To Our Shareholders

Trends in the Food Service Industry

In the food service industry, while the business environment remains challenging due to rising costs of raw materials and labor, consumer attitudes are tending to split into two categories: those who are eager to dine out and those who are looking to save money.
In light of these circumstances, our Group is working to build brands that consumers choose, while striving to enhance our corporate value over the medium to long term in accordance with our mid-term management plan, “COLOWIDE Vision 2030.”

Sales Strategies for the Domestic Food Service Business

In our domestic food service business, we are working to stimulate customer visits and capture demand through various initiatives and promotional activities. For example, at “OOTOYA,” we have focused on offering special seasonal menus designed to provide a fun dining experience. At “Gyu-Kaku” and “Shabu Shabu On-Yasai,” we have implemented campaigns such as the “Meat Day Festival” and “Kuroge Wagyu Kalbi All-You-Can-Eat,” leveraging the unique strengths of our meat-focused brands. At “Kappa Sushi,” we are currently offering a 90yen (tax included) menu, all-you-can-eat options, and student discounts on weekdays. In addition, we have focused on capturing takeout and delivery demand through limited-time menus tailored to seasonal events. At “Steak MIYA,” we are working to increase brand awareness by boosting our media exposure. At “FRESHNESS BURGER,” we have encouraged customers to visit during café hours by using and serving seasonal ingredients. At "CHEESE GARDEN", a dessert brand, seasonal offerings have been well-received, while the chocolate brand “SILSMALIA” recorded its highest-ever revenue during the Valentine’s Day event, which marks its busiest period. At Colowide Dining Co., Ltd., which operates the izakaya brands “3-6-5 Sakaba” and “HOKKAIDO,” the company is working to capture demand for banquets such as year-end parties and welcome/farewell gatherings, while also striving to strengthen customer relationships by increasing the acquisition of LINE members.

Overseas Operations

With regard to our overseas food service business, we are working to enhance the profitability of existing stores and form partnerships with major local investors, as well as developing new business formats and opening new stores. In the United States, although we experienced a temporary increase in costs, we implemented an ERP (Enterprise Resource Planning) system to streamline operations through strengthened governance. In Indonesia, a market where we are placing particular emphasis in the Asia region, we opened a new restaurant in January called “ROKKAKU,” a new concept aimed at capturing demand for non-halal yakiniku, in addition to our existing “Gyu-Kaku” yakiniku chain. In the Middle East, in addition to “GYU BOSS,” our food court concept that we have been expanding there, we opened our first “Gyu-Kaku” restaurant in March. Furthermore, through a merger and acquisition, Seagrass Holdco Pty Ltd.— Oceania’s largest steak restaurant chain, which joined the COLOWIDE Group this fiscal year — has opened new stores for its premium steakhouse brands, “The Meat & Wine Co” and “HUNTER & BARREL.”

Progress in the Catering Service Business

In our catering service business, we are enhancing our business capabilities by establishing a sustainable operational model that meets the diverse needs of various contracted facilities. As a result of our continued efforts to acquire new locations and enhance our revenue structure, the number of contracted locations stood at 509 as of the end of March.

Sustainability Initiatives

As part of our sustainability efforts, we are working to reduce greenhouse gas emissions by focusing on waste reduction and optimizing delivery efficiency at factories and logistics facilities nationwide under the jurisdiction of COLOWIDE MD. Examples of activities at the store level include Kappa Sushi launching an initiative called “Don’t Waste Deliciousness,” and OOTOYA participating in “EARTH HOUR 2026,” one of the world’s largest events where lights are turned off for one hour to demonstrate commitment to climate change and biodiversity conservation.

Store Openings and Closings

Regarding store openings and closings, we are expanding our presence with “CHEESE GARDEN” in addition to our core domestic food service brands, such as “Gyu-Kaku,” “Gyu-Kaku Yakiniku Shokudo,” “Shabu Shabu On-Yasai,” and “OOTOYA.” Furthermore, we are implementing initiatives in anticipation of future changes in the business environment, such as the recent opening of “AMATARO SHOKUDO,” a new local Chinese cuisine concept, in Yokohama. In our overseas food service business, we are opening new locations not only in the United States, the Middle East, and Oceania as mentioned earlier but also in Taiwan and Thailand. In Indonesia, in addition to our yakiniku restaurants, we are also expanding our “Kappa Sushi” chain. As a result of these actions, we opened 101 directly managed restaurants and 8 directly managed izakaya stores domestically and internationally, for a total of 109 stores, while closing 52 directly managed restaurants and 7 directly managed izakaya stores, for a total of 59 stores. Consequently, the number of directly managed stores at the end of the current consolidated fiscal year stood at 1,501, and the total number of stores, including franchise stores, reached 2,633. Furthermore, in April 2026, we acquired all shares of C-United Co., Ltd., which operates café brands such as “COFFEE･KAN,” “CAFFÈ VELOCE,” and “CAFÉ de CRIÉ,” thereby adding 565 new stores to our Group. We are aiming for further growth in the future.

Financial Results for the Fiscal Year Ending March 2026

As a result of these efforts, our consolidated financial results for the current consolidated fiscal year reached record highs, with revenue totaling 300,090 million yen, business profit amounting to 12,527 million yen and pre-tax profit amounting to 6,547 million yen. On the other hand, due to the recognition of impairment losses and the write-off of deferred tax assets, primarily related to KAPPA-CREATE CO., LTD. and ATOM CORPORATION, which experienced sluggish performance, profit for the period was 1,713 million yen, and profit attributable to owners of parent was 2,233 million yen.
Revenue by segment for our Group is as follows: COLOWIDE MD Co., Ltd. 101,268 million yen, ATOM CORPORATION 30,434 million yen, Reins International inc., Ltd. 92,647 million yen, KAPPA-CREATE CO., LTD. 73,193 million yen, OOTOYA Holdings Co., Ltd. 37,017 million yen, Seagrass HoldcoPty Ltd. 20,041 million yen and Others 47,059 million yen.
Please note that revenue figures for each segment do not take into account inter-segment revenue or transfers.

Future Outlook

For the fiscal year ending March 2027, the outlook for the global economy is expected to remain uncertain due to developments in U.S. trade policy, signs of a slowdown in the Chinese economy, and ongoing geopolitical risks, particularly in Europe and the Middle East. In contrast, in Japan, the employment environment is expected to remain resilient, and wage growth is anticipated to broaden, suggesting positive prospects for corporate activity and household consumption.
However, in the food service industry, structural cost pressures—such as further increases in raw material and labor costs, as well as labor shortages—are expected to persist, and the business environment is likely to remain challenging. With this in mind, our Group will steadily advance our business operations based on our mid-term management plan, “COLOWIDE Vision 2030,” with a view to enhancing corporate value over the medium to long term. Building on our domestic food service business, we aim to achieve consolidated revenue of 500 billion yen by the fiscal year ending March 2030 through the expansion of our overseas food service business—where market growth is anticipated—,and the expansion of our catering service business as it enters a full-scale growth phase.
With regard to our domestic food service business, in addition to opening new stores primarily in the restaurant sector, we are also working to expand our café operations following the acquisition of C-United by our Group. Furthermore, we are actively pursuing the renovation, relocation, and format conversion of existing stores. We will also further enhance our merchandising capabilities, led by COLOWIDE MD Co., Ltd., to significantly enhance efficiency across procurement, manufacturing, and logistics. Additionally, we are committed to increasing the added value of the products and services we offer and will continue to strive to enhance profitability. With regard to our overseas food service business, in addition to “Gyu-Kaku” and its derivative concepts, as well as “Kappa Sushi”—a sushi concept we are actively expanding— we will also accelerate the opening of new stores under Seagrass Holdco Pty Ltd., which operates a premium steakhouse concept.
With regard to our catering service business, we are working to strengthen our business foundation against the backdrop of growing demand, particularly from healthcare facilities. Furthermore, to ensure long-term growth while fulfilling our social responsibilities, we remain committed to promoting sustainability. We will actively pursue initiatives based on our five key materiality issues: “Contribution to the Environment,” “Food Safety and Security,” “Workplace Diversity and Growth,” “Contribution to Our Community and Society,” and “Strengthen Business Management Foundation.”
We sincerely appreciate your continued support and encouragement.