COLOWIDE CO.,LTD.
7616・Prime Market・Retail Trade
Business
Colowide Co., Ltd. is a restaurant holding company comprising the Company and 107 consolidated subsidiaries. It holds a diverse portfolio of brands including Gyukaku, Kappa Sushi, Ootoya Gohandokoro, Steak Miya, and FRESHNESS BURGER, operating a total of 2,633 directly operated and franchise stores (as of the end of March 2026) across Japan as well as North America, Asia, and Oceania. In April 2026, the group further expanded its scale by adding C-United Co., Ltd. (565 stores), a cafe format operator. Colowide MD Co., Ltd. supports a vertically integrated business structure, providing an integrated merchandising function—from raw material procurement to processing and delivery—to all group stores through 15 central kitchens and food factories nationwide.
Business Model
Colowide MD Co., Ltd. centrally manages product development, procurement, manufacturing, and logistics, supplying ingredients and products to stores across the group's companies to achieve economies of scale and cost efficiency. In addition to restaurant sales from directly operated stores, the company continuously collects franchise fees, security deposits, and royalties equivalent to 5% of monthly sales from franchise stores. The company has expanded its scale by repeatedly acquiring business formats and brands through M&A and integrating them into its existing merchandising network.
Company Strengths
Colowide MD Co., Ltd. operates central kitchens and food factories at 15 locations nationwide, providing integrated management from raw material procurement through processing and delivery. In FY2026 (ending March 2026), the company's revenue reached ¥101,268 million (up 5.3% year on year), with operating profit steadily expanding to ¥5,168 million, serving as a source of cost competitiveness for the group as a whole.
As of the end of March 2026, the company operated 1,501 directly operated stores and a total of 2,633 stores including franchises, both domestically and internationally. Flagship brands such as Gyukaku (832 stores), Kappa Sushi (309 stores), and Ootoya (455 stores) form the basis of economies of scale. The addition of 565 stores through C-United Co., Ltd. joining the group in April 2026 further expanded this scale.
The company has carried out a series of M&A transactions—Atom Co., Ltd. (2005), Rains International Co., Ltd. (2012), Kappa Create Co., Ltd. (2014), Ootoya Holdings Co., Ltd. (2020), and Seagrass Holdco Pty Ltd (2025)—diversifying its business formats and geographic reach. Seagrass recorded revenue of ¥20,041 million and operating profit of ¥2,583 million in FY2026 (ending March 2026), marking the start of earnings contribution from the Oceania business.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal years, from ¥175,627 million in FY2022 (ended March 2022) to ¥300,090 million in FY2026 (ending March 2026), with the pace of growth accelerating. Operating profit fell into a significant loss of -¥6,743 million in FY2023 (ended March 2023), but returned to profitability from FY2024 (ended March 2024) onward, improving to ¥9,407 million in FY2026 (ending March 2026). However, net income for the period stood at only ¥2,233 million, remaining low relative to the scale of revenue. Amid ongoing structural cost pressures across the food service industry from rising raw material and labor costs, a pattern has persisted in which M&A-driven expansion of scale drives revenue growth, while impairment losses on unprofitable segments continue to weigh on profits.
Growth Strategy
Under Vision 2030, the company aims for ¥500.0 billion in revenue, expanding overseas, institutional catering, and cafe formats as its three growth pillars
In addition to new store openings, renovations, and format conversions for existing brands, the company will integrate C-United Co., Ltd. (acquired in April 2026; comprising 565 stores under brands such as "Kohikan," "Cafe Veloce," and "Cafe de Crie") into the group, nurturing the cafe format as a new revenue pillar. Cost efficiencies will also be pursued through collaboration with Colowide MD Co., Ltd.'s merchandising functions.
The company is pursuing in parallel the overseas expansion of "Gyukaku" and its derivative formats (including the new Indonesian format "Rokkaku" and the first "Gyukaku" store in the Middle East), overseas openings of "Kappa Sushi," and the expansion of premium steak formats by Seagrass Holdco Pty Ltd (Oceania). As of the end of FY2026 (ending March 2026), the company operates a total of 420 overseas stores, comprising 159 directly operated stores and 261 franchise stores.
The company continues activities to acquire new sites amid growing demand, primarily from healthcare facilities. The number of contracted sites reached 509 as of the end of March 2026, and profitability is being improved through the construction of a sustainable operating model.
The company is strengthening its integrated procurement, manufacturing, and logistics system centered on Colowide MD Co., Ltd., enhancing cost efficiency across the group. Expansion of supply destinations is also expected as a result of C-United Co., Ltd. joining the group. Colowide MD Co., Ltd.'s revenue for FY2026 (ending March 2026) was ¥101,268 million (up 5.3% year on year), continuing its expansionary trend.
For Kappa Create Co., Ltd. (which recorded an operating loss of ¥255 million) and Atom Co., Ltd. (which recorded an operating loss of ¥828 million), both of which posted operating losses, the company will pursue the recovery of existing-store earning power and the optimization of its store portfolio through price-appeal measures, capturing takeout demand, and enhanced media exposure.
Last updated: July 19, 2026