ENVALITH
株式会社ホットランドホールディングス logo

HOTLAND HOLDINGS Co., Ltd.

3196・Prime Market・Retail Trade

Official website
株式会社ホットランドホールディングス logo
HOTLAND HOLDINGS Co., Ltd.3196

Business

Hotland Holdings Co., Ltd. is a restaurant group founded in 1997, operating its core brand "Tsukiji Gindaco" alongside diverse business formats including takoyaki, taiyaki, izakaya, staple foods, and ice cream, across 744 domestic and 74 overseas stores. The company transitioned to a holding company structure in April 2025, overseeing 18 group companies. The food service business accounts for approximately 97% of net sales, while the company also operates a manufacturing and sales business (production and sale of frozen takoyaki, etc.) and a resort business (a stay-type outdoor leisure facility in Kiryu City, Gunma Prefecture). The company is characterized by a vertically integrated business model spanning from raw material procurement to machine manufacturing and store operations, and has set a medium-term target of becoming a ¥100 billion-scale restaurant group. Its core customer base is broad, spanning families, businesspeople, and inbound tourists.

Business Model

Most of the revenue is composed of food and beverage income from directly-operated, PC (contracted operation), and FC stores. Under FC and PC contracts, the company continuously receives royalty and contracted operation fees equivalent to 5% of monthly sales. In addition, it earns machine-related income by selling and maintaining proprietary takoyaki and taiyaki cooking machines, manufactured at its own engineering plant, to franchisees. In the manufacturing and sales business, the company wholesales frozen takoyaki and similar products to domestic supermarkets and to US theme park and casino operators, building a new revenue stream. Cost control through global procurement and in-house processing of the raw material (octopus), combined with barrier-to-entry construction via proprietary machinery, underpins profitability.

Company Strengths

Since opening its first store in 1997, the company has expanded to a total of 524 stores, including 424 domestic stores (takeout and food court formats) and 100 stores such as Gindaco Highball Sakaba. The securities report explicitly states that amid a wave of business closures among competitors in the takoyaki market, the company has established an overwhelming top market share position. Existing store sales maintained 100.3% year-on-year in FY2025 (ending December 2025).

The company procures approximately 4,100 tons of octopus annually from fishing grounds worldwide, including Asia and Africa, and has built a multi-location processing system in China, Vietnam, Indonesia, and Mauritania. It manufactures takoyaki and taiyaki cooking machines in-house at its own engineering plant, creating barriers to entry for franchisees. At the Kiryu Plant, the company handles integrated production of red bean paste made from Hokkaido-grown azuki beans, managing both quality and procurement costs.

The company operates more than 20 brands, including Tsukiji Gindaco, Gindaco Highball Sakaba, Tokyo Aburagumi Sohonten, Oden-ya Takeshi, and Yoshihei. In addition to the three business formats of directly-operated stores, PC (partner company) stores, and FC (franchise) stores, the company diversifies its revenue channels through overseas area FC agreements (Thailand, Indonesia, the Philippines, Spain, etc.), frozen food exports from its manufacturing and sales business, and Cold Stone Creamery ice cream vending machines (74 units).

ENVALITH's Perspective

1Q FY2026 ordinary income of ¥917 million (up 72.3% year on year) and net income attributable to owners of parent of ¥520 million (up 56.2% year on year) were mainly driven by the recognition of ¥198 million in foreign exchange gains from the mark-to-market valuation of forward foreign exchange contracts. This largely reflects a rebound effect from the same period last year, when the company recorded a foreign exchange loss of ¥237 million; the improvement at the operating income level (up 1.6% year on year) was limited. Continued monitoring is warranted given the significant swings in ordinary income depending on changes in the foreign exchange environment.

Long-term borrowings (including current portion) at the end of 1Q FY2026 reached a total of ¥10,703 million (up ¥1,183 million from the end of the previous fiscal year), and interest expenses also increased from ¥34 million in the same period last year to ¥52 million. The cost of sales ratio was flat at 43.5% (43.4% in the same period last year), but selling, general and administrative expenses expanded to ¥7,040 million (up 8.4% year on year), outpacing the 7.9% sales growth rate, resulting in a slight decline in the operating margin to 5.5% (from 5.8% in the same period last year). Amid an external environment of continued increases in labor and raw material costs, cost management will be key to achieving the full-year forecast.

The full-year FY2026 forecast (net sales of ¥58,000 million, operating income of ¥2,500 million, net income of ¥800 million) remains unchanged. The 1Q progress rate against the full-year sales forecast was 23.8%, and the operating income progress rate was 30.1%, both generally on track. However, the 1Q net income result of ¥520 million against the full-year forecast of ¥800 million represents a high progress rate of 65.0%, making it important to assess underlying performance excluding temporary factors such as foreign exchange gains. Impairment losses also increased to ¥28 million in 1Q (versus ¥0.6 million in the same period last year), and continued attention should be paid to trends in store profitability.

Growth Strategy

Through the FY2026-2030 medium-term management plan, the company is advancing expansion across four pillars: high-profitability brands, sakaba (izakaya-style dining), overseas franchising, and the resort business.

Continuous promotional measures (lucky bags, discount coupon books, major anniversary sales, PayPay coupons) and seasonal product development are sustaining demand at existing stores, while five new domestic stores were opened in 1Q FY2026. The decision to serve takoyaki at the world's largest soccer tournament is expected to boost brand recognition overseas.

Aggressive store openings continue for sakaba formats such as Gindaco Highball Sakaba and Oden to Robata Takeshi. Four domestic stores and one store in Taiwan were opened in 1Q FY2026. The company disclosed that profitability is improving through cross-format operational improvements and menu composition reviews.

Tokyo Aburagumi Sohonten performed well, driven by growth in existing store sales, while Atsugiri Tonkatsu Yoshihei achieved strong sales and profit through SNS-based promotional measures. A combined total of 7 new stores under both brands were opened in 1Q FY2026, expanding the profit contribution of staple food formats.

In 1Q FY2026, one Tsukiji Gindaco store each was opened in the Philippines and Indonesia, and one Gindaco Highball Sakaba store was opened in Taiwan. The company is working to improve profitability through strengthened collaboration with local partners, menu composition reviews, and optimization of store operations. In the United States, the company is rebuilding its profit foundation through a review of its business portfolio and expansion of external sales channels.

Expansion of external sales to convenience stores, service areas, and mass retailers, together with expansion of the vending machine business, resulted in 1Q FY2026 net sales of ¥460 million (up 17.9% year on year). The company is promoting improved profitability through greater production efficiency and loss reduction, functioning as a stable source of profit for the group as a whole.

Centered on Eki no Tennen Onsen & Sauna no Mori Mizunuma Village, the company implemented event initiatives, enhanced food and beverage functions, and renovated its yakiniku BBQ facilities. While 1Q FY2026 net sales grew rapidly to ¥46 million (up 106.3% year on year), the segment loss continued at ¥35 million (compared with a loss of ¥22 million in the same period of the previous year). The business remains in a foundation-building stage aimed at achieving medium- to long-term profitability.

Last updated: July 17, 2026