ENVALITH
マルシェ株式会社 logo

MARCHE CORPORATION

7524・Standard Market・Retail Trade

Official website
マルシェ株式会社 logo
MARCHE CORPORATION7524

Business

MARCHE CORPORATION, founded in 1972 and headquartered in Osaka, is a listed company (Tokyo Stock Exchange Standard Market) specializing solely in the food and beverage business. It operates izakaya brands such as "Suikoden," "Hakken-den," and "Gyoza Shokudo Maruken" through 81 directly operated stores and approximately 180 FC stores. Centered on the Food & Beverage Division (Directly Operated Stores) (69.4% of net sales), the company has a composite revenue structure combining royalty income from FC franchisees (7.0%) with the supply of ingredients and alcoholic beverages (21.3%). In June 2025, it became an equity-method affiliate of Tempos Holdings, and in June 2026 it is scheduled to become a subsidiary of that company. The company is rebuilding its earnings base through a shift toward mass-market specialty izakaya formats and the rollout of new meal-focused brands.

Business Model

A three-layer structure built around food and beverage sales at directly operated stores as the core, supplemented by FC revenue (royalties calculated as a fixed rate of monthly sales from FC franchisees, plus franchise fees and deposits), and further by Merchandise Division revenue from supplying ingredients and alcoholic beverages to both directly operated and FC stores. Of the ¥4,767 million in net sales for FY2026 (ending March 2026), the Food & Beverage Division (Directly Operated Stores) accounted for ¥3,308 million, the Merchandise Division for ¥1,013 million, and the FC Division for ¥336 million. Having come under the umbrella of Tempos Holdings, the company aims to cultivate a high-profitability model achieving monthly sales of ¥6 million or more per store, while receiving support in education and business format development.

Company Strengths

Founded in 1972, the company launched the "Suikoden" FC business in 1977 and rolled out "Hakkenden" in 1984. As of the end of March 2026, the number of FC stores totaled over 180 nationwide, led by 157 "Hakkenden" stores. The know-how, brand equity, and franchisee network accumulated through long-term FC operations constitute a unique asset that is difficult to replicate in a short period.

In June 2025, the company conducted a third-party allotment of new shares (¥354 million) to Tempos Holdings Co., Ltd., making it an equity-method affiliate, and in June 2026 it became a subsidiary through an additional capital increase (¥996 million). Through Tempos Holdings' educational support systems and joint format development with its subsidiaries ("New Yamato" and Echigo Tsukemen Dondoko (New Business)), the company has gained personnel development and new-format development capabilities that would be difficult to achieve alone.

The company operates a diverse range of formats, including izakaya (Suikoden, Hakkenden, Kyoshinden), a gyoza specialty restaurant (Gyoza Shokudo Marken), yakitori (Yakitori Eenen (New Format)), and dining-focused formats (Echigo Tsukemen Dondoko (New Business) and Amagasaki Yakisoba Honpo). This covers a broad customer base ranging from daytime and everyday dining demand to nighttime izakaya demand, diversifying the risk of dependence on a single format.

ENVALITH's Perspective

In FY2026 (ending March 2026), sales rose to ¥4,767 million (up 4.1% year on year), but costs associated with various growth strategy initiatives, combined with external factors such as persistently high raw material prices and utility costs and rising labor costs, squeezed profitability. The company posted an operating loss of ¥29 million and a net loss of ¥45 million, falling back into the red from a profit in the previous period. The structure in which SG&A expenses exceed gross profit has continued, calling into question the effectiveness of cost management.

The number of FC franchise stores fell by a net 14, from 199 at the end of the previous period to 185 (19 closures against 5 openings). Royalty income declined 6.0% year on year to ¥278 million, and sales of ingredients and other merchandise fell 7.2% to ¥999 million, indicating that the Merchandise Division is also shrinking. The contraction of the FC network signals an erosion of the fixed-cost recovery base, and there is a risk that growth in the directly operated Food & Beverage Division alone will not be enough to compensate. Attention should be paid to whether efforts to promote format conversions among franchisees can serve as a brake on this trend.

The earnings forecast for the next fiscal period calls for sales of ¥5,000 million (up 4.9% year on year), operating profit of ¥107 million, and net income of ¥60 million, representing a ¥136 million improvement in profit from the current period's operating loss of ¥29 million. This forecast is premised on the simultaneous execution of the five measures under "Super Reform 5" (existing store reform, cultivation of new formats, an annual reduction of ¥80 million in SG&A expenses, merchandise reform, and human resource development), and the hurdle for achievement is correspondingly high amid the continued harsh cost environment in the food service industry. Cash and cash equivalents stood at ¥1,429 million, down ¥687 million year on year, making an early return to positive operating cash flow an urgent priority.

Growth Strategy

The company aims to achieve renewed growth centered on the "Cho-Kaikaku 5" (Super Reform 5) initiative, shifting toward specialized mass-market taverns and a new meal-focused business format.

Transitioning to a streamlined organizational structure with management directly overseeing store operations. Aiming to increase repeat customers through cost-performance appeals such as Hakkenden's 1.5x larger yakitori skewers at unchanged prices and Maruken's "Dodeka Gyoza" (jumbo dumplings). In FY2026 (ending March 2026), existing store sales reached 102.1% year on year, approaching the target level.

Promoting a business model shift from comprehensive izakaya to specialized mass-market taverns. Rolling out new models such as "Osaka Tennoji Hakken Sakaba" and "New Yamato," aiming to cultivate a high-profitability model generating monthly sales of ¥6 million or more per store. During the current period, format conversions were completed at a total of 19 directly operated and franchise stores.

Through a business alliance with Sunrise Service Co., Ltd., the first store will open in Aichi Prefecture in April 2026. The brand aims to capture daytime and everyday dining demand, developing as a revenue pillar outside of izakaya operations.

Targeting an annual fixed cost reduction of ¥80 million through elimination of wasteful costs. The aim is to achieve a sustainable cost structure through efficiency improvements in the system itself, rather than one-time reductions. SG&A expenses for FY2026 (ending March 2026) increased by ¥182 million year on year to ¥2,927 million, and the effects of the reduction have yet to materialize.

Began selling "Dodeka Yakitori" (jumbo grilled chicken skewers) on Amazon, Rakuten, and through furusato nozei (hometown tax donation) programs, building a revenue pillar beyond physical stores. Aiming to reduce dependence on stores by strengthening the MARCHE Online Shop.

Last updated: July 19, 2026