KOZO Holdings Co., Ltd.
9973・Standard Market・Retail Trade
Business
KOZO Holdings Co., Ltd. is a food service holding company composed of three segments: the takeout sushi retail business centered on the "Kozo Sushi" and "Chagetsu" brands, the food service business encompassing multiple brands such as "Toritetsu," "Taco Bell," and "Dosanko," and the distribution business handling ingredient wholesale and delivery. The company has 14 consolidated subsidiaries (including 4 overseas), and operates a combined total of 92 directly-owned and 42 franchised retail stores, 40 directly-owned and 228 franchised food service stores, 25 delivery outlets, and 14 ingredient wholesale bases domestically. It transitioned to a holding company structure in July 2024 and is also accelerating overseas expansion (United States, United Kingdom, Germany). Main customers are general consumers (BtoC) and restaurants/commercial food ingredient users (BtoB).
Business Model
In the retail and food service segment, the company generates revenue from product sales at directly operated stores, as well as royalty income and ingredient supply income through its FC system. In the distribution segment, wholesale of commercial-use food ingredients by Toyo Shoji (14 locations nationwide) and delivery sales by Deriz support revenue. The structure aims to improve cost efficiency by sharing logistics and ingredient procurement across the group through cross-over synergies. Fundraising relies mainly on equity finance (third-party allotment of new shares).
Company Strengths
Founded in 1972, the "Kozo Sushi" (Kozosushi) brand has domestic and international recognition, operating 92 directly-managed stores and 42 franchise stores in Japan, along with franchise expansion to 5 locations in Hawaii, USA, 2 locations in London, UK, and 1 location in Düsseldorf, Germany. This long-standing franchisee network serves as the foundation for acquiring new franchise businesses.
The company holds a diverse range of business formats, including takeout sushi, Mexican fast food (Taco Bell), izakaya (Torimasa), ramen (Dosanko-style), curry, and Italian cuisine. TBJ's Taco Bell achieved sales of over 114% year-on-year, growing promising brands while diversifying single-format risk.
Toyo Shoji Co., Ltd. operates 14 sales locations nationwide, having obtained general motor truck transportation business licenses and expanded its delivery network to build logistics infrastructure. This has established a foundation contributing to cost efficiency across the group through coordination with intra-group food ingredient supply.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive years of growth, rising from ¥8,020 million in FY2021 to ¥19,441 million in FY2025, and the growth trend continued into Q1 of FY2026 (ending December 2026), with sales of ¥4,923 million (+6.5% year-on-year). However, operating loss widened to -¥66 million from -¥44 million in the same period of the previous year, and ordinary loss also expanded to -¥47 million (from -¥10 million in the same period of the previous year). External factors, including soaring food material prices centered on rice as well as rising labor and energy costs, put pressure on earnings across all segments. Although a foreign exchange gain of ¥15 million partially supported ordinary income/loss, it did not lead to an improvement in the structural loss-making condition. Against the full-year forecast (revenue of ¥20,500 million, operating profit of ¥102 million), progress as of Q1 stood at 24.0% for revenue, while operating profit fell significantly short, making achievement of the target highly challenging.
Growth Strategy
Under the NEXUS4×4 strategy, the company is advancing dominant store openings, strengthening MD functions, expanding TacoBell, and developing overseas franchising.
The company is withdrawing from stores with declining profitability while promoting dominant store openings in regional areas and in-store openings at supermarkets and retail stores. As of the end of Q1 FY2026 (ending December 2026), the store count stood at 156 (down 11 stores year on year), reflecting a downward trend in store numbers as the company prioritizes qualitative improvement.
With the full-scale launch of the MD (merchandising) division in the distribution business, sales in the distribution business for Q1 FY2026 (ending December 2026) increased 13.3% year on year. The company aims to consolidate procurement functions across the group to reduce food material costs and maximize group synergies. However, pass-through of costs to selling prices has not progressed sufficiently, and profitability improvement remains a work in progress.
The company strengthened its financial base through a third-party allotment of new shares, and is promoting customer acquisition and expanding customer touchpoints through various promotional activities. Sales in the food service business increased 4.8% year on year, but segment loss widened to ¥7 million (compared with a loss of ¥2 million in the same period of the previous year), reflecting a continued investment phase.
The company is expanding "Kozo Sushi" into Europe through a capital and business alliance with UK-based Japan Centre Group Limited and a franchise agreement signed in Düsseldorf, Germany. In Q1 FY2026 (ending December 2026), the overseas business was newly established as an independent segment to improve management precision. Sales increased 4.5% year on year, but losses continue to widen.
Starting in Q1 FY2026 (ending December 2026), the company began supplying products to welfare facilities, expanding its business scope beyond existing eating-out and takeout channels. Sales scale and profit contribution remain limited at this stage, but the aim is to capture new sources of stable demand.
Last updated: July 17, 2026