UKAI CO.,LTD.
7621・Standard Market・Retail Trade
Business
UKAI Co., Ltd. is a premium dining company founded in 1964, listed on the Standard Market of the Tokyo Stock Exchange. Its core operations comprise two divisions: the Restaurant Division, which operates 13 Japanese and Western dinner restaurants including "Ukai Toriyama," "Ukai-tei," "Tofuya Ukai," and "kappou ukai" (as of the end of March 2026); and the Retail Division, which manufactures and sells Western confectionery under the "Atelier UKAI" brand. Its primary customers are those seeking high-value-added experiences, such as for anniversaries, business entertainment, and inbound tourists. In October 2025, the company transferred the Hakone Garasu no Mori (Cultural Business) to another party, transitioning to a structure that concentrates management resources on food & beverage and retail operations.
Business Model
The Restaurant Division is centered on food and beverage sales revenue (¥10,762 million in FY2026 (ending March 2026)), securing earnings through an increase in average customer spending resulting from a review of the pricing structure, including course meals and service charges. The Retail Division sells Western confectionery manufactured at its own workshops through multiple channels, including directly-operated stores, department store events, and e-commerce, recording sales of ¥1,994 million. The structure is designed to capture inbound tourism demand and gift-giving demand while sharing brand value across both business segments.
Company Strengths
Since its founding in 1964, the company has developed high-end brand outlets such as "Ukai Toriyama" and "Ukai-tei," mainly in the Tokyo metropolitan area. In FY2026 (ending March 2026), Restaurant Division sales reached ¥11,022 million, up 4.2% year on year. Despite a decline in customer traffic to 95.7% of the previous period, sales still increased, driven by a rise in average customer spend resulting from a revision of the pricing structure, including course content and service charges, demonstrating the strength of the brand.'
Under the "Atelier UKAI" brand, the company operates directly managed stores, department store events, e-commerce, and wholesale sales. In FY2026 (ending March 2026), Retail Division sales reached ¥1,994 million, up 11.1% year on year, supported by the opening of a store at Gransta Tokyo in September 2024 and a long-term department store event at Hankyu Umeda in November 2025. In addition, construction of the new workshop "Cafe & Factory HACHIOJI" (capital expenditure of ¥733 million) is underway, laying the groundwork for further growth through expanded manufacturing capacity.
The equity ratio improved significantly from 27.2% in FY2022 (ended March 2022) to 47.9% in FY2026 (ending March 2026). Total borrowings also decreased by ¥391 million during the period, strengthening the financial base. Net assets expanded to ¥5,016 million, up 5.2% year on year. The receipt of ¥200 million in consideration for the transfer of the Cultural Business also contributed to the improvement in financial position, providing the company with the financial capacity to withstand new business investments.
ENVALITH's Perspective
Performance Trend
Net sales bottomed out at ¥9,815 million in FY2022 (ending March 2022) and have continued to recover from the COVID-19 pandemic, reaching ¥13,570 million in FY2026 (ending March 2026), the highest level in the past five fiscal periods. Operating profit recovered from ¥722 million in FY2025 (ending March 2025) to ¥831 million, approaching the ¥890 million level recorded in FY2024 (ending March 2024). Meanwhile, net income remained at a low level of ¥295 million. As an external factor, expanding inbound demand has been supporting customer spend per visit and the number of store visitors, but rising labor costs and raw material costs are acting as structural cost pressures that are suppressing profit margins. A substantial increase in the provision for store closure losses weighed on net income.
Growth Strategy
Targeting sales of ¥14,000 million and operating profit of ¥850 million by FY2030 through retail expansion, new workshop launch, and UKAIzm new business initiatives
Construction in progress (recorded as construction in progress: ¥776,617 thousand) with operations targeted to begin in early summer 2026. The New Workshop (Experiential Workshop with Attached Café) is envisioned to expand manufacturing capacity and create new customer touchpoints. This represents the most critical infrastructure investment for accelerating growth in the retail business.
In addition to "Atelier UKAI Gransta Tokyo" (opened September 2024, inside Tokyo Station), a long-term event-based store opening in the Western Japan region began in November 2025. The company is expanding its brand presence and sales opportunities through a multi-channel strategy encompassing department store events, e-commerce, and station-based retail.
The company targets sales of ¥14,000 million and operating profit of ¥850 million (operating margin of 6.1%) for FY2030 (ending March 2030), and sales of ¥16,000 million and operating profit of ¥1,200 million (operating margin of 7.5%) for FY2035 (ending March 2035). Operating profit of ¥831 million in FY2026 (ending March 2026) has already reached 97.8% of the FY2030 target level.
The company aims to create new businesses that leverage synergies with the Restaurant business through its subsidiary UKAIzm corporation, seeking to diversify the UKAI brand and establish new revenue sources.
The transfer of the Cultural Business was completed in October 2025, consolidating operations into a two-segment structure comprising the Restaurant and Retail businesses. This allows management resources to be concentrated on core businesses and facilitates restructuring of the profit structure. A shift in store strategy, including the closure of Tokyo Shiba Tofuya Ukai, is also underway.
Last updated: July 19, 2026