value
  • Cafe business to account for over 20% of sales
  • 75% or more stores sustainability-compliant
  • Maintain industry-leading customer satisfaction scores
  • Open 3 or more new format stores annually
  • Sustain employee retention rate over 80%
  • Strengthen regional contribution programs

Business Segments

Restaurant Franchise Operations

Overview
Supports store expansion centered in Saitama as a Daisho Group franchisee.
Competitiveness
Operational know-how tailored to regional characteristics
Customers
  • Individual franchisees
  • Small and medium dining operators
  • Local dining corporations
  • Commercial facility operators
Products
  • Izakaya FC store operation support
  • Menu development for restaurants
  • Store management systems
  • Kitchen equipment support

Beverage and Food Sales for Dining

Overview
Provides stable beverage and ingredient supply services to restaurants.
Competitiveness
Direct-from-source and stable procurement system
Customers
  • Franchise affiliates
  • Retail stores
  • Event and fair operators
  • Corporate customers
Products
  • Alcoholic beverages
  • Ingredient supply
  • Drinks
  • Bulk cuisine materials

Cafe Operation Support

Overview
Provides coffee chain operation know-how through Shinshin Maru.
Competitiveness
Leveraging national brand strength
Customers
  • Cafe owners
  • Commercial facility operators
  • Educational facilities
  • Corporate customers
Products
  • Doutor Coffee FC operations
  • Interior concept design
  • Staff training programs
  • Store operation support

Competitive Advantage

Strengths

  • Community-focused store deployment
  • Diverse dining brand portfolio
  • Franchise network
  • Department store sales channels
  • Established management foundation
  • Diversification via subsidiaries
  • Strong store operation expertise
  • Solid local customer base
  • Varied cuisine genres
  • Stable capital structure
  • Skilled kitchen techniques
  • Long-term contracts with key suppliers
  • Regional event collaborations
  • Effective marketing
  • Ongoing store renovations

Competitive Advantages

  • Stability from Daisho's strong franchise support
  • Customer base expansion through multi-brand operations
  • Regional dominance and high recognition in Saitama
  • Business growth via cafe diversification through subsidiary
  • Broad distribution and drawing power from numerous stores
  • Maintained service quality via proprietary store training system
  • Synergy effects from multi-brand integration
  • Procurement competitiveness from long-standing regional networks
  • Increased customer touchpoints via events and online sales
  • Comprehensive talent development and stable turnover
  • Store design boasting high repeat rates
  • Maintaining regulars and acquiring new customers through renovations
  • Regional economic contribution via local products
  • Efficient accounting and logistics systems
  • Optimal store placement based on market analysis

Threats

  • Intensifying price competition in dining industry
  • Rising store operation costs due to labor shortages
  • Risks from sales restrictions due to new infections
  • Raw material price instability
  • Market share pressure from competitors' new openings
  • Declining demand from changing customer preferences
  • Increased operational burden from stricter regulations
  • Deterioration in local economic conditions
  • Risk of business suspension from disasters
  • Decline in physical store demand from online dining services
  • Heightened societal demands for food safety
  • Subsidiary performance impact from exchange fluctuations

Innovations

2023: Digitalization Push for Multi-Brand Stores

Overview
Implemented system overhaul for store management and enhanced online reservation functions.
Impact
15% increase in reservation rate, improved customer satisfaction

2022: Strengthened Hygiene Management

Overview
Significantly revised store hygiene manuals in response to new infections.
Impact
Enhanced safety through thorough infection prevention measures

2021: Brand Menu Refresh

Overview
Introduced new seasonal ingredient menus to boost average spend per customer.
Impact
20% increase in menu utilization

2020: Expanded Electronic Payments

Overview
Fully introduced QR code and cashless payments at major stores.
Impact
Shortened payment times and improved customer convenience

Sustainability

  • Food loss reduction campaigns
  • Promotion of local ingredients
  • Expansion of energy-saving equipment stores
  • Waste recycling rate improvement plans
  • Employee work-life balance support