OHSHO FOOD SERVICE CORP.
9936・Prime Market・Retail Trade
Business
Ohsho Food Service Corporation operates a single reportable segment—its Chinese food business—centered on the "Gyoza no Ohsho" brand, comprising the operation of directly managed restaurants serving primarily Chinese cuisine and the sale of Chinese food ingredients and other products to franchise stores. The company's consolidated subsidiaries include Ohsho Catering Service Co., Ltd. in Taiwan (2 directly operated stores) and a special subsidiary, Ohsho Heartful Co., Ltd. As of the end of March 2026, the company operated a total of 728 stores, consisting of 551 directly managed stores and 177 franchise stores, and maintains a vertically integrated business structure in which ingredients manufactured at its own factories (Kumiyama, Kyushu, Sapporo, Higashimatsuyama, and Funabashi) are supplied to stores. Its main customer base is broad, spanning families, single-person households, and business people, and while inheriting its founding spirit of "fast, delicious, and affordable," the company is also responding to the polarization of consumer spending by expanding its premium menu offerings.
Business Model
Of net sales of ¥116,838 million, sales from directly operated stores accounted for ¥107,159 million (91.7%), while ingredient sales to franchised stores comprised ¥9,679 million (8.3%). The company supplies gyoza, noodles, and ingredients manufactured at its own factories to directly operated stores, and sells ingredients to franchised stores under franchise agreements that include a purchase obligation, while also collecting royalties, franchise fees, renewal fees, and other charges. In-house manufacturing underpins the profit base through quality control and cost management.
Company Strengths
Sales for the same month set a new record high for 49 consecutive months through February 2026, and consolidated net sales achieved five consecutive years of growth and a record high for the fourth consecutive year. Sales rose approximately 38% from ¥84,775 million in FY2022 to ¥116,838 million in FY2026, with the numbers confirming the sustained customer-drawing power of the company even amid the challenging environment in the restaurant industry.
Membership in the "Gyoza Club" reached a record high of 1.32 million members in the 2025 edition. The introduction of a three-tier membership system has been successful, and the 2026 edition is tracking ahead of the previous year's pace as of the end of March. Combined with promotional measures such as draft beer campaigns, major thanksgiving fairs, and founding anniversary events, the company continues to expand its highly loyal repeat customer base.
The company operates five in-house factories—Kumiyama, Kyushu, Sapporo, Higashimatsuyama, and Funabashi—internally producing gyoza, noodles, and ingredients. In January 2026, it automated the noodle production line at the Kumiyama plant, upgraded the gyoza production line at the Kyushu plant with the latest equipment, and modernized foreign-object detection equipment. The high in-house production ratio underpins quality consistency and cost control capability, building a supply system that is difficult for competitors to replicate in the short term.
ENVALITH's Perspective
Performance Trend
Revenue increased 37.8% over five years, from ¥84,775 million in FY2022 (ending March 2022) to ¥116,838 million in FY2026 (ending March 2026), marking a record high for the fourth consecutive year. However, the revenue growth rate decelerated from 9.5% in FY2025 (ending March 2025) to 5.2% in FY2026 (ending March 2026). Operating profit declined for the first time in FY2026 (ending March 2026), falling to ¥10,410 million (down 4.5% year on year), with the operating margin dropping from 9.8% to 8.9%. External factors—persistently high raw material prices, rising labor costs, and increased store construction costs—weighed on profitability. Net income also declined, to ¥7,470 million (down 7.5% year on year). For FY2027 (ending March 2027), the company plans record-high revenue of ¥121,357 million (up 3.9%) and operating profit of ¥10,951 million (up 5.2%), but net income is forecast to decline to ¥7,096 million (down 5.0%), reflecting an anticipated increase in corporate taxes and other levies due to tax system reforms.
Growth Strategy
Sustainable growth built on four pillars: achieving 1,000 stores, DX/AI investment, human capital strengthening, and global expansion
Approximately 300 potential store sites have been surveyed and screened. A new cooking training dojo, training facility, and HR department office have been established in Chuo-ku, Tokyo (to become operational in May 2026), building an integrated system spanning recruitment through training. For FY2027 (ending March 2027), the company plans a net increase of 16 stores (15 directly-operated, 3 new franchise stores) to expand sales scale.
The company is advancing renewal of its host system, review of core systems, and rollout of the takeout online reservation system to franchise stores. An IT Expert Advisory Council (comprising two external experts) has been newly established as an advisory body to the Board of Directors, putting in place a framework for optimizing IT investment. Going forward, the company plans to accelerate DX/AI-related investment and thoroughly pursue productivity improvements such as time performance enhancement.
For FY2026 as well, the company fully accepted the labor union's request, implementing an average wage increase of ¥22,594 per employee (5.9%). The cumulative wage increase rate over the past four years is approximately 37%. The number of new university graduate hires joining in April 2026 reached 154% of the previous year's level. Through Ohsho Academy, the company provides all employees with talent development programs including cooking training, skills certification, and e-learning, continuing to raise on-site capabilities.
The Overseas Business Office was newly established in April 2026, and the company opened its first store in Taichung, Taiwan, the "Taichung Han-Shen Continental Store," marking its first overseas location. This is positioned as the first step toward global expansion for future growth, with the aim of establishing the "Gyoza no Ohsho" brand overseas.
Under the initiative "Gyoza no Ohsho wo Motto Oishiku Challenge 2025" (Making Gyoza no Ohsho Even More Delicious Challenge 2025), the company carried out a full renewal of its noodles, developed new flat-cut noodles, and added seven items to the "Gokuoh Series" (Ultimate King Series). The company is actively promoting store renovations to create a more comfortable dining environment. By balancing premium products with lunch menu offerings in response to bifurcating consumer spending patterns, it addresses a wide range of customer needs.
Last updated: July 19, 2026