Corporate Governance

Our Business

It is a blissful moment for family members to sit around a conveyor-belt sushi counter and wait impatiently for their favorite dishes to come around next. Delivering this pleasurable eating experience to our customers is nothing less than our sincere desire at Kappa Create Co., Ltd.
When talking about Japanese food, sushi may be the first to come to mind, but it has long been perceived as being high-class and expensive. The conveyor-belt-style sushi dining has revolutionized the sushi concept by making sushi more familiar and casual, allowing people to enjoy their favorite items to their hearts’ content. The "Kappa-Sushi" chain deployed by Kappa Create sushi combines the attraction of conveyor-belt-style sushi dining with "low price" and "high quality." Ever since its establishment in 1973 the "Kappa-Sushi" chain has been the forerunner of its industry, leading the conveyor-belt-style sushi restaurant business and spreading the casual sushi dining culture throughout Japan.
Each and every sushi variety from "Kappa-Sushi" is available for only 100 yen (105 yen including tax) per plate. "Kappa-Sushi" continues to deliver the pleasure of new-style sushi dining further enhanced by coexistence of low prices and high amenity.

Features of Kappa-Sushi Restaurants

With the recent completion of remodeling of our shops which was begun in 2007, almost all of our sushi restaurants are now large-scale establishments with a capacity of over 100 seats. In addition to counter seats, many box sets for families and groups are neatly laid out inside the spacious shop, allowing many customers to make themselves at home and enjoy dining without being bothered by others.
The foremost feature of "Kappa-Sushi" shops is a combination of "touch panels" and "special express lanes." The touch panel allows the customer to order his/her favorite sushi variety while viewing the screen. Accurate and speedy ordering has thus become possible, which is favorably accepted by customers. What’s more, the item ordered is conveyed on our Shinkansen special express lane and promptly delivered to the customer’s seat. Enabling sushi to be delivered in the shortest possible period of time from the point of ordering and with certainty, this advanced system is also substantially contributing to the overall efficiency of hall operations.
With respect to kitchen facilities, "sushi robots" designed to squeeze and form specially seasoned sushi rice (shari) into a bite size are actively at work in each shop. Kappa-Sushi also operates a network system, in which its own regional central kitchens collectively prepare topping ingredients (neta) and automatically distribute them to member restaurants in the chain ? another low-cost feature enabling multi-shop operations.
Furthermore, our newly opened shops are completely equipped an "entirely electrified system" with all pieces of kitchen equipment electrified. Not only does it enhance the kitchen environment including the maintenance of high levels of hygienic standards, but it also promotes manual-based standardization cooking operations. We are pushing forward with further introduction of this system as it is expected to contribute to overall betterment of our operations ? for increased shop operational efficiency and enhancement of safety as well as an environmental measure contributing to energy saving and reduction of CO? emissions.

Our Business Performance for the Previous Term

Though some signs of self-sustained recovery began to be seen in the overall economic environment, the Japanese economy during Kappa Create’s 32nd Term (March 2009 ~ February 2010) still remained weak. Price competition further intensified in the restaurant industry, including competition with other types of restaurant industry. This put the management environment of our industry in continued severity.
Under such circumstances, however, our Kappa Create Group could enhance our profitability in all aspects of our operations by energetically expanding sales at existing shops and promoting measures to strengthen their management foundations.
In the current term (on a consolidated basis) our group newly opened 32 shops and closed 4 shops resulting in a total of 354 shops. With regard to the existing shops, remodeling centering on the introduction of "touch panels" and "special express lanes" has been completed except for a limited number of shops. We also expanded the number of shops that offer the "Lunch 94" campaign (a lunch-time campaign offering sushi for 94 yen per plate instead of the regular price of 105 yen), which enjoys significant popularity among customers. In addition, in order to outshine the competition in price, we further expanded the number of shops offering the "Weekdays 90" campaign (a campaign offering sushi for 90 yen per plate throughout the day during week days). Thanks to these promotional efforts, the existing shops are maintaining a steady sales growth.
As eco-friendly measures, we introduced what we call "eco-chopsticks" and powdered green tea, successfully resulting in significant reduction in the volume of waste discarded.
As a result of all these efforts, our consolidated sales for the current term grew to 8.613 billion yen, operating profit to 5.583 billion yen and ordinary profit to 5.432 billion yen.
As the whole restaurant industry struggles toward low-price competition under the harsh business environment as stated above, we were quick to introduce the "uniform, low price" business model and have gained wholehearted support from customers. However, we need to boldly take up more and more challenges in order to attain further growth.
In the days ahead we are determined to enrich and expand our promotional measures even further, including the continuation of the highly effective "sales campaigns for specified periods" and new shop opening at an annual pace of some 40 shops, in addition to increasing the number of shops conducting "Lunch 94" and "Weekdays 90" campaigns.
We are well aware that we would be able to maintain or develop our strength only when we can live up to increasingly strict customer requirements and continue to offer high-quality products at low prices. For this purpose we will initiate whatever actions possible, such as the establishment of our own logistics systems, efforts for more efficient purchasing and streamlining of factories. We are firmly determined to remain one step ahead of the competition in respect to price competition as well as taste and reliability of our products ? to achieve increases in both consolidated sales and profit again in the 33rd term.