KAN-NANMARU CORPORATION
7585・Standard Market・Retail Trade
Business
Kannanmaru Co., Ltd. was founded in 1982 as a Daisho franchisee and operates restaurants primarily in Saitama Prefecture within the Kanto region; it is listed on the TSE Standard Market. As of the end of FY2025 (ending June 2025), the company operated a total of 32 stores, comprising 13 outlets of its proprietary brand Taishu Sushi Sakaba "Jinbei Taro," 10 Daisho franchise outlets of Taishu Kappo "Shoya" and 2 of "Nihonkai Shoya," 4 outlets of Italian Kitchen "VANSAN," 1 outlet of Karaoke "Koban-chan," and 2 outlets of Women-Only AI Personal Gym "FURDI." Saitama Prefecture accounts for approximately 85.8% of net sales, reflecting the company's characteristic community-based business development. Its main customer base consists of local residents, including senior citizens, to whom it provides restaurant services at popular price points.
Business Model
The company generates revenue through multi-format operations combining its self-developed brand, Jinbei Taro, with multiple franchise brands from Daisho, VANSAN, and FURDI. Under the franchise brands, it pays royalties of 3-6% of sales to the franchisor headquarters while leveraging brand strength and know-how to attract customers. The structure aims to make effective use of existing assets and improve capital expenditure efficiency by converting underperforming stores into growth formats. Since the majority of sales proceeds are settled in cash, liquidity is relatively high.
Company Strengths
Taishu Sushi Sakaba "Jinbei Taro," the company's proprietary brand that opened its first store in 2018, opened 5 new stores in FY2025 (ended June 2025), establishing a 13-store network. Sales for the period reached ¥607,059 thousand (137.4% year-on-year), showing high growth, and the share of customer visits also expanded from 28.9% in the previous period to 33.7%. It became the most numerous business format among the company's operated stores.
Over the past 4 years, the company invested in a total of 17 stores, including new openings and renovations. By converting unprofitable and low-profit stores into growth formats, the Restaurant & Food Service Business segment achieved a segment profit of ¥61,456 thousand in FY2025 (ended June 2025) (up 203.6% year-on-year). Through the format conversions, the number of customer visits increased 8.5% from 660 thousand in the previous period to 716 thousand.
Of the total sales of ¥1,871,516 thousand, Saitama Prefecture accounted for ¥1,606,391 thousand (85.8%), reflecting an established brand recognition and customer base within the region. Since its founding in 1982, the company has continued operations in Saitama Prefecture for over 40 years, maintaining a community-based store opening strategy centered on the policy of "one shop on every street corner."
ENVALITH's Perspective
Performance Trend
Revenue has continued to recover from a trough of ¥733 million in FY2021, reaching ¥1,872 million in FY2025 and ¥1,424 million (up 1.4% year on year) in the cumulative nine months of Q3 FY2026 (ending June 2026), maintaining a growth trajectory. Meanwhile, operating loss narrowed significantly from ¥727 million in FY2021 to ¥140 million in FY2025, and improved further to ¥77 million (versus ¥109 million in the same period of the previous year) for the cumulative Q3 FY2026 (ending June 2026) period. While external factors such as rising raw material prices, logistics costs, and minimum wage have pressured earnings, improved labor cost management and cost control contributed to the loss reduction by cutting SG&A expenses by 1.9% year on year. The full-year forecast calls for revenue of ¥1,965 million (up 5.0% year on year) and an operating loss of ¥70 million; as of the cumulative Q3 stage, progress against the full-year forecast stood at 72.5% for revenue, tracking broadly in line with plan.
Growth Strategy
Achieving profitability through the expansion of Jinbei Taro and optimization of the business format portfolio
Promoting improvements on both the SG&A cost reduction and cost-of-sales management fronts through a review of the store operation system (optimization of staffing and business hours) and thorough implementation of recipes utilizing seasonal ingredients. In the cumulative third quarter of FY2026 (ending June 2026), SG&A expenses decreased 1.9% year-on-year, and segment profit in the Restaurant & Food Service Business improved substantially, up 86.4%.
Focusing on improving the profitability of "Jinbei Taro," which has established a 13-store network as the company's most numerous format. With format-conversion investment having run its course, the business is transitioning to a phase of stable operation of existing stores and profit maximization. Combining measures to raise average customer spend with operational efficiency improvements to increase the profit contribution of the Restaurant & Food Service Business.
Continuing to convert business formats according to regional characteristics and location conditions, converting low-profitability stores into growth formats such as "Jinbei Taro" and Italian Kitchen "VANSAN." At some stores, sales have declined significantly, and location-dependent risk remains, making improved precision in individual store profit management a challenge.
The "FURDI" business, operating 2 stores, posted sales of ¥30 million (down 7.9% year-on-year) and a segment loss of ¥9 million in the cumulative third quarter of FY2026 (ending June 2026), remaining in the red. Compared with the same period of the previous year (loss of ¥13 million), the loss has narrowed, indicating progress in cost management, but synergies with the restaurant business remain limited.
Last updated: July 17, 2026