Kisoji

Basic Information

Stock Code
8160
Industry
Retail
Category Detail
Restaurants
Prefecture
Aichi Prefecture
Establishment Year
September 1952
Listing Year
November 1987
Official Website
https://www.kisoji.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Kisoji is a mid-tier leading company in the food service industry, established in 1952, primarily offering Japanese cuisine and shabu-shabu.

Current Situation

Kisoji achieved consolidated sales of approximately 53.2 billion yen and operating profit of approximately 2.7 billion yen in the fiscal year ending March 2025, solidifying its position in the domestic and international food service markets. Its core shabu-shabu and Japanese cuisine restaurants, centered in the Chubu region, operate around 191 stores nationwide, with the Kisoji brand earning top-class evaluations in the industry. The company operates diverse food service formats, actively expanding yakiniku and izakaya businesses. It has established efficient production systems such as central kitchens and focuses on quality control. In recent years, it has strengthened its value chain through the absorption and merger of subsidiaries and the acquisition of a meat processing company as a subsidiary. On the other hand, it is addressing labor issues such as long working hours and striving to improve the work environment. Moving forward, it will pursue regional closeness and high-quality service as strategic pillars, enhancing competitiveness through brand value improvement and further store expansion.

Trivia

Interesting Facts

  • Founded in 1952 as a small coffee shop.
  • Shabu-shabu Kisoji is top-tier in the industry with Chubu base.
  • Central kitchen established in 1975, achieving stable supply.
  • Previously operated family restaurants.
  • Addressing labor environment issues early and working on structural improvements.
  • Actively advancing business integration through subsidiary mergers.
  • Achieved broad customer base through diverse format deployment.
  • Brand strategy balancing regional closeness and premium feel.
  • Management style combining tradition and innovation.
  • Operates 191 stores nationwide.
  • Multiple long-serving executives with president experience in management.
  • Strengthened vertical integration by making meat processing company a subsidiary.
  • In 2024, faced document referral to prosecutors for Labor Standards Act violation as a corporation.
  • Has in-house proprietary talent development education system.
  • Focuses on improving customer satisfaction with many repeat customers.

Hidden Connections

  • Former family restaurant business partially transitioned to current izakaya "Sozaiya".
  • Asahi Beer is a major shareholder, with deep ties in the food and beverage industry.
  • Vertical integration from meat processing to store operations via subsidiaries.
  • Listed on both Nagoya and Tokyo Stock Exchanges, providing diverse funding routes.
  • Strengthened industry collaboration through participation in regional food service group "Kyōsō Wayakai".
  • Approximately 40% of employees reported time stamping issues in 2021, with improvement activities ongoing.
  • Focused on labor management improvements about 3 years after long working hours issue surfaced.
  • Practices multi-format strategy with different target customers and cuisine genres per brand.

Future Outlook

Growth Drivers

  • Stable increase in demand for premium Japanese cuisine and shabu-shabu
  • Market expansion through store network growth in provincial cities
  • Menu development aligned with rising health consciousness
  • Cost efficiency improvements and quality enhancement via vertical integration
  • Enhanced customer experience through digitization
  • Improved employee retention via labor environment reforms
  • Brand penetration through strengthened regional collaborations
  • Revenue diversification through multi-format deployment
  • Advancement of franchise expansion
  • Strengthening of sustainability activities

Strategic Goals

  • Achieve 250 domestic stores
  • Complete realization of labor management and work-style reforms
  • 30% reduction in environmental impact across all businesses
  • Over 50% ratio of sustainable ingredient procurement
  • Brand strengthening through enhanced regional community collaborations
  • Business efficiency via digitization advancement
  • Sustainable development and deployment of new food service formats
  • Further integration and efficiency of subsidiary businesses
  • Maintain and improve customer satisfaction above 90%
  • Build stable financial base and sustain growth

Business Segments

Restaurant Operations Support

Overview
Provides operations support and consulting for the food service industry.
Competitiveness
Years of store operation experience and diverse format development
Customers
  • Food service chains
  • Hotels
  • Tourist facilities
  • Corporate customers
Products
  • Store operations know-how provision
  • Ingredient procurement support
  • Menu development
  • Franchise management

Meat Processing and Sales

Overview
Provides high-quality meat processed products through Tatebe Food Industry.
Competitiveness
Quality control and rapid supply system via in-house factories
Customers
  • Food service chains
  • Retail stores
  • Meat wholesalers
  • Processed food manufacturers
Products
  • Processed beef
  • Pork processed products
  • Chicken products
  • Seasoned processed foods

Seasonings and Processed Foods Manufacturing

Overview
Manufactures and sells commercial-use seasonings and home-use processed foods.
Competitiveness
Provides restaurant-quality flavors for home use
Customers
  • Restaurants
  • Food manufacturers
  • Mail-order businesses
Products
  • Sesame sauce
  • Simmered dishes
  • Shabu-shabu broth

Real Estate Leasing

Overview
Operates commercial real estate leasing business in Nagoya City.
Competitiveness
Stable rental income utilizing own stores
Customers
  • Tenant companies
  • Own store operations
Products
  • Store-use rental real estate
  • Commercial facility operations

Competitive Advantage

Strengths

  • Strong store network centered in the Chubu region
  • High-quality shabu-shabu cooking techniques
  • Ability to deploy diverse food service formats
  • Stable quality control via central factory
  • High brand recognition
  • Proprietary talent development system
  • Sustainable store expansion strategy
  • Resource utilization through active subsidiary integration
  • Robust menu development capabilities
  • Mid-tier leadership in the food service industry

Competitive Advantages

  • Industry-leading shabu-shabu specialty restaurant network
  • Nationwide multi-store deployment for market penetration
  • Customer segment acquisition through diverse brand strategies
  • Cost efficiency and quality stability via centralized production
  • Regional closeness customer service and brand strengthening
  • Business efficiency and synergy creation through subsidiary mergers
  • Fusion of traditional Japanese cuisine techniques and modern management
  • Abundant operations know-how cultivated over years in food service
  • Maintained service quality through high employee training
  • Stable management via prudent risk management

Threats

  • Risk of corporate image deterioration due to labor environment issues
  • Intensified market competition from competitors' diversified businesses
  • Risk of sales fluctuations from declining consumer dining-out demand
  • Potential risks from food hygiene issues
  • Cost increases from rising raw material prices
  • Market growth disparities due to regional economic gaps
  • Store operation difficulties from labor shortages
  • Business restrictions from external risks such as new infectious diseases
  • Increased labor management costs from regulatory strengthening
  • Changes in customer preferences amid food diversification

Innovations

2024: Strengthening Labor Management System

Overview
Introduced tactical attendance management system to address long working hours.
Impact
Achieved improved employee satisfaction and thorough legal compliance.

2023: Absorption Merger of Subsidiary Dai Shogun

Overview
Aimed to improve management efficiency and strengthen brand through yakiniku business consolidation.
Impact
Strengthened regional deployment of yakiniku format, contributing to market share expansion.

2022: Subsidiary Acquisition of Tatebe Food Industry

Overview
Established vertical integration in meat processing to stabilize raw material supply.
Impact
Succeeded in reducing processing costs and improving quality.

2021: Participation in Kyōsō Wayakai

Overview
Participated in the establishment of Chubu-Hokuriku food service association and strengthened industry collaboration.
Impact
Enhanced competitiveness through strengthened regional food service industry collaboration.

2020: Central Kitchen Equipment Renewal

Overview
Factory renovation aimed at improving production efficiency and strengthening quality control.
Impact
Stable quality supply and increased production capacity.

2024: Digital Menu Introduction

Overview
Promoted digitization for customer convenience and order efficiency.
Impact
Improved store operations efficiency and customer satisfaction.

2023: Strengthened Regional Advertising

Overview
Expanded customer attraction through digital ads and regional event collaborations.
Impact
Succeeded in acquiring new customers and improving brand recognition.

2021: New Menu Brand Development

Overview
Introduced health-oriented menus in the Sozaiya division.
Impact
Contributed to customer segment expansion and sales growth.

Sustainability

  • Promotion of labor environment improvement programs
  • Efficient operations to reduce food waste
  • Promotion of active use of local ingredients
  • Expansion of energy-saving equipment introduction
  • Adoption of environmentally friendly packaging materials
  • Strengthening employee health management
  • Sustainable growth through collaboration with local communities
  • Systematic implementation of CSR activities
  • Continuous strengthening of safety and hygiene standards
  • Participation in plastic reduction campaigns