KAN-NANMARU CORPORATION【JP:7585】Stock Price

Kannan Maru operates food and beverage businesses and related services centered on its own casual sushi bar brand. The company runs both company-operated stores and franchised locations under other brands, operating multiple formats including izakayas, Japanese cuisine, Italian restaurants, karaoke, and women's fitness gyms.

The company's primary customers span a wide demographic—local diners, families, after-work patrons, and female customers—with different target segments for each business format. Revenue is primarily generated from food and beverage sales at stores, supplemented by franchise operating fees and gym membership fees.

The business is organized into six divisions, operating the casual sushi bar "Jinbei Taro" as its flagship brand, the karaoke chain "Koban-chan," Japanese-style restaurants "Shoya" and "Nihonkai Shoya," the family-oriented Italian restaurant "VANSAN," and the women-only AI personal gym "FURDI." The company differentiates through store expansion and service offerings across each format, focusing on community-based customer acquisition.

The company has prioritized eliminating its current losses as the top priority, with plans to achieve profitability and then gradually improve profitability. As a medium to long-term goal, the company aims to maintain an operating profit margin of approximately 5% on sales while working toward financial soundness. Given the current equity ratio of 27.7%—which is low—the company is targeting a return to pre-pandemic levels through accumulated retained earnings from improved profitability and a review of head office-related costs.

Key investment areas are improving customer satisfaction, developing talent, and strengthening cost management including raw materials and labor expenses. The company positions service that goes the extra mile for customers as its core competitive advantage, and will increase store visits through timely promotions and format changes or renovations of existing stores. Specifically, the company will improve profitability by simultaneously managing raw material costs appropriately, optimizing staff allocation at stores, expanding training and education investments, and reviewing head office costs.

For new market development and business expansion, the company is focusing its store opening strategy on the Saitama Prefecture region and surrounding areas, with plans to expand a network of neighborhood stores positioned as "corner establishments." The company will leverage multiple business formats—including its own brands of casual sushi bars, Japanese cuisine, Italian restaurants, karaoke, and women's fitness gyms—to target different customer segments for each format. It will also strengthen its franchise model to expand operating revenue. Alongside stabilizing sales through revitalization of existing stores, the company is working to increase the proportion of non-store revenue such as franchise fees and gym memberships.

Regarding technological innovation, the company will use digitalization as a means of operational improvement, including its existing women-only AI personal gym "FURDI." The company will promote store visits and optimize menu offerings through reservation and customer management systems, digitalized promotions, and sales analysis using POS data, while reducing raw material and labor costs through improved kitchen and service efficiency. Through these technology investments, the company aims to accelerate profitability improvements while maintaining service quality.