KOZO Holdings

Basic Information

Stock Code
9973
Industry
Retail
Category Detail
Restaurants
Prefecture
Tokyo
Establishment Year
February 1972
Listing Year
June 1994
Official Website
https://kozosushi-gr.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Uoki, Kura Sushi, Choshimaru, FOOD & LIFE COMPANIES, alt P, Media L, Atom, Kappa Create, Uochikara, RISE, Genki Global Dining Concepts

Overview

Kozo Sushi is a long-established Japanese retailer founded in 1972, primarily focused on takeout sushi and restaurant businesses, diversifying operations, and pursuing corporate regeneration.

Current Situation

Kozo Sushi operates approximately 159 stores in total, including directly managed and franchise locations, centered on takeout sushi chains. Although consolidated sales for the fiscal year ended December 2022 were about 10.3 billion yen, it incurred an operating loss, with the takeout sushi business remaining unprofitable. In the restaurant sector, it is advancing diversification through acquisitions of ramen shops and izakaya. In 2024, it transitioned to a holding company structure to strengthen its management base. Recently, it has focused on enhancing delivery infrastructure and promoting DX to improve profitability, achieving black ink in response to stay-at-home demand. Amid intensifying competition, it continues targeted expansion in residential areas to maintain its customer base. Looking ahead, it aims for business reconstruction and profit stabilization via M&A-driven expansion and rebranding of existing stores.

Trivia

Interesting Facts

  • Once boasted the largest sales in Japan's restaurant industry
  • Pioneer in takeout sushi with a long history
  • 'Hachimaki Tasuke' is the company's popular mascot
  • Transition to holding company is part of turnaround efforts
  • Experienced a decade-long streak of losses in past crisis
  • Pursuing diversification into multiple restaurant formats
  • Deliz acquisition bolstering delivery business draws attention
  • Multiple major restaurant-related firms as key shareholders
  • Sales once plummeted to 1/16 amid rise of conveyor sushi
  • Aiming for profitability improvement via store rebranding and delivery shift

Hidden Connections

  • Strengthened business collaboration with JFLA Holdings Group via Deliz contract
  • Past capital and business alliance with Skylark Group
  • Long history of competition with supermarkets and department stores
  • Management policy unifying multiple restaurant brands for synergies
  • Holding company transition separates parent and operating company functions
  • Once sponsored the anime 'Doraemon'
  • Formerly operated a nationwide chain of about 2,300 stores
  • Founder's name derives from the god of little monks

Future Outlook

Growth Drivers

  • Continued expansion of delivery business
  • Diversification and brand enhancement of restaurant formats
  • Efficiency improvements via strengthened management structure
  • Market opportunities from stay-at-home demand
  • Business expansion strategy leveraging M&A
  • Rebranding and renovation of new stores
  • Strengthening of community-based services
  • Productivity gains from IT and DX initiatives
  • Flexible response to evolving consumer needs
  • Pursuit of sustainability and social responsibility

Strategic Goals

  • Achieve profitability in takeout sushi business
  • Double sales scale in delivery business
  • Expand to 10 or more restaurant brands
  • Further efficiency in holding company structure
  • Improve customer satisfaction via community services
  • Advance environmental considerations like food loss reduction
  • Revolutionize customer experience through digitalization
  • Sustainable growth and profit stabilization in restaurant business
  • Product development responding to diverse customer needs
  • Expansion of social contributions and local partnerships

Business Segments

Delivery Services for Restaurants

Overview
Composite delivery business aimed at expanding restaurant sales.
Competitiveness
Integrated platform for multiple brand food delivery
Customers
  • Restaurant chains
  • Individually owned stores
  • Event organizers
  • Corporate welfare staff
Products
  • Delivery platform
  • Brand cuisine delivery
  • Food marketing support

Restaurant Management

Overview
Aims for customer attraction and monetization through diverse restaurant brands.
Competitiveness
Risk diversification through multi-format operations
Customers
  • Dining consumers
  • Corporate customers
  • Local communities
Products
  • Izakaya services
  • Ramen shop operations
  • Community-based dining establishments

Food Supply for Retail

Overview
Food supply services emphasizing freshness and quality.
Competitiveness
Proprietary logistics and procurement network
Customers
  • Supermarkets
  • Convenience stores
  • Restaurant industry
Products
  • Sushi topping supply
  • Prepared foods
  • Ingredient procurement

Competitive Advantage

Strengths

  • Diversified restaurant brand portfolio
  • Long history and community-embedded store network
  • Strengthened delivery business network
  • Management efficiency via holding company structure
  • Effective utilization of brand assets
  • Collaborative framework with major shareholders
  • Community-rooted food supermarket operations
  • E-commerce expansion for home delivery sushi
  • Entry into diverse food sectors
  • Customer base retention

Competitive Advantages

  • Established brand recognition in takeout sushi market
  • Unified management of multiple restaurant brands via Deliz
  • Flexibility from hybrid franchise and direct operations
  • Customer satisfaction through community focus and network delivery
  • Adaptability to market changes via diversified dining formats
  • Abundant store know-how and brand assets
  • M&A promotion and capital strategy for turnaround
  • Delivery efficiency via IT implementation
  • Balanced management of direct and FC stores
  • Synergy creation across various dining businesses

Threats

  • Intensifying competition from conveyor sushi and supermarkets
  • Market volatility risks from COVID-19 and similar events
  • Deteriorating profitability in takeout sushi business
  • Rising ingredient and logistics costs
  • Challenges in responding to diversifying consumer preferences
  • Operational cost increases from labor shortages
  • Industry encroachment by new entrants
  • Risks from strengthened insider trading regulations
  • Uncertainty from potential turnaround failure
  • Financial deterioration from M&A failures

Innovations

2024: Transition to Holding Company Structure

Overview
Transitioned to holding company structure in July 2024 to strengthen management foundation.
Impact
Efficiency in group management and promotion of restructuring.

2023: Acquisition of Taco Bell Business

Overview
Acquired the Mexican fast-food 'Taco Bell' business from JFLA Holdings Group.
Impact
Diversification of restaurant brands and acceleration of growth.

2022: Acquisition of Asuraport Co., Ltd.

Overview
Brought Asuraport, operator of Hokkaido ramen 'Dosanko' and chicken cuisine stores, into the group.
Impact
Expansion of restaurant locations and creation of revenue opportunities.

2020: Franchise Agreement with Deliz

Overview
Entered into a large-scale area franchise agreement for 100 stores with Deliz from JFLA Holdings Group.
Impact
Contributes to stable revenue from delivery business.

2020: Strengthening Delivery Systems like Uber Eats

Overview
Responded to COVID-19 by partnering with multiple delivery platforms including Uber Eats.
Impact
Captured stay-at-home demand and contributed to performance recovery.

Sustainability

  • Enhanced product management to reduce food loss
  • Promotion of local ingredient utilization
  • Implementation of store energy-saving measures
  • Social contributions through local job creation
  • Strict adherence to safety and hygiene standards