Sagami Holdings Corporation
9900・Prime Market・Retail Trade
Business
Sagami Holdings Co., Ltd. is a Japanese-food noodle restaurant chain operator founded in 1970. Its brand portfolio strategy centers on its flagship "Washoku Mendokoro Sagami" (166 locations), alongside hand-stretched udon chain "Ajino Mingei" (50 locations), self-service format "Dondon-an" (28 locations), and self-service soba chain "Juwari Soba Nidaime Chosuke," among others. The company operates nationwide with a focus on the Chubu and Kanto regions, running a total of 274 directly-operated and franchise locations. Centered on Japanese food culture such as soba, udon, and miso-nikomi (miso-simmered noodles), it targets a broad customer base ranging from special-occasion demand to daily use. Overseas, the company has also opened locations in Singapore, Vietnam, Europe, and elsewhere, working to spread Japanese food culture abroad.
Business Model
Revenue is composed mainly of food and beverage sales at directly operated stores (directly operated store sales of ¥38,345 million in the fiscal year under review), with royalties (a fixed percentage of sales) and ingredient supply revenue (ingredient purchases for FC stores of ¥733 million) generated from FC stores. The company internally produces preserved noodles, buckwheat flour, and kaeshi (soup base) at its own factories (Moriyama, Tobishima, and Bisai), supplying each store through distribution centers to achieve cost control and quality uniformity. The basic growth model is to expand sales through increases in average customer spend and new store openings.
Company Strengths
All "Washoku Menjo Sagami" stores are equipped with stone mills, grinding buckwheat flour daily and boiling freshly made noodles produced in-house for each order, embodying the "freshly ground, freshly made, freshly boiled" concept. Combined with an in-house production system at its own factories, this has built a quality foundation that is difficult for competitors to replicate in the short term.
The company operates multiple business formats spanning different price points and service styles, from the full-service "Washoku Menjo Sagami" and "Ajino Mingei" to the low-price self-service formats "Dondon-an" and "Juwari Soba Nidaime Chosuke." This enables multifaceted demand capture tailored to various usage occasions and customer needs, with the four segments combined achieving net sales of ¥39,359 million in the current period.
The company produces preserved noodles, buckwheat flour, seasoning sauce (kaeshi), and other items in-house at its own factories in Moriyama, Tobishima, and Onishi (total production for the current period: ¥1,501 million), supplying directly-operated and franchise stores through its distribution center in Tobishima Village. This highly integrated vertical production system, with a high in-house production ratio, contributes to raw material cost management and quality uniformity, while also generating revenue from ingredient supply to franchise stores.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026), the company achieved net sales of ¥39,359 million (+12.3% YoY), operating profit of ¥2,977 million (+44.6% YoY), and net income of ¥1,618 million (+19.3% YoY), reaching record-high profit levels. The operating profit margin improved significantly to 7.5% (from 5.8% in the previous period). External tailwinds included higher average customer spending driven by price revisions, inbound demand, and improvements in income and employment conditions. Meanwhile, from FY2022 (ending March 2022) to FY2026 (ending March 2026), net sales nearly doubled from ¥21,339 million to ¥39,359 million, and operating profit recovered from a loss to ¥2,977 million. However, the company itself forecasts a substantial decline in operating profit to ¥2,400 million (-19.4%) for FY2027 (ending March 2027), raising concerns that cost increase pressures will fully materialize.
Growth Strategy
Pursuing sustainable growth through four pillars: deepening core formats, expanding small-scale formats, promoting DX, and expanding overseas franchises
In FY2026 (ending March 2026), the company opened 14 new stores under the Washoku Mensho Sagami format and 1 new store under the Ajino Mingei format. It has set continued openings of core formats as its policy for FY2027 (ending March 2027) as well, aiming to expand from the group's 274 stores.
The company is promoting a fully automated accounting system using AI automatic recognition (Nisshin store) and the rollout of digital devices across all stores. In response to population decline and labor shortages, it continues to advance labor-saving measures and productivity improvements, aiming to improve its cost structure and establish a competitive advantage.
In FY2026 (ending March 2026), the company opened the "SAGAMI Palma Centro" store (Spain) as a franchise, bringing the number of overseas stores to 10. Meanwhile, it closed the Madrid store and the Thai Ban Rung store, and it maintains a policy of selective expansion while assessing profitability.
Centered on the Sustainability Promotion Office established in April 2023, the company is concretizing measures for global warming countermeasures and ESG promotion. It has obtained certification as an "Excellent Health Management Corporation 2026 (Large Enterprise Category)" and aims to achieve sustainable corporate value growth through securing human resources and improving retention rates.
Last updated: July 19, 2026