KANMONKAI Co., Ltd.

Business Details

The core business is the directly managed and franchise expansion of Genpin, a specialty tora-fugu (pufferfish) restaurant chain. The company's competitiveness lies in its differentiated ingredient procurement capabilities and low-price offerings, with stores deployed domestically. As of the end of March 2026, the company operated 41 directly managed stores and 21 franchise stores, and also conducts an external ingredient sales business to the retail and distribution industry and to ingredient wholesalers. The company is also focusing on strengthening its production system through centralized processing at its headquarters plant.

Recent Overview

Sales were flat, but operating profit fell sharply by 42.2% year on year due to higher cost of sales and personnel expenses

Sales for FY2026 (ending March 2026) were ¥5,272 million (up 0.2% year on year), roughly flat, but gross profit was ¥3,434 million (down 2.1% year on year) due to a rise in the cost of sales ratio stemming from soaring raw material costs and expenses related to the 45th anniversary fair. Selling, general and administrative expenses rose to ¥3,244 million (up 2.0% year on year) due to increases in personnel expenses, recruitment costs, and advertising expenses, resulting in operating profit declining to ¥189 million (down 42.2% year on year). The company recorded an impairment loss of ¥31 million and a loss on sale of fixed assets of ¥6 million as extraordinary losses. Profit for the year was also affected by an income tax adjustment (expense) of ¥11 million associated with the reversal of deferred tax assets, and net profit came to ¥123 million (down 67.3% year on year). Meanwhile, the company's financial position improved through the repayment of borrowings (¥550 million in short-term and ¥140 million in long-term borrowings), with the equity ratio rising from 38.9% to 51.9%. The company also opened two new stores, Kyoto Shijo and Kyoto Karasuma, and opened a stall at the 2025 Osaka-Kansai Expo.

Key Products

Growth Drivers

• Sales boost from the full-year contribution of the two Kyoto stores (Shijo and Karasuma) opened during the fiscal year
• Increase in average customer spending through a focus on eel dishes in summer and improved product appeal such as the natural tora-fugu course meal
• Capturing inbound demand by strengthening outreach to foreign visitors to Japan other than those from mainland China
• Continued expansion of sales channels for the external sale of ingredients and processed products to the retail and distribution industry and ingredient wholesalers
• Improved production efficiency and reduced burden on stores through strengthening the centralized processing system at the headquarters plant
• Improved recruitment and retention rates and productivity gains through initiatives to enhance employee satisfaction

Risks

• Risk of rising cost of sales ratio due to fluctuations in the market prices of raw materials (tora-fugu, eel, etc.)
• Risk of declining demand for dining out due to soaring prices and a downturn in consumer sentiment
• Risk of profit pressure from the continued rise in personnel expenses, recruitment costs, and temporary staffing costs
• Uncertainty in inbound demand, including a decline in visitors from mainland China
• Risk of economic slowdown and impact on demand for dining out due to geopolitical risks such as the Russia-Ukraine conflict and the situation in the Middle East
• Seasonal fluctuation risk from the concentration of sales in the winter season (third and fourth quarters)
• Risk of contraction in the franchise business due to the declining trend in the number of franchise stores (from 24 stores in the prior year to 21 stores in the current year)
• Risk of continued recording of impairment losses (¥31 million recorded in the current fiscal year)