Karula Co.,LTD.
2789・Standard Market・Retail Trade
Business
Karula Co., Ltd. is a company founded in 1910 and headquartered in Miyagi Prefecture that operates a chain of Japanese-style family restaurants. Centered on its core format "Marumatsu" (offering sushi, tempura, soba, etc.), the company operates multiple formats including "Kani Masamune," "Katsu Gourmet," "Marumatsu," "Jusho-an," and "Rara-tei," running 109 stores as of the end of February 2025. It has stores across the six Tohoku prefectures (Miyagi, Fukushima, Iwate, Aomori, Yamagata, and Akita) and Tochigi Prefecture, with Miyagi Prefecture accounting for approximately 52.6% of net sales. Through its subsidiary Watari Farm Co., Ltd., the company also engages in the production of hydroponically grown agricultural produce, positioning an integrated system from production to sales as its corporate mission. Its main customer base consists of families across a wide range of generations, from adults to children, seeking everyday dining options.
Business Model
Soups such as soba tsuyu, vegetables, and seafood are manufactured and processed at the company's own factories, achieving standardized quality and cost reduction. Other ingredients are procured through a centralized purchasing system, with head-office bulk buying and distribution to all stores via distribution centers. Under a hygiene management system compliant with HACCP, safe and reliable ingredients are supplied stably, and sales are recorded through food service provided at directly-operated stores. In-house production of hydroponically grown produce by the subsidiary Watari Farm also supports this integrated system.
Company Strengths
As of the end of February 2025, existing-store sales achieved year-on-year growth for 36 consecutive months. Continuous customer growth is being driven by information dissemination via social media platforms including Instagram, X, and LINE, sales promotion through door-to-door flyer distribution and newspaper inserts, and strengthened reservation capture through a dedicated department for inbound demand.
The company owns a head office factory and distribution center in Kurokawa-gun, Miyagi Prefecture, and has internalized everything from the manufacturing and processing of soba broth and other soups, vegetables, and seafood to consolidated delivery to all stores. This has enabled standardization of quality and reduced purchasing unit costs, establishing a system that stabilizes the cost ratio even amid rising raw material prices in the food service industry.
In FY2022 (ending March 2022), the company recorded a net loss with sales of ¥5,200 million and an operating loss of ¥410 million, but by FY2024 (ending March 2024) it had turned profitable with sales of ¥6,841 million and operating profit of ¥349 million. In FY2026 (ending March 2026), the company is expected to maintain profitability with sales of ¥7,544 million and operating profit of ¥306 million, while the equity ratio has recovered to 39.4%.
ENVALITH's Perspective
Performance Trend
Revenue has maintained a stable growth trajectory, rising for five consecutive fiscal periods from ¥5,200 million in FY2022 to a full-year forecast of ¥7,700 million for FY2027 (ending February 2027). Meanwhile, operating profit peaked at ¥366 million in FY2025 and has since trended downward, to ¥307 million in FY2026 and a forecast of ¥289 million for the full year of FY2027 (ending February 2027). In the first quarter, core business profitability (operating profit and ordinary profit) increased year on year, but net profit came to just ¥16 million, down 79.8% year on year, due to the recording of a director retirement benefit extraordinary loss of ¥81,900 thousand. External factors—rising raw material costs, higher personnel expenses, and price increases stemming from yen depreciation—continue to weigh on profit margins.
Growth Strategy
Sustainable growth through improving existing-store profitability, promoting DX, and capturing inbound demand
The company is proceeding with the sequential introduction of mobile ordering to improve store operation efficiency, aiming to enhance productivity and reduce store burden under a labor shortage environment by combining this with the standardization of work methods to eliminate reliance on individual staff skills.
The company continues to strengthen its reservation system through a dedicated department, while promoting repeat usage through enhanced cooperation with travel-related businesses. It is building a system to convert the external environment of inbound demand into its own customer-drawing power.
The company aims to improve product appeal and brand value by continuing to roll out a collaborative menu using Jinchu Co., Ltd.'s beef tongue at its core brand "Marumatsu," and by continuing to offer menu items using Hirata Bokujo's Sangen pork at the "Katsu" brand.
The company continues initiatives to capture diversifying regional needs by encouraging active use of regional gift certificates issued by various municipalities and digital regional currencies (such as Miyagi Point), contributing to increased same-store sales.
The company is promoting productivity improvement across the organization through smoother information sharing and enhanced training systems. Under a severe labor shortage environment, it aims to stabilize its earnings structure by simultaneously curbing recruitment costs and retaining and developing existing personnel.
Last updated: July 17, 2026