OM2 Network

Basic Information

Stock Code
7614
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Tokyo
Establishment Year
July 1989
Listing Year
October 1999
Official Website
http://www.om2.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

OM2 Network is a meat retail holding company founded in 1989 and based in Minato-ku, Tokyo. It engages in meat manufacturing, processing, and restaurant operations, establishing a stable position within the industry.

Current Situation

OM2 Network recorded consolidated sales of 31 billion yen and operating profit of about 1.4 billion yen in fiscal 2018. Its main businesses are meat retail and prepared foods manufacturing through subsidiaries, as well as operating yakiniku and steak restaurants. Although competition in the industry is intense, it maintains stable growth through group-wide integrated management leveraging its holding company structure. In 2016, it became part of the S Foods Group, enhancing capital stability. It adopts proprietary original gifts and Outback meal vouchers as shareholder benefits to boost customer loyalty. Its financial position is sound with no borrowings. With about 540 employees (including part-timers), it achieves efficient store operations. It is advancing management policies that consider the environment and promote local production for local consumption. Moving forward, as a holding company, it aims for medium- to long-term growth by diversifying group businesses, expanding into markets, and strengthening digital utilization.

Trivia

Interesting Facts

  • Started meat sales in Masuda City, Shimane Prefecture at founding
  • Subsidiary yakiniku chain 'Yakiniku no Gyuta' has long-standing stable operations
  • Became a wholly-owned subsidiary of Foodrie in 2016, strengthening capital
  • Introduced Outback Steakhouse meal vouchers as shareholder benefits
  • OM2 Meat Co., Ltd. handles meat manufacturing as a wholly-owned subsidiary
  • Shareholders include many trading partner stock associations and major food companies
  • High financial stability from zero borrowings
  • Headquarters building in Shiba Daimon, Minato-ku, known as a hub for meat-related companies

Hidden Connections

  • Parent company S Foods is a major meat processing firm providing management support
  • Domestic partnership with Outback Steakhouse strengthens restaurant branding
  • Many meat-related companies among shareholders, forming a strong industry network
  • Connections from Masuda City days still influence management policies

Future Outlook

Growth Drivers

  • Increasing demand for high-quality meat amid health trends
  • Strengthened targeting of younger demographics in restaurant business
  • Expansion of mail-order and EC channels
  • Improved group production efficiency and cost reductions
  • Customer acquisition through enhanced community-focused marketing

Strategic Goals

  • Consolidated sales exceeding 50 billion yen
  • Achieve environmental reduction targets (30% reduction in packaging materials)
  • Expansion of welfare and community contribution activities
  • Achieve 20% EC sales ratio through strengthened digital marketing
  • Nationwide rollout of new store formats and brand value enhancement

Business Segments

Meat Processing Supply

Overview
Focuses on manufacturing and supplying high-quality meat products for business use to a wide range of customers.
Competitiveness
Nationwide group network and integrated production management
Customers
  • Restaurant chains
  • Prepared food manufacturers
  • Retail meat shops
  • Commercial markets
  • School lunch companies
Products
  • Processed beef
  • Cut pork
  • Frozen prepared foods
  • Ready-to-cook meat products
  • Meat gifts

Restaurant Business Management

Overview
Operates yakiniku and steak restaurants through its own and subsidiary operations.
Competitiveness
Consistent quality control and service from meat processing to provision
Customers
  • General consumers
  • Corporate banquets
  • Tourists
  • Local communities
Products
  • Yakiniku dishes
  • Steak menus
  • Banquet and dining plans
  • Takeout bento

Gift and Present Market

Overview
Provides diverse gift products for the gift market to enhance brand value.
Competitiveness
Diversified approach linking in-house processed goods and restaurants
Customers
  • Individual customers
  • Corporate customers
  • Department stores
  • Mail-order businesses
Products
  • Gift ham and sausages
  • Meal voucher sales
  • Seasonal limited gift sets
  • Corporate novelties

Competitive Advantage

Strengths

  • Business integration via group holding structure
  • Diversification across meat retail/manufacturing and restaurants
  • Stable backing from parent company S Foods
  • Customer retention through diverse shareholder benefits
  • Sound financial position with zero debt
  • Employee expertise and service quality
  • High-quality in-house processed meat products
  • Community-focused restaurant operations

Competitive Advantages

  • Quality and cost management through group integrated production via subsidiaries
  • Comprehensive coverage from meat manufacturing to restaurant services to meet customer needs
  • Management efficiency and swift decision-making as a holding company
  • Customer attraction via partnership meal vouchers with Outback Steakhouse
  • Strength in urban markets from Minato-ku, Tokyo headquarters
  • Stable shareholder composition leading to low stock volatility
  • Ongoing new product development and region-specific offerings
  • Efficient store operations through employee count management

Threats

  • Intensifying price competition from rival retailers
  • Demand shifts due to changing consumer health trends
  • Risk of raw material price fluctuations
  • Rising labor costs from stricter work environment regulations
  • Sensitivity to economic fluctuations in the restaurant industry
  • Reputation risk from food safety issues
  • Competition from new low-price entrants
  • Logistics disruptions from natural disasters, etc.

Innovations

2023: Expansion of New Store Formats

Overview
Opening numerous small, efficient yakiniku stores in the Tokyo metropolitan area to drive performance growth.
Impact
20% increase in restaurant business sales

2022: Strengthening Digital Sales Promotion

Overview
Revamped in-house EC site and enhanced SNS integration to expand mail-order sales.
Impact
30% increase in mail-order sales

2021: Introduction of Prepared Foods Automation Equipment

Overview
Introduced automated cooking and packaging equipment in prepared foods factories to improve production efficiency.
Impact
15% improvement in production efficiency and cost reductions

2020: Adoption of Environmentally Friendly Packaging

Overview
Switched packaging materials to lower environmental impact options to enhance sustainability.
Impact
10% reduction in plastic usage

Sustainability

  • Adoption of low-environmental-impact packaging materials
  • Active use of local ingredients
  • Enhanced employee safety and health management
  • Efforts to reduce waste and losses
  • Promotion of collaboration with local communities