Daisyo

Basic Information

Stock Code
9979
Industry
Retail Industry
Category Detail
Restaurants
Prefecture
Tokyo
Establishment Year
November 1971
Listing Year
July 1994
Official Website
https://www.daisyo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Daisyo is a food service company founded in 1971, operating multiple izakaya chains nationwide such as Shoya, and featuring an extensive store network including franchise stores.

Current Situation

Daisyo recorded consolidated sales of approximately ¥44.8 billion for the fiscal year ended August 2020, with izakaya chain operations as its mainstay in the food service industry. It has expanded operations through brand diversification and M&A. In 2020, it significantly reduced its capital to streamline its management structure. Due to the impact of COVID-19, it experienced deteriorating performance, store closures, and declared no interim dividend. It is working to improve its labor environment in response to long working hours issues. It has no parent company, multiple subsidiaries, and is also engaged in logistics and seafood sales. In 2021, it transferred its karaoke business to concentrate management resources on the izakaya business. Moving forward, it is seeking growth while pursuing efficiency in the challenging food service environment.

Trivia

Interesting Facts

  • Known for the customer service phrase 'Yes! With pleasure!'
  • Nominated for Black Company Award in 2014
  • Rare case where representative director held liable for damages in karoshi lawsuit
  • Established Tokyo Culinary Advanced Vocational Training School focusing on chef development
  • Previously operated karaoke format but transferred business in 2021
  • Pursuing growth through multi-format izakaya diversification via active M&A
  • Founder Tatsu Hira has strong commitment to improving management quality
  • Many franchise operations run by former employees due to heavy franchise focus
  • Multiple rounds of management restructuring including headquarters relocation and capital reduction
  • Several major beer manufacturers listed as major shareholders

Hidden Connections

  • Major alcoholic beverage makers like Asahi Beer, Kirin Brewery, and Sapporo Breweries are shareholders
  • Family-run characteristics with deep founder family involvement in management
  • Multi-brand system covers diverse customer segments
  • Karaoke business transfer severed ties with music-related companies
  • Branches, logistics, and other operations integrally managed across group subsidiaries
  • Major overhaul of labor management system following black company issues
  • Contributes to local economy centered on Ota Ward through community-based store operations
  • Connected to specific local restaurant chains through franchise affiliations

Future Outlook

Growth Drivers

  • Izakaya format brand differentiation and reorganization strengthening
  • Maintenance and expansion of franchise store network
  • Profit margin improvements through efficient store operations
  • Post-pandemic dining-out demand recovery and adaptation to consumer preference changes
  • Customer service enhancements via digital technologies
  • Employee satisfaction improvements through labor environment reforms
  • Stable revenue securing through strengthened community-based management

Strategic Goals

  • Market share expansion for major izakaya brands
  • Further strengthening and diversification of franchise model
  • Achieve labor productivity improvements and elimination of long working hours
  • Stabilize revenue structure through management efficiency
  • New customer acquisition via digital innovations
  • Enhance corporate value through expanded community contributions
  • Build sustainable food service business model
  • Strengthen financial base and promote growth investments

Business Segments

Ingredients Wholesaling for Restaurants

Overview
Mainly wholesales ingredients centered on seafood to its own and franchise stores.
Competitiveness
Stable procurement power through scale advantages
Customers
  • Daisyo directly-operated stores
  • Franchise stores
  • Food service chains
  • Small restaurants
Products
  • Fresh fish
  • Processed seafood
  • Frozen foods
  • Seasonings

Logistics Services

Overview
Provides ingredient delivery and logistics management to its own and external parties through subsidiaries.
Competitiveness
Regional logistics network
Customers
  • Own stores
  • Partner restaurants
  • Food manufacturers
Products
  • Ingredient delivery
  • Temperature-controlled logistics
  • Store maintenance

Cooking Personnel Training and Education

Overview
Provides culinary skills and food hygiene education through vocational training schools.
Competitiveness
Established education system within the industry
Customers
  • Daisyo store employees
  • External chefs
  • Vocational school students
Products
  • Tokyo Culinary Advanced Vocational Training School
  • In-house training programs

Restaurant-Related Real Estate Leasing

Overview
Manages real estate for restaurant stores for its own and related companies.
Competitiveness
Real estate utilization aligned with store expansion
Customers
  • Own stores
  • Related food service companies
Products
  • Restaurant property leasing
  • Operational facilities

Competitive Advantage

Strengths

  • Multiple izakaya brand deployment capabilities
  • Extensive nationwide store network
  • Strength in franchise expansion
  • Personnel development system via vocational training school
  • Logistics support system through subsidiaries
  • Brand recognition from long history in food service
  • Business expansion through aggressive M&A strategy
  • Regional store operation capabilities
  • Flexibility with diverse food service formats
  • Responses to long working hours issues
  • Unified management of proprietary brand lineup
  • Funding relationships with major financial institutions
  • Diversified revenue base through multi-segment operations

Competitive Advantages

  • High recognition and brand power in mass-market izakaya sector
  • Strong store network featuring franchise stores run by former employees
  • Owns Tokyo Culinary Advanced Vocational Training School for in-house talent development
  • Integrated support system including ingredient delivery via logistics subsidiary
  • Flexible response to market needs through diverse formats
  • Achieves growth foundation expansion and business diversification through active M&A
  • Headquarters and factory location in Ota Ward with high geographical convenience
  • Stable funding environment built with major banks

Threats

  • Decline in dining-out demand due to COVID-19
  • Risk of declining social credibility from labor issues
  • Intense market competition from competitors' format expansions
  • Rising raw material prices and labor costs
  • Business challenges from changing consumer preferences
  • Risk of poor performance in franchise stores
  • Increased operational costs from strengthened regulatory compliance
  • Concerns over delays in digitalization and IT investments
  • Ingredient procurement risks from weather and natural disasters
  • Business continuity risks from store closures and labor shortages

Innovations

2021: Store rationalization amid pandemic

Overview
Implemented near-half store closures and staff reductions due to COVID-19 impact.
Impact
Contributed to streamlining management structure and cost reductions.

2021: Transfer of karaoke business

Overview
Transferred 43 karaoke stores to Kosidaka Holdings to focus on core business.
Impact
Concentrated resources on food service and improved business efficiency.

2020: Major capital reduction

Overview
Reduced capital from ¥8.6 billion to ¥100 million to lighten financial structure.
Impact
Improved financial health and capital efficiency.

2022: Store brand reorganization

Overview
Closed low-profitability formats and concentrated resources on main brands.
Impact
Aims to strengthen brands and improve profitability.

2023: DX promotion for enhanced customer management

Overview
Improved customer services and promotions using digital technologies.
Impact
Improved customer satisfaction and repeat rate.

Sustainability

  • Promoting labor environment improvements to address long working hours
  • Continued regional job creation and vocational training
  • Strengthened hygiene management and food safety systems
  • Store energy management to reduce environmental impact
  • Regional event support as CSR activities