■Company Features

1. Balancing profit stability and growth through unique brand management

The diversity (brand portfolio) of owned brands utilizing business type development capabilities realizes both stable earnings and sustainable growth by adapting to environmental changes and dispersing the lifecycles of main brands. In the case of the COVID-19 pandemic from 2020 onwards, it was a situation where business categories in general were affected beyond expectations due to repeated state of emergency declarations, etc. (requests for closure and shortened hours, restrictions on serving alcoholic beverages), etc., but there are differences in the magnitude of impact and recovery speed depending on the business category, such as the cafe business type, amusement business type, specialty cooking business category, etc., and there is no denying the effects of brand portfolio optimization itself. Going forward, it is a policy to promote brand portfolio restructuring (including brand development outside of the restaurant area) with an eye on the post-COVID-19 pandemic, and also work on investment selection and concentration.

2. Improvement of efficiency and mobility through dominant deployment

DD Group ＜3073＞ is based on dominant development that makes use of the diversity of the brands it owns. In addition to being advantageous in terms of attracting customers, centralized store openings in good locations can increase efficiency, such as reducing logistics costs. In particular, in the case of the company, since the roles and characteristics of the brand are different, it is possible to open stores with brands commensurate with the location, there is little competition (cannibalization) between brands, and synergistic effects that increase customer mobility between brands are also demonstrated. The store opening area has expanded to major cities other than the Tokyo metropolitan area due to successive M&A, and even there, the policy is to establish dominant store openings as a basis. Although store development centered around the city center was greatly affected by the COVID-19 pandemic, the advantage of location has been revived as the flow of people has returned. Also, there is a high possibility that well-located store assets and space utilization know-how will be a major weapon in future new business launches and collaborations with other companies.

3. Creating unique stores based on unique concepts

Business type development and store building based on unique ideas are also features (strengths) of the company. Creating unique stores with an emphasis on “concept,” “space,” and “story,” and directing “banquets” where staff sing songs and make customers enthusiastic (delighted) are differentiating factors from other companies. Furthermore, the company has set “customer satisfaction” as its management philosophy, and in addition to promoting further differentiation from other companies in the same industry, it is a policy to continue pursuing a management philosophy, such as creating new value through fusion (collaboration) with external resources including different industries and IPs (anime, games, etc.) owned by other companies.

4. Organizational capabilities that have led to numerous successful M&A

M&A has also played an important role as a factor that has supported the company's growth. In addition to scale expansion, the acquisition of Foodscope's acquisition is a stepping stone for expanding the food and beverage business domain (optimization of the business category portfolio), such as acquiring medium- and high-customer unit price business categories, entering the amusement business through the acquisition of Bagus, and acquiring the cafe business and IP business through commercial art and SLD acquisitions, etc., and by sharing the Group's management philosophy, management resources, operation know-how, etc., it is also a group-integrated value creation ( The fact that (synergy creation) has been realized can be highly praised. Also, it is thought that the rules of experience and organizational abilities cultivated there will be a major advantage in future group restructuring and M&A strategies.

(Written by FISCO Visiting Analyst Ikuo Shibata)