UNITED&COLLECTIVE CO. LTD.
3557・Growth Market・Retail Trade
Business
United & Collective Corporation is a food and beverage company established in 2000 and listed on the Tokyo Stock Exchange Mothers market (now the Growth Market) in 2017. The company operates 81 stores (as of the end of FY2025 (ending February 2025)) across four formats in the Tokyo metropolitan area (primarily Tokyo and three neighboring prefectures) and Osaka Prefecture: the chicken izakaya "Teketeke" (Chicken Izakaya) (63 stores), the offal grill izakaya "Motsuyaki Sakaba Teketeke" (9 stores), the hamburger cafe "the 3rd Burger (Hamburger Cafe)" (7 stores), and the seafood bowl and oden restaurant "Shintaro (Seafood Bowl & Izakaya)" (2 stores). The main customers are general consumers using izakaya and casual dining establishments, and the company emphasizes both affordable pricing and authentic food quality.
Business Model
The core of revenue is food and beverage sales at directly operated stores, with net sales of ¥6,492 million in FY2025 (ending February 2025). Through its proprietary "PPM Strategy (Preparation Process Management)," the company selectively utilizes in-store preparation, domestic and overseas outsourcing, and its in-house processing facility (PPM Center) depending on the product, achieving both outstanding product quality and high productivity simultaneously. Salaries and allowances of ¥1,946 million and rent of ¥1,035 million are the major costs, and thorough cost control is key to improving profitability.
Company Strengths
The PPM Center began operations in September 2021 in Kazo City, Saitama Prefecture. By optimally allocating in-store preparation, outsourcing, and in-house processing on a product-by-product basis, the company simultaneously achieves quality improvement and cost reduction, including the manufacturing of buns and patties for "the 3rd Burger (Hamburger Cafe)". This has established a differentiated cooking process management system within the food service industry.
In addition to the core 63 "Teketeke (Chicken Izakaya)" locations, the company operates 9 "Motsuyaki Sakaba Teketeke" locations, 7 "the 3rd Burger (Hamburger Cafe)" locations, and 2 "Shintaro (Seafood Bowl & Izakaya)" locations, totaling 81 stores. The company has demonstrated flexible responsiveness to changing demand, such as rapidly expanding "Motsuyaki Sakaba Teketeke" to 9 locations in a short period through conversion of existing stores.
Net sales expanded approximately 2.4-fold, from ¥2,724 million in FY2022 (ended February 2022) to ¥6,492 million in FY2025 (ended February 2025). In FY2025 (ended February 2025), the company recorded net income of ¥60 million, returning to profitability. Capital reinforcement through the exercise of stock acquisition rights (increasing common stock and capital reserves by ¥271 million each) also contributed, securing net assets of ¥342 million and resolving the negative net worth position.
ENVALITH's Perspective
Performance Trend
From FY2022 (ending February 2022) to FY2025 (ending February 2025), revenue expanded from ¥2,724 million to ¥6,492 million, and the company achieved a turnaround to operating profit in FY2024 (ending February 2024). However, in FY2026 (ending February 2026), revenue was ¥6,461 million with an operating loss of ¥16 million, falling back into the red. In Q1 of FY2027 (ending February 2027), revenue was ¥1,741 million (down 0.2% year on year), essentially flat, but a rise in the cost-of-sales ratio (from 25.1% to 26.8%) combined with increased hiring, personnel, and promotional expenses caused operating profit to plunge to ¥1 million (versus ¥94 million in the same period of the previous year). The company recorded an ordinary loss of ¥12 million and a quarterly net loss of ¥5 million. As external factors, persistently high raw material and energy prices along with rising personnel costs are squeezing profitability.
Growth Strategy
Improve profitability structure through product renewal and price revisions in existing business formats, combined with human resources strengthening
In addition to redesigning signature products and revising prices, the company aims to create ordering opportunities and increase the number of items ordered per customer through the introduction of a new category, "Bakusoku Tsumami" (Speedy Snacks), and the launch of derivative products. The primary objective is to restore the gross profit margin.
The company will implement price revisions for some products while offering limited-time products to create motivation for both new and repeat customer visits, aiming to lift existing store sales.
The company is promoting stronger recruitment efforts despite an accompanying increase in recruitment-related expenses and personnel costs. By utilizing the Specified Skilled Worker (Tokutei Ginou) system and other measures, it aims to secure stable personnel and develop workforce capability, addressing chronic labor shortages while maintaining store operational quality.
The company will further deepen the standardization and optimization of cooking processes, aiming to improve the gross profit margin and restrain selling, general and administrative expenses through greater efficiency in raw material costs and personnel expenses. Given the rise in the cost ratio in the first quarter, achieving results is an urgent priority.
Last updated: July 17, 2026