kaihan co.,Ltd.
3133・Growth Market・Retail Trade
Food & Beverage Business
Core segment centered on the planning, development, and operation of izakaya and other dining establishments
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (full year, FY2026 (ending March 2026)) | ¥2,461 million | ¥2,426 million | ↑ |
| Segment profit/loss (full year, FY2026 (ending March 2026)) | △¥14 million | ¥113 million | ↓ |
| Segment sales (full year, FY2025 (ended March 2025)) | ¥2,426 million | — | — |
| Segment profit (full year, FY2025 (ended March 2025)) | ¥113 million | — | — |
| Number of stores (end of March 2026) | 42 stores (27 company-operated, 15 SSS-operated) | 46 stores (27 company-operated, 19 SSS-operated) | ↓ |
| Of which, number of "Shinjidai" stores (end of March 2026) | 20 stores | — | ↑ |
| Impairment loss (full year, FY2026 (ending March 2026)) | ¥20 million | ¥39 million | ↓ |
Business Details
An izakaya chain operation business with a dominant base in the Tokai region (Aichi, Gifu, Mie) and expansion into the Kanto region. The company is promoting business format conversion through FC affiliation with the "Shinjidai" format operated by Fuzz Co., Ltd., and is also expanding into the Kanto region through its subsidiary SSS Co., Ltd. As of the end of March 2026, the company operates 27 stores (including 8 FC stores) directly and SSS Co., Ltd. operates 15 stores (including 14 FC stores), for a total of 42 stores. Sales account for approximately 78% of consolidated revenue, making it the core segment, but the segment fell into a segment loss during the period under review.
Recent Overview
Sales increased 1.4% year-on-year to ¥2,461 million, but the segment fell into a segment loss of ¥14 million
Segment sales for the full year of FY2026 (ending March 2026) grew only slightly to ¥2,461 million (up 1.4% year-on-year), while segment profit/loss deteriorated from a profit of ¥113 million in the prior period to a loss of ¥14 million. The "Shinjidai" format continued to perform well with 20 stores group-wide, but rising utility costs, raw material prices, and labor costs squeezed profitability. Additionally, the number of stores operated by SSS Co., Ltd. decreased from 19 stores (including 18 FC stores) in the prior period to 15 stores (including 14 FC stores).
Key Products
Growth Drivers
- Improvement in existing store profitability through business format conversion to "Shinjidai" (expanded to 20 stores group-wide)
- Expansion of business area into the Kanto region through the subsidiarization of SSS Co., Ltd.
- Boost to dining-out demand from expanding inbound tourism demand
- Promotion of a high-margin store operation model through outsourced store development (utilizing FC)
- Efforts to improve profit margins through thorough management of food costs and labor costs
- Strengthening of existing store operations through enhanced human capital and improved quality, service, and store cleanliness
Risks
- Profit pressure from continued increases in raw material and utility costs (the segment fell into a loss for the full year of FY2026 (ending March 2026))
- Cooling of consumer sentiment and declining visit frequency due to negative real wage growth
- Overall shrinking trend in the izakaya market due to younger generations drinking less alcohol and the declining birthrate/aging population
- Rising labor costs to address labor shortages
- Risk of difficulty securing properties meeting store opening conditions and delays in new store opening plans due to intensifying competition
- Breach of financial covenants on borrowings from certain financial institutions (material doubt regarding going concern assumption for the group as a whole)
- Risk of reduced business scale due to the decrease in the number of SSS Co., Ltd. stores (from 19 stores in the prior period to 15 stores in the current period)
Last updated: July 8, 2026