■DD Group ＜3073＞ Company Overview

1. Business content

The “food/beverage/amusement business,” which develops multiple brands of restaurants, cafes, specialty cooking businesses, darts, billiards, karaoke, etc. in major cities nationwide, starting with the Tokyo metropolitan area, has features such as a brand management system that makes use of the diversity of owned brands and dominant development where stores are intensively opened in good locations. Also, since it acquired Shonan Label Co., Ltd. etc. in 2019/12, it is also developing a “hotel/real estate business” such as hotels, rental containers, and real estate sales.

Since starting restaurant management in 2001, it has had a reputation for business type development capabilities based on unique ideas that emphasize “concept,” “space,” and “story,” and while creating unique popular brands such as “VAMPIRE CAFE,” “Alice's Fantasy Restaurant,” and “Versailles Pig,” they are developing high-profit brands such as “warayaki shops,” “Imaiya,” and “BAGUS.” Furthermore, expansion of the business category portfolio and area expansion to Tokai, Kansai, Chugoku (Hiroshima Prefecture, Okayama Prefecture), and Kyushu (Fukuoka Prefecture), such as the development of non-alcoholic business categories such as cafes through aggressive M&A, have supported the company's growth until now.

In addition to the “food and drink and amusement business,” which is the main force, the business segment is classified into two categories: the “hotel/real estate business,” which was added from the 2021/2 fiscal year. The “food and drink amusement business” accounts for approximately 94% of sales (results for the fiscal year ending 2024/2).

An overview of each business segment is as follows.

(1) Food and beverage/amusement business

a) Food and drink

Diamond Dining Co., Ltd., which is the group's core company, has developed businesses such as restaurants, specialty restaurants, cafes, etc. in its own group, and is expanding in major cities nationwide, mainly in the city center and the metropolitan area. The wedding division, which entered in 2017/9, is also included*. Also, SLD ＜3223＞, which was consolidated in 2019/3, has the advantage of being a collaboration event with IP content (creations such as anime, games, comics, music, etc.) owned by other companies in the dining/cafe business category. Meanwhile, the overseas food and beverage business was withdrawn in August 2021 due to the transfer of shares in overseas subsidiaries.

*As a wedding division, we operate “Kyoto Greetings” (Higashiyama-ku, Kyoto-shi), “NOVEL SHINSAIBASHI” (Chuo-ku, Osaka-shi), and “CASA FELIZ” (Nishi-ku, Hiroshima-shi).

b) Amusement

Similar to food and drink, Diamond Dining, which is the group's core company, operates high-class billiard, darts, karaoke, etc. stores, simulation golf, complex cafes, etc. with “BAGUS” as the main brand, and is also developing directly managed stores such as the gastropub & sports bar “THE PUBLIC” and the capsule hotel “GLANSIT” mainly in Tokyo.

The number of directly managed stores (entire group) in the “food and beverage amusement business” at the end of the 2024/2 fiscal year was 323 stores* for 115 brands. Among them, 197 top-class restaurants in the food and beverage industry have been opened (dominant development) along the Yamanote Line, and store opening areas such as Tokai, Kansai, China, and Kyushu have also expanded.

*We also have 9 other stores as licensed and contracted stores.

(2) Hotel and real estate business

It is centered around the Shonan label, which was consolidated in 2019/12. Under the slogan “Shonan to the SHONAN of the world,” we are focusing on businesses related to people's lives, based on Shonan's highly sensitive beach culture. In addition to 6 hotel management businesses in Kanagawa Prefecture, they are involved in multiple businesses such as container rental business, rental business, detached real estate sales business, share house business, etc.

(Written by FISCO Visiting Analyst Ikuo Shibata)