ENVALITH
株式会社 木曽路 logo

KISOJI CO.,LTD.

8160・Prime Market・Retail Trade

Official website
株式会社 木曽路 logo
KISOJI CO.,LTD.8160

Business

Kisoji Co., Ltd. is a domestic food-service specialist with a history spanning over 60 years, having opened its first "Mingei-style Shabu-shabu Kisoji" store in Nagoya, Aichi Prefecture in 1966. The company operates a total of 189 stores centered on its core "Kisoji" format (126 stores), alongside "Taishogun" specializing in premium wagyu and "Kuidon" domestic beef yakiniku (44 stores combined), izakaya brands "Ohana" and "Torikaku" (10 stores), Washoku Shunsaidokoro "Suzunoren" (5 stores), and the karaage specialty store "Karashige" (4 stores). Targeting major metropolitan economic zones in the Chubu, Kanto, Kansai, and Kyushu regions as its primary trading areas, the company is a high-value-added Japanese food-service business catering mainly to customers seeking celebratory and special-occasion (hare no hi) dining.

Business Model

In the core "Kisoji" business format, the company provides high value-added services combining premium ingredients, cooking, hospitality, and ambience (QSCA), aiming to raise average spending per customer centered on demand for celebratory and ceremonial occasions. By combining cost management through optimization of purchasing and procurement routes, labor cost control through shift management linked to customer forecasts, and utility cost reduction through the renewal of energy-saving equipment, the company has achieved net sales of ¥54,570 million and an operating margin of 5.3%.

Company Strengths

The core "Kisoji" business format has established an in-house meister certification system specialized in celebratory events (Okuizome, Isshomochi, etc.), providing high-quality hospitality that is difficult for other companies to imitate in a short period. In FY2026 (ending March 2026), sales in the Kisoji Division reached ¥43,405 million (up 2.8% year on year), maintaining stable growth, with brand differentiation contributing to both customer traffic and average spend per customer.

The company operates a total of 189 stores across major metropolitan economic areas, consisting of 56 stores in Chubu, 100 stores in Kanto, 30 stores in Kansai, and 3 stores in Kyushu, building a stable revenue base through regional diversification. By operating multiple business formats including Kisoji, Yakiniku, Izakaya, Washoku, and Karaage, the company has formed a business portfolio capable of responding to diversifying customer needs.

At the end of FY2026 (ending March 2026), the equity ratio stood at 65.1%, with cash and cash equivalents of ¥15,268 million against interest-bearing debt of ¥7,424 million, maintaining a financial structure close to being virtually debt-free. Operating cash flow secured ¥5,431 million, giving the company sufficient financial capacity to fund growth investments such as new store openings, renovations, and M&A through internal funds.

ENVALITH's Perspective

Profit attributable to owners of parent for FY2026 (ending March 2026) fell sharply to ¥1,728 million (down 45.4% year on year), but this reflects a special factor from the prior period (FY2025, ended March 2025), in which income tax adjustment amounted to negative ¥1,310 million (tax burden reduction) due to reversal of deferred tax assets, among other factors. The decline in the current period stems from total income taxes returning to a normalized level of ¥997 million, while operating profit of ¥2,913 million (up 7.6% year on year) and ordinary profit of ¥2,929 million (up 6.3% year on year) show steady improvement. It is important for investors not to be misled by the superficial decline in net income, and instead to evaluate performance on an operating-profit basis.

On the external front, elevated prices of meat and other raw materials, the historic surge in rice prices, and rising logistics costs persist, alongside continued increases in labor costs stemming from minimum wage hikes, resulting in structurally ongoing cost pressure across the food service industry as a whole. In FY2026 (ending March 2026), the operating profit margin improved to 5.3% from 5.1% in the prior period, but the full-year forecast for FY2027 (ending March 2026) [note: as stated] calls for operating profit of ¥3,200 million (up 9.8% year on year), meaning the company will continue to be tested on its ability to balance cost management with increases in average customer spending.

The concentration of sales in the core Kisoji Division (approximately 80% of total sales) remains a structural risk. The Yakiniku brand "Kuidon" began restructuring its business format in January 2026, shifting focus from an all-you-can-eat-centered model to one centered on higher-value-added menu offerings; however, this transition has affected sales in the interim (Yakiniku Division sales of ¥7,919 million, down 0.3% year on year), and realizing earnings improvement is expected to take time. Meanwhile, the Izakaya Division (sales of ¥1,343 million, up 10.2% year on year) has performed well on the back of recovering banquet demand and new store openings, and the success or failure of this multi-format expansion will determine mid- to long-term corporate value.

Growth Strategy

Deepening the Kisoji Division and establishing Yakiniku as a second growth pillar, enhancing corporate value through new store openings, format development, and M&A

Strengthening high-quality hospitality through an in-house meister certification system, and enhancing product appeal via selectable shabu-shabu courses, seasonal limited-time menus utilizing seasonal ingredients, and dessert renewals, aiming to increase customer visits and average spending per customer. Kisoji Division sales in FY2026 (ending March 2026) grew steadily to ¥43,405 million (up 2.8% year on year).

Since January 2026, testing a transition from the conventional all-you-can-eat-centered model to one centered on high-value-added menu items. While aiming to optimize the profit structure, the transition period has affected sales (Yakiniku Division sales down 0.3% year on year), with substantial profitability improvement remaining a task for future periods.

Creating stable visit motivations through thorough CRM (customer relationship management) and strategic promotional activities. Enhanced external sales efforts under the "Taishogun" format have proven successful, advancing the capture of corporate banquet demand. The aim is to improve overall profitability of the Yakiniku Division and establish it as a second pillar following Kisoji.

The Izakaya Division (Torikaku / Ohana) opened 2 new stores, reaching 10 stores by fiscal year-end, with sales of ¥1,343 million (up 10.2% year on year), performing well. Washoku Shunsaidokoro "Suzunoren" achieved sales of ¥735 million (up 10.5% year on year) through a name change and format enhancement. Growth is expected to continue through recovery in banquet demand and new customer acquisition.

In FY2026 (ending March 2026), the company opened 3 new stores, renovated 16 stores, and closed 4 stores, ending the fiscal year with 189 stores. For FY2027 (ending March 2027), the company plans to continue promoting its growth strategy through new store openings, renovation of existing stores, business format development, and M&A. A robust financial foundation (cash of ¥15,268 million, equity ratio of 65.1%) supports investment capacity.

Last updated: July 19, 2026