GINZA RENOIR CO.,LTD

Business Details

Ginza Renoir Co., Ltd. is a single-segment company that directly operates cafés under multiple brands, centered on "Kissa-shitsu Renoir" (Renoir Coffee House), primarily in the greater Tokyo metropolitan area. As of the end of FY2026 (ending March 2026), the company operated 103 stores, with providing a place of relaxation and comfort as its core value. The majority of sales consist of domestic beverage and food sales, and the company employs a regionally concentrated, high-density store opening strategy. While continuing new store openings and format changes, the company also works on cost reductions such as improving staffing efficiency.

Recent Overview

Net sales and profit improved at every level, with net income returning to positive territory for the first time in two periods

In FY2026 (ending March 2026), net sales were ¥8,347 million (up ¥547 million, or +7.0%, year on year), operating income was ¥195 million (up ¥113 million, or +137.8%, year on year), and ordinary income was ¥250 million (up ¥121 million, or +94.2%, year on year), showing substantial improvement at every profit level. The company had recorded a net loss of ¥76 million in the prior period, but turned to a profit of ¥159 million in the current period. Although the impairment loss increased to ¥203 million (from ¥154 million in the prior period), the recognition of deferred tax assets (income tax adjustment of △¥94 million) boosted net income. While the company opened new stores (two New Yorker's Café locations) and changed the format of the Shibuya Center-gai store, it closed the Kannai Station front store in February 2026, ending the period with 103 stores. Through debt repayment (¥280 million in short-term borrowings and ¥70 million in long-term borrowings), the equity ratio improved to 56.2%.

Key Products

Growth Drivers

• Recovery in dining-out demand driven by improved income conditions from wage increases and expanding inbound tourism demand
• Accelerated store openings for the main brand "Kissa-shitsu Renoir" and expansion of the store opening area centered on the greater Tokyo metropolitan area
• Continuation of various cost reduction measures, including improved staffing efficiency
• Expansion of the customer base through multi-brand deployment including New Yorker's Café, and active store openings in station-front locations
• Forecast for FY2027 (ending March 2026): substantial profit growth plan with net sales of ¥8,609 million, operating income of ¥399 million, ordinary income of ¥461 million, and net income of ¥416 million

Risks

• Vulnerability to changes in the business environment due to single-industry dependence on café operations
• Continued risk of rising raw material costs, including coffee beans, and energy cost inflation
• Labor shortages due to recruitment difficulties and rising personnel expenses (salaries and allowances increased by ¥299 million year on year to ¥2,663 million)
• Uncertain business environment due to geopolitical risks and factors such as U.S. tariff policy
• Ongoing risk of impairment losses (an impairment loss of ¥203 million was recorded in FY2026, ending March 2026)
• Risk of a decline in the number of new store openings due to increasing difficulty in securing properties that meet store opening criteria