Horiifoodservice Co., Ltd.
3077・Standard Market・Retail Trade
Business
Horii Food Service Co., Ltd. was founded in 1983 and is headquartered in Mito City, Ibaraki Prefecture, listed on the TSE Standard Market as a restaurant operator. Centered on its flagship "Shinobiya" brand, the company operates 14 formats and 81 stores (as of end-November 2025), including "Umagoi," "Mondokoro," and "Emperor Steak." It is organized into three segments—North Kanto (38 stores), Greater Tokyo (31 stores), and Tohoku (12 stores)—targeting a wide range of customers, from suburban family-oriented Japanese-style dining to inbound-tourist-focused formats near train stations. The group is structured with CCH as its parent company and Horii Logistics as a subsidiary, providing integrated management from procurement through store operations.
Business Model
Through multi-store deployment within the same region (dominant strategy), the company suppresses logistics and management costs while managing costs of goods through centralized procurement of drinks and other items via its subsidiary Horii Logistics. It combines portfolio optimization—closing unprofitable stores and converting formats—with efforts to increase reservations and visit frequency by acquiring users of its proprietary app and LINE membership, thereby lifting existing-store revenue. EBITDA and the FLA ratio (food cost, labor cost, and advertising expenses as a percentage of sales) serve as key KPIs for thorough store-level profitability management.
Company Strengths
The Kita-Kanto area generated sales of ¥1,502 million (8 months) across 38 stores, achieving segment profit of ¥219 million and a profit margin of 14.6%. The successful conversion of suburban-type stores to family-oriented formats has enabled this area to function as the company's largest profit base. The relatively low fixed cost burden, due to the high proportion of long-held stores, is also a factor supporting the profit margin.
While "Shinobiya" remains the core brand with 40 stores, the company operates 14 formats including "Umagakoi," "Mondokoro," "Emperor Steak," "Buongiorno Shokudo," and "Akakara." In response to the risk of declining alcohol consumption, the company is shifting toward formats with greater emphasis on dining, and "Emperor Steak" Shinjuku Kabukicho, which targets inbound demand, has been performing above initial expectations.
Following the third-party allotment and exercise of stock acquisition rights in April 2025, capital stock and capital reserves increased by a combined ¥419,736 thousand, expanding total net assets to ¥1,076,939 thousand (up 108.1% from the end of the previous fiscal year). Cash and cash equivalents stood at a robust ¥1,405,734 thousand, and a flexible fundraising framework has been established through a commitment line agreement.
ENVALITH's Perspective
Performance Trend
Looking at the financial trends over the past five fiscal periods, operating losses persisted in FY2021–FY2022, followed by a recovery in sales and improvement in profit and loss from FY2023 onward. The company turned operating profit-positive in FY2024 (¥70 million), and posted operating profit of ¥200 million in FY2025 (an irregular 8-month fiscal period). In the interim period (6 months) of FY2026 (ending November 2026), the company achieved net sales of ¥3,056 million, operating profit of ¥345 million, and an operating margin of 11.3%, confirming a sharp improvement in profitability. As an external factor, the sustained high level of inbound foreign visitors to Japan has supported customer traffic and average spending per customer at stores located in urban areas and tourist destinations. Meanwhile, rising raw material costs and labor costs continue, and although the equity ratio improved to 35.7% (from 29.6% at the end of the previous period), continued attention is warranted regarding the financial structure, which still carries ¥1,300 million in short-term borrowings.
Growth Strategy
Building on stabilized existing-store profitability, the company is transforming into a comprehensive food-service company spanning eastern and western Japan through M&A and new-format store openings
Opened the 2nd "KOBE Beef Emperor Steak" store in Kyoto, expanding from the greater Tokyo area into the Kansai region. Leveraging the sustained high level of inbound foreign visitors, the company aims to expand high-value-added sales at urban and tourist-area locations.
Opened a new store in Kumagaya City, Saitama Prefecture, advancing expansion into suburban areas outside the northern Kanto region. Aims to capture family dining demand and broaden the customer base, generating synergies with existing formats.
Acquired Sushimasu Foods, which operates "Sushimasu" in the Kinki region (Osaka, Hyogo, Kyoto, and Nara), for cash consideration of ¥380 million (effective June 1, 2026). By incorporating the takeout sushi and bento business, the company accelerates its transformation into a comprehensive food-service company combining its eastern Japan base with a new western Japan presence.
Consolidated the charcoal-grilled yakiniku restaurant operator, whose entire shares were acquired effective December 1, 2025, into the Tohoku area. Recorded goodwill of ¥89 million and is applying know-how to meet dining demand at suburban stores and to remodel existing stores.
Reservation activity has remained solid, driven by strengthened acquisition of proprietary app members and LINE members. Together with grand menu revisions and price reviews to optimize costs by format, this stabilizes the profit base of existing stores.
Last updated: July 17, 2026