(3053) Stock Price

Pepper Food Service operates primarily through the "Ikinari! Steak" restaurant chain. These restaurants use a proprietary operating system featuring electromagnetic cookers with thermal sensors, allowing the company to offer high-quality steaks at affordable prices.

Beyond "Ikinari! Steak," the company operates several restaurant concepts including "Sumiyaki Steak Kuni" (a custom-cut steak restaurant), "Kodawari Tonkatsu Katsuki-tei" (a pork cutlet restaurant), and "Sukihana" (a sukiyaki specialist using Japanese beef and domestic cattle). The company also sells frozen foods and sauces.

The "Ikinari! Steak" business operates on a standing-bar concept where customers enjoy steak and wine. It operates through company-owned stores, franchises, and consignment arrangements. The company offers meat mileage rewards, takeout, and delivery services to drive growth.

In its franchise business, the company recruits franchisees, develops store locations, and provides operational expertise in exchange for franchise fees and royalties. Company-owned stores serve as testing grounds for new products and services, as well as training centers for franchise staff.

Under the consignment model, operators run company-owned stores and pay business fees based on performance. Operators receive training and acquire necessary skills before commencing operations, with ongoing operational support provided.

The product sales business sells frozen hamburgers, garlic rice, steak sets, and other items through its online shop. The company also conducts wholesale distribution of sauces and operates "Ikinari! Yakiniku," a delivery-only brand.

Pepper Food Service has adopted "gradual progress" as its growth strategy theme. The company is advancing business model development in line with market trends while working company-wide to improve sales at existing stores. The company prioritizes customer satisfaction and aims to build a revenue-securing operational structure.

The company's medium to long-term management strategy focuses on three areas: "existing business," "overseas expansion," and "new business models." In existing business, the company is stabilizing revenue while actively promoting digital transformation (DX) and marketing investments. For overseas expansion, the company aims to expand its store network primarily across Asia.

Development of new business models is also a key pillar. The company plans and examines new business models that respond to diversifying food preferences and customer needs, aiming to build business models that will become new growth drivers. Through this approach, the company seeks to create new food culture trends and provide customers with innovative value.

The company also invests in human resource development, cultivating talented employees through rigorous hiring standards and training programs. From a compliance perspective, the company is working to create a workplace environment free from misconduct and crime, while fostering a sense of solidarity among employees.

As part of marketing enhancement, the company leverages SNS and official apps to improve brand image and increase customer touchpoints. The company is strengthening public relations and advertising activities to acquire new customers and improve repeat purchase rates.

The company is also advancing safety management and diversification of food sourcing. It ensures thorough food safety management and carefully selects food suppliers and origins to achieve safe and stable product supply. ISO-certified personnel conduct regular inspections to verify sanitation and quality management.

In response to rising beef prices, the company is implementing various cost reduction measures. Through handling new cuts of beef and other initiatives, the company is strengthening cost management and maintaining price competitiveness. Securing candidate properties for new store openings is also an important priority.

The company is actively developing franchise (FC) partners. By expanding business primarily through FC operations and developing franchise agreements, the company aims for sustainable growth. Through this approach, Pepper Food Service is pursuing further market expansion.