Kairikiya Co.,Ltd.【JP:5891】Stock Price

Kaikirikiya operates "Kyoto Kita-Shirakawa Ramen Kaikirikiya," which primarily serves "Kyoto Back-Fat Soy Sauce Ramen." As of the end of December 2024, the company operates a total of 151 stores, comprising 112 company-operated stores and 39 franchise locations. These stores are located in roadside areas in suburban regions and food courts within commercial facilities.

Company-operated stores are run by employees using facilities in which Kaikirikiya has invested. In contrast, in-house franchise stores operate under an employee independence support program, while franchise locations operate under contracts with affiliated companies. Kaikirikiya receives compensation for trademark licensing and headquarters services provided to these stores.

Beyond ramen, Kaikirikiya operates fried chicken specialty shops including "Karatama-ya" and "Tori Saburo." These stores operate exclusively as takeout establishments with fried chicken as their primary offering. The company also operates "KIBARU," a ramen restaurant specializing in tanmen noodles.

Kaikirikiya's signature menu item is the "Special Soy Sauce Ramen," a back-fat soy sauce ramen made with a base of soy sauce and chicken bone broth combined with pork back fat. The menu also offers variations topped with soft-boiled eggs and Kujo green onions, as well as set meals and children's menu options.

Regarding customer service, employees are trained to consistently uphold the "store philosophy" and "core concept," with a focus on basic service standards including greetings and cleanliness. This approach aims to establish the brand as "a ramen restaurant known for excellent customer service."

Stores are located in suburban roadside areas and feature parking for 10 or more vehicles. An open kitchen format is adopted to facilitate employee awareness of customers. This layout helps minimize initial investment and rent expenses while accommodating a diverse customer base.

Kairikiya is advancing its growth strategy under the vision of "bringing smiles to people around the world through Japanese food culture and the spirit of hospitality." The medium-term management plan aims to accelerate store expansion both domestically and internationally while transforming the revenue structure. Domestically, the company is focusing on expanding stores centered on the "Kyoto Kitashirakawa Ramen Kairikiya" brand, particularly in the three major metropolitan areas and other regions.

To accelerate growth in the domestic market, the company is strengthening a dual approach combining company-operated stores and franchise locations. Company-operated stores are pursuing market dominance in existing regions, while expansion into new markets is primarily led by franchise partners. The company is also considering international market entry, aiming to promote Japanese culture through ramen.

Strengthening supply chain functions is a key part of the strategy. The company is outsourcing certain food preparation work at stores while developing private-label products and maintaining in-house manufacturing capabilities. This approach supports the development of B2B and B2C business opportunities, positioning the company for evolution into a "comprehensive food company."

Additionally, Kairikiya is focusing on new business development. The company is developing new ventures to respond to changing conditions in the foodservice industry, creating next-generation growth engines. Through these initiatives, the company aims to achieve sustainable growth, strengthen its earnings foundation, and enhance corporate value.