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東和フードサービス株式会社 logo

TOWA FOOD SERVICE CO.,LTD

3329・Standard Market・Retail Trade

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東和フードサービス株式会社 logo
TOWA FOOD SERVICE CO.,LTD3329

Food Service Business (TOWA FOOD SERVICE CO.,LTD., single segment)

A directly-operated food service business with 109 stores across Tokyo and three surrounding prefectures

PeriodCurrentPreviousChange
Net sales¥13,314 million¥12,812 million↑
Operating profit¥983 million¥1,062 million↓
Ordinary profit¥1,133 million¥1,099 million↑
Net income¥751 million¥720 million↑
Operating margin7.4%8.3%↓
Total assets¥9,815 million¥9,169 million↑
Net assets¥7,770 million¥7,171 million↑
Equity ratio79.2%78.2%↑
Earnings per share¥93.05¥89.31↑
Net assets per share¥962.71¥888.76↑
Cash flow from operating activities¥1,041 million¥932 million↑
Cash and cash equivalents at period-end¥1,720 million¥1,858 million↓
Annual dividend per share¥22.00¥20.00↑

Business Details

Under the management philosophy of "providing safe and enjoyable dining spaces for urban life through taste and service," the company directly operates all five business formats: Tsubakiya Coffee, Ducky Duck, Italian Dining Dona, Kotegaeshi, Pastakan, and Pronto. Pasta sauces, dressings, coffee beans, cakes, and other products are manufactured at its own central kitchens (Totsuka Commissary and Fukagawa Confectionery), and the company also engages in EC, retail/event sales, and OEM sales. As of the end of FY2026 (ending April 2026), the total number of stores stood at 109 (down 1 store year-on-year).

Recent Overview

Net sales reached a record high, but operating profit fell 7.4% year-on-year due to rising costs

In FY2026 (ending April 2026), net sales reached a record high of ¥13,314 million (up 3.9% year-on-year). Rising inbound demand and price revisions contributed to an increase in average customer spending, with Tsubakiya Coffee (107.1% year-on-year) and Italian Dining Dona (108.8% year-on-year) leading the growth. On the other hand, selling, general and administrative expenses expanded to ¥8,685 million (up 4.6% year-on-year) due to rising ingredient prices and labor costs, causing operating profit to decline to ¥983 million (down 7.4% year-on-year). Ordinary profit was maintained at ¥1,133 million (up 3.1% year-on-year), supported by an increase in non-operating income including interest received of ¥48,935 thousand and foreign exchange gains of ¥52,352 thousand. For the following fiscal year (FY2027, ending April 2027), the company forecasts net sales of ¥13,500 million (up 1.4% year-on-year) and operating profit of ¥800 million (down 18.7% year-on-year), indicating that cost pressures are expected to continue.

Key Products

service
Tsubakiya Coffee Group

Under the concept of "60 minutes of relaxation and comfort," the group offers upscale interior design and hospitality service. It marked its 30th anniversary in April 2026, strengthening brand power through the development of new specialty blends, direct sourcing trips to Panama and Ethiopia, and expansion of an in-house contest featuring a Japan Siphonist Championship winner. A new store, Tsubakiya Sabo Omiya, was opened, while the Ginza Main Store and Tokyo Opera City store underwent renovation.

service
Ducky Duck Group

The group's core offering is a set menu combining homemade cakes made with seasonal ingredients and food items. Stores with an attached cake studio hold events such as the "Dream Patissier Experience" and collaborations with universities. The anniversary cake web reservation site has been well received amid rising demand for special occasions such as Children's Day and Mother's Day. The Ikebukuro store underwent renovation.

service
Italian Dining Dona Group

Under the concept of "a place to casually enjoy authentic Italian cuisine," the group uses in-house fresh noodles, pasta sauces, and dressings. Table ordering systems have been introduced at 21 stores, and efficiency is improving through in-house production at central kitchens. The group operates a dominant strategy with the Shinjuku Kinokuniya and Shinjuku East Exit stores. The Kashiwa and Omiya stores underwent renovation.

service
Kotegaeshi / Pastakan Group

The group's mainstay offerings are monjayaki and okonomiyaki, and it is making progress in attracting inbound visitors and younger customers. DX initiatives such as cooking videos, multilingual support, and table ordering systems have been completed. A new flagship store, Pastakan Ikebukuro Sunshine City Alpa, was opened. A store manager from the Kotegaeshi Group participated in the national customer service role-playing contest.

service
Pronto

Operated as a franchisee. The format offers a cafe experience during the day and, as "Kissakaba" in the evening, a casual setting to enjoy drinks. Offerings include coffee, toast, muffins, and lunch pasta, and evening operations are responding to recovering demand for alcoholic beverages.

product
Production Division, EC Business, and Retail/Event Sales Business

The company's own central kitchens manufacture pasta sauces, dressings, bread, coffee beans, and other products, and also conduct external OEM sales. All manufacturing facilities have obtained ISO22000 certification. The EC business operates through the company's own site, "Tsubakiya Online Shop," mainly offering gift products. The retail/event sales business sells homemade cakes at department stores and station-area locations.

Growth Drivers

  • Rising average customer spending driven by increased inbound demand and price revisions (Tsubakiya Coffee Group up 107.1% year-on-year, Italian Dining Dona up 108.8% year-on-year)
  • Strengthened brand power leveraging Tsubakiya Coffee's 30th anniversary (development of specialty blends, direct sourcing trips to origin countries, and use of a siphonist championship winner)
  • Expansion of the revenue base through new store openings (Tsubakiya Sabo Omiya, Pastakan Ikebukuro Sunshine City Alpa) and renovation of existing stores
  • Improved productivity through table ordering systems (rolled out to 35% of stores overall) and in-house production at central kitchens (approximately 50% in-house production ratio)
  • Strengthened cost control and reduced disposal losses through the establishment of a daily theoretical-versus-actual cost variance management system
  • Improved customer service quality and differentiated experience value through promotion of service etiquette certification acquisition (46 new certifications, 19 more Level 1 passers)
  • Strengthened capture of inbound demand through hiring of foreign staff and multilingual support initiatives
  • Capturing special-occasion demand through digital initiatives such as the anniversary cake web reservation site

Risks

  • Risk of rising cost ratios due to continued surges in raw material prices (coffee beans, flour, dairy products, eggs) and energy costs
  • Risk of rising labor costs due to chronic labor shortages in the food service industry and intensifying competition for hiring
  • Pressure on operating profit from increased selling, general and administrative expenses (FY2026 operating margin of 7.4%, down from 8.3% in the prior year)
  • Risk of reduced consumer willingness to dine out and increased frugality due to prolonged price inflation
  • High fixed cost ratio (labor costs, rent, utilities) inherent to the directly-operated store model and vulnerability to economic fluctuations
  • Risk of recording impairment losses on fixed assets (¥23,171 thousand recorded in FY2026)
  • Rising import ingredient costs and heightened economic uncertainty due to geopolitical risks and U.S. tariff hike policies, among other factors
  • Risk of widening profitability gaps between business formats, as seen in the Kotegaeshi/Pastakan Group's 91.5% year-on-year sales decline
  • Risk of deteriorating earnings, with the FY2027 (ending April 2027) forecast projecting a significant decline in operating profit to ¥800 million (down 18.7% year-on-year)

Last updated: July 25, 2025